Car Auction Houses in India: How to Buy and Sell Cars Through Auctions

What Are Car Auction Houses?

Car auction houses are organised venues (physical, online, or hybrid) where cars are sold to the highest bidder. They play a crucial role in India’s resale market by helping banks, NBFCs, and other institutions to quickly sell their vehicles. Four types of car auction houses in India are really popular. These four auction types are government, banks, NBFC, and private auctions.

Government auctions primarily auction seized cars. Bank and NBFC auctions generally auction repossessed or off-lease vehicles. Private auctions hosted by independent platforms have cars from several dealers or individuals.  
 

How to Buy Cars Through Auctions?

Steps to Participate in Auctions

Search for upcoming auctions where you can buy cars through auction in India. Bank notices and auction house schedules can also help you find upcoming auctions. Secondly, use your identity documents to register on the relevant platform. A security deposit should also be paid for successful registration.

Inspection and Bidding Process

Inspection is non-negotiable because you cannot risk buying faulty cars. You can inspect the car physically or digitally through inspection reports. Once you’ve finalised a car after careful inspection, place a bid that falls within your budget. 

Documentation and Vehicle Delivery

Winning a bid isn’t enough. You must make an initial payment to claim the purchase. The remaining amount can be paid within the disclosed timeline. 

The car auction house will issue a sales certificate upon receipt of full payment. Use it at the RTO to initiate the transfer of ownership. Once all documents are cleared, you can arrange for a vehicle pickup or delivery. 

 

How to Sell Cars Through Auctions?

Eligibility and Listing Process

You can only sell cars via auction in India if they meet all the eligibility criteria set by a particular platform. Generally, you can list your car if you have valid ownership documents and certificates that verify the car’s health. 

To list the car, you’ll mostly be asked to submit details such as the car’s model, mileage, condition, and other relevant information. 

Valuation and Reserve Price Setting

Every car is assessed for its current market value before being listed for auction. You can also take valuation services provided by car auction houses or opt for an independent appraisal. 

This valuation will help you set a reserve price. For those new to auctions, a reserve price refers to the minimum amount that sellers will accept for a listed vehicle. The right reserve price ensures you don’t auction your car at a below-market value.

Auction Day Procedures and Post-Sale Formalities

The vehicle’s listing goes live on the auction day. Hence, all those interested in the car can inspect it before placing their bid. The sale is confirmed if the highest bid meets or exceeds the reserve price.

Once the auction is completed, you must complete the paperwork and clear any outstanding hypothecation, etc. Once the payment is settled, delivery details can be finalised.

 

Top Car Auction Platforms in India

Shriram Automall (SAMIL)

SAMIL is India’s largest phygital (physical + digital) marketplace for buying and selling cars through auctions. It has facilitated over 26 lakh customers and a full spectrum of sellers, including dealers, NBFCs, banks, etc., over the years. 

Besides facilitating transparent auctions, it provides detailed inspection reports, valuation services, and assistance with RC transfer, among other services.  

AUTOBSE

AUTOBSE facilitates auctions for banks and financial institutions. It is a reliable platform for purchasing repossessed cars at significantly lower prices. Their bidding process is straightforward and transparent, allowing even beginners to secure valuable deals. 

Mahindra First Choice (eDiig Auctions)

Mahindra First Choice is another reliable platform with pan-India reach. They utilise tech-first solutions to auction repossessed, used, and scrap vehicles. Besides facilitating smooth auctions, they also provide services, such as e-tenders and negotiated sales.  

Droom Auctions

Droom Auctions conducts public car auctions, which are transparent and ideal for individuals seeking budget-friendly purchases. Its e-auction model enables people to bid on verified car listings. Affordable prices, loan assistance, vehicle inspection services, and repair estimates are a few of Droom’s key highlights.  

 

Pros and Cons of Car Auctions

Pros of Car Auctions

The following advantages attract people to sell or buy cars through auction in India:

• Potential to purchase cars below market prices
• Wide range of vehicle options in one place
• Fast transactions and massive exposure to sellers
• Transparent and structured bidding

Cons of Car Auctions

Before you plan to buy or sell cars via auction in India, be mindful of the following cons:

• Risk of hidden damage in vehicles
• Potential additional costs for repairs, transfer, and taxes
• Paperwork or ownership transfer delays
• Competitive bidding can inflate prices

 

Conclusion

Car auctions are now open and accessible to everyday buyers and sellers in India. As it facilitates faster, more secure, and structured bidding, it has experienced significant growth in recent times.

We’ve shared all the crucial information that people new to car auctions and car auction houses in India should know before participating in any auction. So read and remember the key highlights to confidently bid or sell a car effortlessly. 

If you’re purchasing a car through these auction platforms, don’t forget to insure them under an appropriate Car Insurance policy. You may explore Shriram Car Insurance as it provides enhanced coverage and a wide range of add-on covers at affordable premiums. 

 

FAQs

What is a car auction, and how does it work in India?

A car auction is an event where vehicles are sold to the highest bidder. Sellers list their cars on reliable car auction platforms, and potential buyers place bids to secure ownership. 

 

Who can participate in car auctions—individuals or only dealers?

Both individuals and dealers can participate in car auctions, depending on the type of auction. Some auctions are dealer-only, so read the auction details thoroughly before participating. 

 

What documents are required to buy a car through an auction?

Buyers are generally asked to present identity and address verification documents, such as a PAN or Aadhaar card.

 

How do I register for an online car auction in India?

You can register by finishing the KYC details and paying the required security deposit (often known as EMD). Login details are generally shared after this process.

 

What is an Earnest Money Deposit (EMD), and is it refundable?

EMD is a security deposit that every potential buyer must pay before bidding. It’s refundable if you don’t win the bid. However, the amount is forfeited if your bid wins but you don’t complete the payment.