Absolute Auction

An absolute auction (also known as no reserve auction) is a type of vehicle auction in which no minimum price or reserve is set. The vehicle is sold to the highest bidder, no matter what that final bid turns out to be. The seller commits upfront that the car will sell, creating a highly competitive environment. Absolute auctions are common at dealer-only wholesale auctions, bank repossession sales, and estate liquidations.

Absolute auctions often create the best buying opportunities for dealers because the absence of a reserve removes the seller's ability to pull a vehicle if bidding falls short of expectations. Prices can go higher than expected when multiple motivated buyers compete for the same unit.