If you’ve been thinking about buying a car at auction, you probably know something about the subject. Maybe you’ve heard or read that auctions often have rare cars that can’t be found elsewhere. Maybe you’d like to avoid the dealers’ mark-up. Maybe you’re just looking for a reliable car at a decent price. It’s true you can find some real gems for rock-bottom prices at auto auctions. Some of the major auction houses have longstanding and excellent reputations for value. But there are caveats. Before you rush...

Buying a car from an auction house has become more and more popular in the United States, where it was slower to catch on than in places like Japan. Strong car auction companies have sprung up, and consumers are learning that they can save hundreds of dollars on the car of their dreams. Because of the Internet, it’s now possible to search and locate a specific vehicle from just about any area of the country. If you do your homework, chances are that you’ll find the...