Whether you’re hunting a cheap daily driver, a flip project, or a collector gem, car auctions can feel like striking gold — until you realize you just paid $18,000 for a $12,000 car with a bent frame. Here are the seven most expensive mistakes buyers make in 2025-2026 and exactly how to avoid them.
1. Skipping the Pre-Auction Inspection (Biggest Money-Loser)
70 % of auction cars are sold strictly “as-is” with no post-sale return.
- Mistake: Trusting the auction’s “condition report” or the 30-second walk-around you get.
- Fix: – Arrive 2–4 hours early on preview day. – Bring an OBD2 scanner, paint thickness gauge, and a flashlight. – Pay the $100–$200 for a third-party inspector if you’re bidding over $15k (AutoInspectorsUSA, Lemon Squad, etc.). – If online-only (Bring a Trailer, Cars & Bids, Manheim Express), demand a live FaceTime walk-around or walk away.
2. Ignoring the “IF” or “TMU” Red Flags
“IF” = If-sale (seller can back out if reserve isn’t met. “TMU” = True Miles Unknown — odometer has been rolled back or broken.
- 2025 stat: TMU cars lose 28 % more value in the first year than clean-title equivalents.
- Fix: Filter them out unless you’re a professional flipper who can part the car profitably.
3. Getting Sucked into Bidding Wars (FOMO Tax)
Average buyer pays 12–18 % over their own max when adrenaline hits.
- Fix: – Write your absolute max bid on your hand/phone before the car rolls out. – Use the “+1 rule”: If you’re outbid, raise by the smallest increment only once. Still out? Walk. – Remember: Another identical car will show up in 2–6 weeks.
4. Forgetting the Buyer’s Premium & Hidden Fees
Most people only look at hammer price and get blindsided: Typical 2025 fees:
- Copart/Manheim: 12–15 % + $89 internet fee
- Mecum: 10 %
- Bring a Trailer: 5 % (capped at $5k)
- Plus state sales tax (0–10 %), transport, and possible $400–$900 “gate/arbitration” fees.
- Fix: Always calculate “out-the-door” cost before you even register.
5. Buying Salvage/Branded Title Without a Plan
Salvage cars look cheap until you discover:
- Insurance companies won’t comprehensively insure them in 41 states.
- Rebuild costs routinely run 50–100 % over estimate.
- Resale drops 30–50 %.
- Fix: Only buy salvage if you have a shop or are parting it out. Otherwise stick to clean titles.
6. Not Researching Auction-Specific Rules
- Copart: 5-day payment clock or $1,000+ late fees.
- IAAI: Some locations won’t let you test-drive even on preview day.
- Barrett-Jackson/Mecum: Credit card deposits can be $10k+ per car if you win multiple.
- Fix: Read the exact terms for that auction house and location the night before.
7. Falling for the “Runs & Drives” Mirage
“Runs and drives” on Copart just means it started and moved 10 feet in the lot — not that flooded Tesla still “ran and drove” when they filmed the video.
- Fix: Watch the actual lot video frame-by-frame. Look for smoke, leaks, warning lights, and listen for rod knock even at idle.
Quick 2025–2026 Auction Cheat Sheet
Best for beginners: Bring a Trailer, Cars & Bids (clean titles, strong photos, 5 % fee) Best for cheap flips: Copart “Clean Title” lane on Tuesdays, Manheim OVE online Best for muscle/project cars: Mecum Kissimmee (January) and Monterey (August) Best for exotics: RM Sotheby’s and Gooding & Co.
Bottom line: The house always wins at auctions — unless you show up more prepared than 95 % of the room. Treat every bid like you’re buying sight-unseen from a stranger on Craigslist, because that’s exactly what you’re doing.
Save this list, screenshot it, and keep it in your phone next time you walk into an auction lane. Your wallet will thank you.
By Mark Smith
Follow us for weekly auction alerts and subscribe to push notifications — never overpay again!