What Is The Light System at the Auction?

Jan 17, 2017

Many car auction houses use something called “the light system.”

The light system uses three colors (red, yellow and green) that indicate how much information the seller has disclosed about the auction car. So at the auction, as each of the cars is introduced, a green, yellow, or red light will be announced (or displayed visually) in addition to any other details about the car. Beware: the lights do not indicate anything about the car’s condition. Many people naively mistake a green light to signify that the car has no problems, but that is not true.

These car auction lights typically mean the following:

  • Red: If you’re a first-time car auction participant or if you aren’t an experienced car mechanic, you may want to steer clear of a red-light auction car. Purchasing an auction car that has a red light means that you will buy the auction car as is—with no arguments or negotiation. If you purchase an auction car on a red-light status, you simply cannot have buyer’s remorse; if you are the winning bidder than the car is yours.
  • Yellow: This light is the trickiest, whether you’re attending a car auction in Fort Wayne, New York, or small-town America. It means that the seller may have disclosed some information about the auction car, such as mechanical defects or a salvaged title, but you may not have every detail about yellow light cars for auction. Therefore, the purchase could go either way.
  • Green: Buying a green-light auto auction car is the safest way to go. If you buy a green-light Fort Wayne auction car, then you can generally feel confident about your purchase. Note that a green light does not mean you are getting an auction car free of any repairs, but you will have the assurance that the car has been inspected and that major repairs have been reported by the seller. Green-light cars for auction are the best type to buy if you don’t want to take a gamble.

Tags: tips
Category: Auction Tips

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