Have you ever wondered what happens to vehicles that are seized or abandoned in a bustling city like New York? The City of New York holds public auctions to sell off these vehicles. This system allows the city to recover unpaid debts and find new owners for these cars, trucks, and more. If you’re interested in snagging a deal on a vehicle, or perhaps even trying to reclaim your own, understanding how these auctions work is crucial.
This guide will walk you through the process of vehicle auctions in New York City, focusing on key aspects like bidding, payment, and what happens after you win. We’ll also address a common question: can you bid on your own repo car at these auctions? Let’s dive in and explore the world of vehicle auctions.
What Happens at a Vehicle Auction?
Vehicle auctions are held by the City of New York to sell vehicles that have been seized for various reasons, such as unpaid tickets or abandonment. Before a vehicle ends up on the auction block, the original owner has a chance to redeem it. To do so, they must settle all outstanding judgments, including tickets, penalties, and interest, within 10 business days of the vehicle being towed. If the vehicle isn’t redeemed in time, it goes to auction.
The proceeds from these auctions are used to cover the expenses of the sale and then to pay off the judgment debt associated with the vehicle. It’s important to note that all vehicles are sold “as is,” meaning there are no warranties, and buyers are responsible for picking up the vehicle from its current location.
Participating in an Auction: Bidding Basics
Interested in bidding on a vehicle? Here’s what you need to know:
- Know the Lot Number: Each vehicle at auction has a lot number. Make sure you know the number of the vehicle you are interested in before you start bidding.
- Highest Bid Wins: Vehicles are sold to the highest bidder. Be prepared to compete if you have your eye on a particular vehicle.
- Bid Disputes: In case of a dispute over the highest bid between multiple bidders, the bidding process for that vehicle will restart to ensure fairness.
- Right to Refuse Bids: The Sheriff’s Office, which oversees the auctions, reserves the right to refuse any bid and can cancel the sale at any point. This is to maintain the integrity of the auction process.
Securing Your Purchase: What Happens After You Win?
Congratulations, you’ve won a bid! Here’s what comes next:
- Payment in Cash: Payment is due immediately in full, and it must be in cash. However, sales tax may be waived if you provide a resale certificate, which is relevant for car dealers.
- Towing May Be Required: Often, auctioned vehicles need to be towed from the yard. Don’t expect keys to be provided; they are generally not available.
- Prompt Vehicle Removal: You must remove your purchased vehicle from the tow yard by 5:00 p.m. on the day of the auction. Failure to do so will result in a storage fee of $20 per day. If you don’t remove the vehicle within 96 hours (4 days) of 5:00 p.m. on auction day, it will be considered abandoned again and may be removed.
- Street Parking and Driving Restrictions: Once you remove the vehicle, you cannot legally park it on the street or drive it until you have proper registration and license plates.
- Certificate of Sale and Title Transfer: You will receive a Certificate of Sale, which is crucial. Take this certificate to the Department of Motor Vehicles (DMV) to get a new title issued in your name. Note that only one certificate is issued per vehicle, and duplicates are not available.
- Salvage Title Considerations: The DMV might classify the auctioned vehicle as salvage. This could mean the vehicle needs to undergo an examination before a new title or registration can be issued. Be prepared for this possibility.
- Tow Fees: The tow yard might charge a separate fee for towing the purchased vehicle out of their yard. Factor this potential cost into your bidding strategy.
Property Auctions: Beyond Vehicles
Besides vehicles, the Sheriff also auctions off real and personal property to satisfy unpaid judgments. These are known as “private asset auctions.” Information on these auctions, including dates, is advertised in New York City newspapers and posted in Sheriff’s and county clerk offices in each county. The money from these property auctions also goes to the creditor who is owed the debt.
Real Property Auction Essentials
- Initial Deposit: Successful bidders for real property must make a down payment of at least 10 percent of the bid price, with a minimum of $2,000. Acceptable forms of payment for the deposit are cash, money orders, and certified checks. A Memorandum of Sale is issued immediately after this initial payment.
- Balance Payment: The remaining balance of the bid price must be paid within three business days after the auction if only a partial payment was made at the auction itself.
- Sale Void if Balance Unpaid: If the bidder fails to pay the balance within the three-business-day timeframe, the sale will be canceled, and the property will be re-auctioned.
- Liability for Non-Compliance: A bidder who doesn’t meet the sale terms may be held responsible for damages to the judgment creditor.
- Additional Costs: The bidder is responsible for paying any applicable taxes or transfer/delivery fees associated with the real property.
- Bid Approval Rights: The Sheriff maintains the right to either approve or deny any and all bids made during the auction.
Personal Property Auction Essentials
- Cash Payments Only: Payments for personal property at auction must be made exclusively in cash.
- Title and Interest Transfer: The Sheriff’s sale transfers only the right, title, and interest in the personal property being sold.
- Bid Approval Rights: Similar to real property auctions, the Sheriff reserves the right to approve or deny any bid on personal property.
Vehicle Auctions — Frequently Asked Questions
Let’s address some common questions about vehicle auctions, including the crucial one about bidding on your own vehicle.
Can I buy back my own vehicle at auction?
No, you cannot directly buy back your own vehicle at a City of New York auction. The rules explicitly prohibit owners from purchasing their own vehicles at these auctions. This is likely to prevent any manipulation of the auction process and ensure fairness. If you are the owner of a vehicle that has been seized, your opportunity to reclaim it is before the auction, by paying your outstanding debts within the specified timeframe.
How old do I have to be to bid at an auction?
You must be at least 18 years old to participate as a bidder and purchaser at these auctions.
What payment methods are accepted? Can I pay in installments?
For vehicle purchases, payments must be made in cash immediately after you are declared the winning bidder. Partial payments or credit cards are not accepted. You need to be prepared to pay the full amount in cash on the spot.
Are there any warranties on auctioned vehicles?
No, there are absolutely no warranties, either expressed or implied, on any vehicles sold at these auctions. This includes the vehicle’s year, quality, or condition. You are buying the vehicle “as is,” and it’s your responsibility to assess its condition beforehand.
How can I check for safety recalls on auction vehicles?
The Sheriff’s Office does not provide any information or guarantees about the functionality, safety, or recall status of auctioned vehicles. It is strongly recommended that potential buyers conduct their own due diligence. A useful tool is a VIN search, which allows you to check for recalls and other vehicle history information.
If I find problems with the vehicle after purchase, can I get compensation from the City?
No, purchasers have no legal recourse against the City of New York, including the Department of Finance, the Sheriff’s Office, or the auctioneer, for any issues that arise with the vehicle after purchase. All sales are final and “as is.”
Can I renegotiate the price if the vehicle is in poor condition?
No, the sale price is final once the auction is complete. The price will not be adjusted after the sale, regardless of the vehicle’s condition.
Are vehicles sold with existing liens?
Yes, in some instances, vehicles with liens may be sold at auction. When you purchase a vehicle, you are buying it subject to any and all recorded liens. This means that even after you buy the vehicle, the lien remains, and the lien holder may have the right to repossess the vehicle. The Sheriff’s Office is not responsible for informing bidders about liens, so it’s crucial to do your own research.
Am I responsible for the previous owner’s parking tickets?
No, you are not responsible for any outstanding parking tickets that were issued to the vehicle’s previous registered owner. Your responsibility for parking tickets starts from when you become the registered owner.
Need Assistance?
For further help or inquiries, you can contact the Department of Finance:
- Online: Send us an email
- In person: Schedule an appointment
This guide provides a comprehensive overview of vehicle auctions in New York City, equipping you with the knowledge to participate effectively, whether you are looking for a new vehicle or understanding the process related to a previously owned one. Remember, while you can find great deals, always do your due diligence and understand the “as is” nature of these sales.
