The types of car auctions in the market are virtually limitless, with most selling to used car dealers, not individual buyers. But be careful not to let the excitement of bidding make you pay more than a car is worth.

Two- and three-year-old used vehicles are often the best values. Not only is the price lower than a comparable new car's, but continuing ownership expenses such as collision insurance and taxes are lower, and a two- or three-year-old used vehicle has already taken its biggest depreciation hit.