Auction glossary: 50 terms buyers need to know

Last updated September 10, 2026.

This glossary defines the 50 words auction listings and fee schedules use most, from absentee bid to wholesale value. Each entry links to the guide that explains the term in real context, whether that means a fee, a title brand, a bidding format or a piece of paperwork you will actually need.

Absentee bid: An absentee bid is submitted before an auction opens, or entrusted to auction staff to enter on a buyer's behalf up to a stated limit, for someone who cannot attend or watch the live sale. Staff (or the system) stop raising it the moment your limit is reached, the same ceiling logic behind a maximum bid. Not every lot or platform accepts one, so confirm the option before you plan around skipping the live sale. See how bidding actually runs in how a car auction works.
Arbitration: Arbitration is a post-sale window, common on dealer-only wholesale platforms, that lets a buyer challenge a purchase if the vehicle does not match its listed condition. Public salvage and repossession auctions rarely offer anything similar, so a private buyer is usually working with little to no formal recourse once the sale closes. Compare what each side offers in dealer-only versus public auctions.
As-is: An as-is sale means the seller makes no promise about condition beyond the listing and any condition report, and there is generally no test drive before you bid. Almost every vehicle, boat and machine sold at auction, public or dealer-only, sells this way, which is why a careful inspection matters more than at a dealership. Read what a report can and cannot tell you in how to read a condition report.
Bid deposit: A bid deposit is money a platform holds before a sale, separate from the eventual purchase price, usually refundable if you do not win. Ritchie Bros. asks for roughly 25% of a bidder's desired limit, though account verification or approved financing can reduce or waive it, while other platforms simply hold a card for a percentage of an active bid instead. Our guide to registering for an auction covers deposit rules platform by platform.
Bid increment: A bid increment is the minimum amount each new bid must rise above the last one, and it usually grows in steps as the price climbs, a few dollars near the opening bid and hundreds of dollars on an expensive lot. Increments matter most in live and timed sales, where you are reacting to other bidders in real time rather than submitting one number. See how that differs from a sealed bid in sealed bid versus live bidding.
Bidder number: A bidder number is the identifier a platform issues once your registration, identification and any required deposit clear, and it is what lets you actually place a bid on a lot. Some platforms print it on a paddle for in-person sales; online it is simply attached to your account. Registration steps that lead up to it are covered in how a car auction works.
Bill of sale: A bill of sale is the document recording that a specific buyer paid a specific price for a specific vehicle on a given date, separate from the title itself. Keep it with the title, the invoice and any transport paperwork, since several states require it for registration and it is the first document most disputes turn on. Our guide to paying and collecting a win lists it among the paperwork to gather before you leave the yard.
Broker: A broker arranges a sale on behalf of a seller, such as a lender's repossession inventory, without owning the vehicles itself, and typically charges the buyer or seller a fee for that service rather than taking title along the way. A licensed broker is sometimes required by state law for a private buyer to purchase certain salvage-title lots at all. Where brokers fit into the repossession market is covered in buying bank-repossessed vehicles.
Buy now: A buy-now listing lets a buyer accept a seller's fixed asking price immediately and skip the bidding process entirely, alongside the traditional auction and sealed-offer formats some equipment platforms also run. It suits a buyer who has already decided a specific unit is worth a specific number and does not want to risk losing it to a late bid. See how it sits alongside other formats in best platforms for heavy equipment.
Buyer's premium: A buyer's premium is a fee added on top of the hammer price, charged as a flat percentage, a tiered schedule that changes with sale price, or a percentage capped at a maximum dollar amount. It is usually the single largest add-on cost at auction, sometimes rivaling the winning bid itself on a cheap lot. Our guide to auction fees walks through all four common models with real platform examples.
Clear title: A clear title has no open lien and no unresolved ownership claim, and it is the fastest paperwork to register once you have paid. A salvage or rebuilt brand does not by itself prevent a clear title, but it usually adds an inspection step your state requires before registration is issued. Read what to check before you bid in checking a title and its liens.
Condition report: A condition report grades a vehicle's cosmetic and mechanical state on the auction's own scale, lists damage codes and written announcements, and reflects a single inspection at one point in time. It is the seller's disclosure, not a guarantee, and platforms that skip mechanical inspection entirely, like Purple Wave, say so directly in their own terms. Our guide to reading a condition report covers grades, codes and announcements line by line.
Dealer-only auction: A dealer-only auction, such as Manheim, OPENLANE or ACV Auctions, requires a verified dealer's license to register, and sells wholesale inventory like fresh trade-ins and lease returns that never reach a public lot. A private buyer without a license cannot register regardless of how much they are willing to pay. See what that access gap actually costs you in dealer-only versus public auctions.
Documentation fee: A documentation fee covers the paperwork a platform processes on a buyer's behalf, separate from any title-shipping charge for mailing a physical title. It is usually a modest flat amount, but stacked with a gate fee and an internet-bid fee it adds up faster than a buyer's rough math expects. Our guide to auction fees lists it alongside the other charges that surprise first-time buyers.
Flood brand: A flood brand is a title mark specifically recording water damage, which behaves differently from crash damage in a vehicle's electronics and corrosion pattern even when the repair paperwork looks equally tidy. It is a distinct brand from salvage or rebuilt, not a subtype of either. Our guide to title brands explains how each brand is assigned and what it means for resale.
Gate fee: A gate fee is charged simply for taking a purchased vehicle off the auction lot, and it applies on essentially every sale at platforms that use it, whatever the hammer price was. It is easy to miss if you only budget for the buyer's premium. See where it fits alongside other charges in auction fees explained.
Hammer price: The hammer price is the winning bid amount alone, before any buyer's premium, fees or tax are added, and it is the number that shows up in headlines but rarely the number a buyer actually pays. Every fee stacked on top of it is covered in auction fees explained.
Hour meter: An hour meter is the equipment world's odometer, tracking a machine's operating hours instead of miles, and it is exactly as easy to misrepresent as a car's mileage. A low hour count on a machine that otherwise looks heavily worn is worth extra scrutiny, especially against any service records. See how to cross-check it in buying heavy equipment at auction.
Hull identification number: Every boat built since 1972 carries a hull identification number, a twelve-character code stamped into the hull near the transom, functioning as the marine equivalent of a VIN. It must match the number on the title digit for digit, and a mismatched or re-stamped plate is a reason to walk away rather than negotiate. Our guide to buying a boat at auction covers how to check it before you bid.
Internet bid fee: An internet bid fee covers the cost of bidding online rather than in person, and on some schedules it scales with sale price the same way a buyer's premium does. It is worth checking whether a platform's version is flat or tiered before you bid remotely on an expensive lot. Our guide to auction fees covers it among the fees that catch first-time buyers off guard.
Late payment fee: A late payment fee applies once a buyer misses a platform's payment deadline, which on some schedules is as short as two or three business days after the sale. Miss it badly enough and a platform can move to a relist fee instead, so the payment window matters as much as the fee itself. Our guide to paying and collecting a win lines up several platforms' deadlines side by side.
Lemon law buyback: A lemon-law buyback brand records that a manufacturer repurchased a vehicle under a state lemon law after repeated, unresolved defects, a different history from crash or flood damage even though it is still a permanent title brand. Buyers sometimes assume a buyback means only a minor issue; the underlying defect can be anything the manufacturer could not fix within the required attempts. Our guide to title brands covers it alongside the other brands you will see on a listing.
Lien: A lien is a lender's legal claim on a vehicle until the loan behind it is paid off, and it has to be cleared before a title can transfer to a new owner. Most states let you search lien status through the state DMV or a UCC filing search, rather than relying on a seller's word. Our guide to checking a title and its liens explains how to confirm one is actually cleared.
Lien release: A lien release is the lender's own written confirmation that a loan secured against a vehicle has been satisfied, and it is what allows a clean transfer of ownership afterward. Ask for the letter directly from the lender rather than accepting a seller's assurance that it is "on the way." See why it matters most on repossessed vehicles in buying bank-repossessed vehicles.
Light system: A light system is a color-coded run-status indicator, commonly green for confirmed running and driving, yellow for a partial or uncertain start, and red for no-start, attached to a lot alongside its written condition grade. The exact colors and definitions vary by platform, so treat the light as a prompt to read the accompanying text rather than a fact on its own. Our guide to reading a condition report explains how it works alongside damage codes and announcements.
Lot: A lot is a single item up for sale at auction, whether a vehicle, a boat, a piece of equipment or a batch of parts, identified by its own lot number separate from its VIN or title. Every listing, deposit rule and inspection window on a platform applies at the lot level, not the sale as a whole. See how a listing moves from lot number to hammer price in how a car auction works.
Maximum bid: A maximum bid is the ceiling you set before bidding starts, working through a proxy system that raises your bid automatically only as far as necessary to stay ahead, never past your limit. Setting it well means starting from a real retail or wholesale value and subtracting every fee and risk margin first, not deciding in the moment. Our guide to setting a maximum bid walks through the math.
Mileage exempt: A vehicle is mileage exempt from federal odometer disclosure once it passes a certain age, meaning a seller is not required to state an exact reading on the title even if the odometer works. It is a paperwork exemption, not a claim about accuracy, so an exempt vehicle's mileage still deserves the same scrutiny as any other. See how it differs from a true odometer brand in title brands explained.
NMVTIS: NMVTIS, the National Motor Vehicle Title Information System, is the federal database that participating states, salvage yards and insurers report into, and it will surface a prior salvage or junk record even when a seller's paperwork looks clean. It is a title and total-loss index, not a full history report on its own. Our guide to checking a title and its liens explains how to run a VIN through it before you bid.
No reserve: A no-reserve lot has no confidential minimum price behind it, so whatever the highest bid is when the clock runs out becomes the sale price, full stop. That certainty tends to draw more competitive bidding relative to a vehicle's real value than a lot carrying a hidden reserve. See how it compares to a reserve and an on-approval sale in how a car auction works.
Odometer brand: An odometer brand notes on a title that a recorded mileage figure cannot be relied on, sometimes because a broken odometer was replaced and sometimes for less innocent reasons. True mileage unknown is the most common version of this brand. Our guide to title brands covers it alongside salvage, rebuilt and flood brands.
On approval: An on-approval sale, sometimes called subject-to, produces a top bid the same way a normal auction does, but the seller keeps a short window afterward, often 24 to 72 hours, to accept, reject or counter it before the sale is final. Treat a winning on-approval bid as a strong offer, not yet a vehicle you own. See where it sits between reserve and no-reserve sales in how a car auction works.
Pre-bid: A pre-bid is a bid submitted before a sale formally opens, accepted by most platforms as a way to establish an early position without watching the live event. It behaves like any other bid once the sale starts and can be outbid the same as one placed in real time. Our guide to how a car auction works covers where pre-bids fit among the bidding formats.
Product identification number: A product identification number, or PIN, is the equipment-industry equivalent of a VIN, stamped into a machine's frame near the operator's cab or on a data plate. It should match the listing and any service paperwork exactly; a mismatched or illegible PIN is a reason to ask direct questions before you bid. Our guide to buying heavy equipment at auction explains how to check it alongside the hour meter.
Proxy bid: A proxy bid lets a platform's system bid on your behalf up to a maximum you set in advance, raising your position automatically only as far as needed to stay ahead of the next bidder. It removes the need to watch every increment yourself while keeping your final cost at or below your own number. Our guide to setting a maximum bid explains how to size that ceiling correctly.
Public auction: A public auction is open to any registered adult, no dealer license required, though access and fee tiers for non-licensed buyers can still differ from those for licensed dealers on some platforms. Public auctions skew toward salvage vehicles, repossessions, government surplus and enthusiast consignments rather than the fresh trade-ins found at a dealer-only sale. Our comparison of dealer-only versus public auctions covers the real differences.
Rebuilt title: A rebuilt title is issued after a salvage-branded vehicle passes a state inspection confirming it has been repaired and is safe to drive again. It is a permanent, separate brand layered onto the salvage history, not a removal of it, and most states still disclose the underlying salvage record to a later buyer. Our guide to title brands explains how it differs from a clean salvage sale.
Relist fee: A relist fee is a penalty charged when a buyer fails to complete a purchase at all, and the platform puts the lot back up for sale; on platforms that publish one, it can run to a meaningful percentage of the original sale price, and some also bill the shortfall if the second sale brings in less. It is the consequence that follows a badly missed payment deadline. Our guide to auction fees covers it among the fees tied to a missed deadline.
Repossession: A repossession is a vehicle a lender took back after a borrower defaulted on the loan securing it, typically after a state-set redemption period passes without the borrower reclaiming it. Lenders route repossessed inventory to whichever channel their servicing contract already uses, which can be a wholesale auction, a credit union sale, a public lot or a sealed-bid broker. Our guide to buying bank-repossessed vehicles covers all four channels.
Reserve price: A reserve price is a confidential minimum a seller sets before a sale; if bidding never reaches it, the vehicle does not sell to the top bidder automatically. It sits opposite a no-reserve lot, where the highest bid always wins regardless of the number. Our guide to how a car auction works explains how reserve, no-reserve and on-approval sales differ.
Run and drive: A run-and-drive rating means the vehicle started and moved under its own power on the seller's lot on the day it was inspected. It does not mean the vehicle is safe to drive home, and it says nothing about hidden frame, electrical or transmission damage that only shows up once you own it. See what the rating does and does not tell you about transport in transporting a won vehicle.
Salvage title: A salvage title means an insurer declared a vehicle a total loss, usually because the estimated repair cost exceeded a state-set percentage of its value, and the brand stays on the vehicle's record permanently even after any later repair. It is the most common brand on public auction listings and the reason wholesale value, not retail, is the right starting point for a bid. Our guide to title brands explains how it differs from a flood or rebuilt brand.
Sealed bid: In a sealed-bid sale, a buyer submits one best offer without seeing what anyone else bid, which removes bidding wars but shifts the valuation work entirely onto the buyer. It suits patient buyers who already have a firm walk-away number rather than those who want to react to the market in real time. Our comparison of sealed bid versus live bidding covers who each format actually favors.
Sight unseen: A sight-unseen purchase means bidding on a lot you have not personally inspected or had a local inspector examine, relying entirely on the listing photos and any condition report. It is a bigger risk than the hammer price alone suggests, and it deserves a larger risk margin in your maximum bid than a vehicle you or an inspector actually saw. Our guide to buying a boat at auction covers why the underside and transom photos matter most when you cannot attend.
Storage fee: A storage fee accrues, often daily, once a buyer has paid but not yet picked up or arranged transport for a vehicle, typically starting on a fixed number of days after the sale closes. It keeps running whether or not a carrier has been booked, which is why the storage clock, not your own calendar, should set your pickup deadline. Our guide to auction fees explains how it interacts with a late-payment or relist fee.
Title absent: A title-absent lot means no title exists yet for that vehicle, and a buyer will need a bonded or state-specific replacement title process that can take weeks and cost a real fee on top of the purchase price. It is not automatically a scam, but it is automatically slower and more expensive than a title-in-hand purchase. Our guide to checking a title and its liens explains when to walk away from one.
Title brand: A title brand is a permanent note added to a vehicle's title recording a major event in its history, such as a total-loss claim, a flood or a lemon-law buyback. Brands follow a vehicle through NMVTIS even across state lines, though how a new state displays an out-of-state brand can vary. Our guide to title brands explained covers every common brand and what causes each one.
True mileage unknown: True mileage unknown, abbreviated TMU, is an odometer brand noting that a vehicle's recorded mileage cannot be relied on, sometimes because a broken odometer was replaced and sometimes for less innocent reasons. It travels with the vehicle's title the same way a salvage or flood brand does. Our guide to title brands explains how it differs from a simple exemption from disclosure.
VIN: A VIN, or vehicle identification number, is the unique code stamped into a vehicle's dash plate, door jamb and title, and it is the starting point for every history and title check a buyer should run before bidding. Running it through NMVTIS will surface a prior salvage or junk record even when a seller's own paperwork looks clean. Our guide to checking a title and its liens explains where to check it and what a mismatch means.
Wholesale value: Wholesale value is the figure a dealer would pay to acquire a vehicle for resale, already assuming reconditioning costs and a dealer's margin, and it is consistently lower than the retail price a private seller might advertise. Lenders and brokers generally anchor a repossession's asking price to this figure rather than to retail. Our guide to buying bank-repossessed vehicles explains how to use it to sanity-check a bid.