Buying at a civilian or government auto auction can be a great way to buy a quality used car or other asset. Like most things, though, information is key. Below are some frequently used terms that you will find helpful if you are interested in buying a car at auction.

* Off-lease: Refers to vehicles returned to a leasing company at the end of a lease term. Closed auctions are usually the only place for leasing companies to get rid of their large volumes of end-of-lease returned cars. The terms of a lease normally put a restriction on the number of miles driven and require regular maintenance so they can be good bets. Usually, off-lease vehicles are returned within 2-3 years, and often have some portion of their factory warranty remaining.

* Off-rental: Refers to the flood of late-model cars that are replaced (generally once a year) by major car rental companies. Like leasing companies, rental companies also generally rely on auto auctions to sell off their used inventory. Although these vehicles are generally well maintained and driven for only one year, mileage can accumulate quickly on a rental car. In addition, optional features on rental cars are generally limited to an air conditioner & automatic transmission. Usage of rental cars can be rough (think about the last time you rented a car!) so it is safe to assume that each rental car will be driven by a wide range of drivers in a variety of driving conditions.

* Company/fleet cars: Companies of varying sizes own cars, trucks and vans that they often keep for only two to five years. (I typically drive a four to five year old Ford F-150 truck that I buy from a Northern California construction company.) These vehicles are typically well maintained, but like rental cars, often do not have more than the most basic options. Like rentals, the use of company cars varies greatly from the executive sedan driven slowly and carefully to the work truck that regularly climbs, curbs and mountains or gets abused in city traffic.

* Repossessed Cars: Vehicles repossessed by financial institutions, banks and leasing companies are most often disposed of at auction. (I had a beautiful Mercedes Benz 560 SL repossessed years ago - someone probably got a great deal at that auction!) Repossessed vehicles can feasibly sell for less because the financial institution's only real motivation is to recover the amount owed on the car which can be substantially less than the fair market value of the car. The condition of such cars may be marginal (if the owner can't pay the loan, repairs could also be put off). There can also be intentional damage done by the driver who is losing the car, so inspect them carefully.

* Trade-ins: Car dealer inventory that is aging or does not meet their profile (for example an older Chevrolet Malibu that was traded in for a new BMW M5 at a BMW dealer). Trade-in cars may have useful extras and sometimes even valuable after market modifications. The overall condition of such vehicles varies greatly so inspect carefully. Some, though not many, may have some factory or extended warranty period remaining.

Many laws require dealers to disclose if a car has had a major mechanical problems or has been previously damaged to the extent that it mut be classified as "salvage," "junk," or "for export only." There are special auctions for these types of vehicles, (sold mostly by insurance companies) and if you have access to reasonably priced repair services, you may find great deals here.

As always, information is your primary ally. Arm yourself with good information before you head out to the auctions and you will find many Great Deals.