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I was looking at the car proof of a car that I was interested to buy. It seems that it was bought from an auction at 20000 km only but the current owner does not know why and he did buy from a dealer with clean title. Is it something I should be worry about and not consider buying the car? What are reasons that a car goes to auction in very low km. I thought it could be accident but car proof does not indicate any accident.

Cars can go to auction if it has been repossessed by the bank

There's lots of reasons cars go to auction. There are wholesale Auctions where used car dealers pick up cars. Also if payments are not made on a car it's re possessed and then goes to auction as well. Nothing to worry about really.

Repo,owner relinquished to financial institute?? Just guessing as I've not been to a mb one but that's what they are out east plus drug bust vehicles too.

Depends on the auction. Mpi auctions are usually collisions, hail, etc. A private auction or any other auction it may have been placed there by the owner or if someone passed away. When buying a car it's usually best to get one that's already safetied or had a pre safety. You could also get a mechanic to look at it and tell you what it would need . Best of luck

If somebody just wants to get rid of a vehicle and doesn't want to trade it off or sell it themselves (time and effort spent) they can take it to auction and just wipe their hands clean of it. Doesn't mean anything is wrong with the vehicle, maybe they just don't need it or don't want the payments anymore.

Isn't necessarily foolproof. It only indicates if an accident occurred in this province, not others.

Such as Murrays or Kellehers will also dump all vehicles they haven't been able to, or are unwilling to sell, on their main lots to auction. I have traded a vehicle off on a brand new one and was told up front they would not even try to sell it on their lot and it would be sent to auction.  
 
Smaller dealers or backyard salespeople (off the top of my head places like Galillee or Alex Fraser) get their vehicles from auctions like this. Years ago I bought a used car from one such place and it had been bought at auction from Murrays.  
 
This may be why the current owner does not have info on it. Once it begins going through multiple channels like that, details can get muddled. Like someone else said, Carfax is not foolproof.

That rental cars are sold at actions as well. Your favorite dealership buys these cars at a considerable discount so they have enough low mileage used cars on there lot. They will say it came from Winnipeg and that is true, as that is where the auction was held. But the car itself most likely came from out east which is not as bad as you have heard about but rental cars are not always claimed with insurance when in an accident and are fixed without a claim and those accidents will not show up on a carfax.

Some of the larger dealerships lease a significant amount of vehicles and when they all come in they don't want them all on their lot so they put some into auction and other dealerships purchase them to boost their used inventory. The cars a perfectly fine but they did come from auction.

Also vehicles that were towed and the owner couldn't afford to get it out or didn't care. There are a lot of reasons cars are auctioned

There is about 25,000 cars every week sold at adesa car auctions,  
they only allow dealers to purchase from them.  
Almost every dealer in the country uses the auction to sell slow moving vehicles on their lot or to purchase needed units for the lot. These cars come from  
rental companies, car manufactures demos, repo units, estate sales  
and of course dealers. The great part is the auctions take all available steps to ensure the vehicle they sell has all available information about the cars history.And if anything is missed the auction will take the car back.

Many vehicles that are returned when the lease is over go to auction.

This conversation is full proof that most of you don't know anything about this topic but instead of just saying nothing you message false information. I know this cause this is what I been doing for 15 years. My Advise don't ask ebrandon ask the professionals they most likely know the right answer.

Why don't you just put what you think the real advice is then?

Yes please let us know what do you think from your 15 years of experience. Actually I learned from all people above and I want to thank you all for your input.  
The mentioned car has been auctioned. At the same line carproof states that it was daily rental car. It also was registered in two provinces as normal. My guess is the car was among regular rental cars that they put in the auction after few months of usage as some ebrandonite said. I am looking for more input to how can I find out if my guess is correct and accident was not the cause of auction.  
 
Edited by Deb1, 2017-07-25 20:44:31

I have worked in both rental and car sales and know what goes on behind the scenes with both industry's.

dancing_queen said "Some of the larger dealerships lease a significant amount of vehicles and when they all come in they don't want them all on their lot so they put some into auction and other dealerships purchase them to boost their used inventory. The cars a perfectly fine but they did come from auction. "

There''s lots of lease returns out West, and many of them are from ON and PQ, being the populous provinces they are.  
 
I added a couple of examples.  
 
If you have questions about the Carproof, call them (and have the report #). You actually get a real person.  
 
Edited by Blue_Guru, 2017-07-26 20:50:40