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Government Auction Terms Every Buyer Should Know

A clear, professional guide for anyone bidding on government surplus

Government auctions come with their own language — a mix of mechanical descriptions, legal disclaimers, and bidding mechanics that can confuse even experienced buyers. Knowing these terms before you bid isn't optional. It's the difference between making a smart purchase and walking into an expensive mistake.

This guide breaks down the terminology used across federal, state, and local surplus auctions so buyers can evaluate listings with confidence and understand exactly what they're agreeing to when they place a bid.

Asset & Operational Condition Terms

Run and Drive (Runs/Move)

A Run and Drive vehicle started, shifted into gear, and moved forward and backward at the time the agency inspected it. This does not mean the vehicle is roadworthy, safe for highway use, or capable of long-distance travel. It only reflects the condition at intake — nothing more.

Starts / Does Not Move

The engine starts, but the vehicle cannot move under its own power. Typical causes include:

  • • Transmission failure
  • • Driveshaft or axle issues
  • • Differential problems

Expect repairs and plan for transport.

Non Runner

The engine does not start or turn over. Buyers should assume:

  • • Towing or trailering is required
  • • Unknown mechanical issues may be extensive

Parts Only / Salvage

These assets are not intended for normal road use. They may be structurally compromised, mechanically destroyed, or legally restricted. Buyers typically purchase these for:

  • • Parts harvesting
  • • Scrap value
  • • Component recovery

Registration may be impossible or require major inspections and rebuilding.

As Is, Where Is

The foundation of government surplus sales. You accept the asset exactly as it sits, with:

  • • No warranties
  • • No guarantees
  • • No promises of completeness or operability

You are responsible for inspection, loading, transport, and removal — not the agency.

Removal Requirements

Many agencies now prohibit driving vehicles off the lot, even if they run. Listings may state:

  • • "Towed to facility — must be removed by trailer"
  • • "No on site repairs allowed"
  • • "Buyer responsible for loading"

Always read the removal section before bidding.

Auction Formats & Selling Methods

Sealed Bid Auction

Each bidder submits one confidential bid. No one sees competing offers. After the deadline, all bids are opened and the highest qualifying bid wins.

Timed Auction

The most common online format. Bidding stays open for a set period — often 7–14 days — and closes automatically at the published time.

Fixed Price / Buy Now

No bidding. The first qualified buyer who accepts the posted price gets the asset.

Term Contract Auction

Instead of buying one item, the winning bidder secures the right to purchase ongoing surplus over a defined period. Common for:

  • • Scrap metal
  • • Recyclables
  • • Tires
  • • Bulk materials

Subject to Seller Approval

The high bid does not automatically win. After the auction closes, the agency reviews the result and decides whether to accept or reject the bid.

Bidding & Timing Mechanics

Proxy Bid (Maximum Bid)

You enter the highest amount you're willing to pay. The system automatically bids for you — only enough to stay in the lead — up to your maximum.

Bid Increment

The minimum amount required to outbid the current high bidder. Increments vary by platform and asset value.

Overtime Period / Soft Close

If someone bids in the final minutes, the auction automatically extends. This prevents last second "sniping" and continues until no new bids are placed.

Reserve Price

A confidential minimum set by the seller. If bidding doesn't reach the reserve, the asset may remain unsold.

Multi Item Lot Dynamics

Times the Money

Your bid is the price per item. Final cost = bid × quantity.

All One Money (All For One)

Your bid is the total price for the entire lot, regardless of quantity.

Bidder's Choice

Multiple similar items are grouped together. The winning bidder chooses which item(s) they want at the winning price.

Financial & Post Sale Compliance

Buyer's Premium (BP)

A percentage fee added to the winning bid. Common on many platforms. Always calculate your true total before bidding.

Removal Window (Load Out Period)

The number of days you have to remove the asset. Missing the deadline can result in:

  • • Storage fees
  • • Penalties
  • • Forfeiture of the asset

Default / Bidder Probation

If you fail to pay or fail to remove the asset on time, consequences may include:

  • • Loss of bidding privileges
  • • Forfeited deposits
  • • Temporary or permanent suspension

Government agencies enforce these rules strictly.

Final Thoughts

Government auction terminology isn't just jargon — it defines the rules of the sale, the condition of the asset, and the responsibilities you take on the moment you place a bid. Understanding these terms gives buyers a real advantage: clearer expectations, fewer surprises, and a smoother experience from bidding to pickup.

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