It's wonderful to think of bringing home that shiny brand new car of your dreams. But if you’re one for saving several thousands of dollars, then you may opt to forget brand new and start looking for something a little more reasonable. To do this, you must look around for the best deals and bargains, and one great place to start your search is in events like salvage car auctions.

Do not think that all auctioned cars are beat up and run down. Some have actually been used for only a couple of years with low mileage, and a lot have been well maintained by previous owners. But for someone who is unfamiliar with auctions, the idea can be quite intimidating. Which is why it is always a good idea to attend and observe a few of these events first before you dive in to make a bid.

A salvage car auction can come in several types. The most popular is the Live Auction wherein the car is presented with its starting price (called the floor price) and those interested in the item try to outbid each other. The one who bids the highest gets to buy the car.

Another type is the Sealed Bid wherein each bidder writes the price they are willing to pay on a bid slip, places it in a sealed envelope, and submits it. At the end of the auction period, the bids are opened and the seller chooses which one he will accept.

There are other types, but one that is fast rising in popularity is the online auction wherein a car's photo and description are posted on a weblot (a virtual parking lot) for a specified period. Interested buyers post their bids and at the end of the period, the highest bidder wins.

There are several entities that organize salvage car auctions. Car dealers may do this directly, but usually, it's the auction houses that open up these events. Banks may offer auctions for repossessed vehicles (those that have been taken back from clients who failed to pay their auto loans), and the federal, state and local governments regularly auction used government vehicles as well as those seized and confiscated from lawbreakers.

Many salvage car auctions are announced in newspapers and the web, some are Open (to everyone) while others are Closed (by invitation only). Remember, it pays to dig for lots of information first before you dive in.