There are free online auto auctions, where you can bid and have the car checked once the auction is over. Web sites specialized in car auctions are just intermediaries, if your bid wins, it is between the two parties involved to close the deal and write the contract. Usually, you can examine the car in daylight before purchase.

Then there are the salvaged cars online auto auctions, where you can buy reconditioned cars that have been recuperated from a flood, a car crash or a fire. Very often, behind such cars lie big scams, that you'd better do some research before going to a car auction.

First you should be suspicious when the price of the car is too low, and when you can track no precise history record. So, when you go to an online auto auction make sure you buy the car below the fair market value, otherwise you'd better go and buy it from the seller directly.

Try not to get caught into a bidding war, because in case you win it, you will have to pay the winner's premium, as most online auto auction sites require. That is, you will pay a specific percent of the total bid to the auction site, which can be quite a sum, in case it's 10% or your bid for instance.

Car rental agencies also try to sell at online auto auctions; however these cars are a lot better maintained than the salvaged cars. Usually car rental agencies use them for a year or two, and then try to take them out of service. Some of these cars still have warranties in affect, so it's better for you to check who you are buying a car from.

Researching for some history records of the car you want to purchase would save you a lot of trouble. Before getting at an online auto auction, check on details on the car you want to bid on. It doesn't matter where you are from, state or country, you can easily be the victim of a scam.