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As long as you are careful, buying a car through a car auction is safe. Car auctions, just like any other auctions, have their fair share of fraud. If you do the proper amount of research and are careful with whom you are dealing, you can safely buy a car at auction. As with all auctions, a successful transacation depends on knowing both the market value of the goods on which you are bidding and the quality of the seller from whom you are buying. Before buying cars at auction, work on your general car knowledge -- in terms of car prices and the costs of maintenance and repair. You should also have an idea about where the cars at the auction are from and what condition the cars were in prior to auction.