Auction types and auction words

To sell to whoever will pay the most: buyers bid against each other and the item goes to the highest bidder. DealsDMV sells lots this way, and many items at a fixed Buy Now price as well.

The familiar kind: bids are made openly, each one higher than the last, and the highest bid when bidding stops wins. A timed lot on DealsDMV works the same way.

A descending auction: the price starts high and is lowered until someone accepts it. DealsDMV lots go the other way — the price only rises as bids arrive.

A sealed-bid auction in which the highest bidder wins but pays the second-highest bid, not their own. A maximum bid on DealsDMV feels similar: you pay only enough to beat the runner-up.

One where buyer and seller swap roles: sellers compete against each other, and the price is driven down instead of up.

A version of the open auction in which bids are written on a sheet of paper instead of being called out; the highest written bid wins.

An auction where you pay a fee for every bid, win or lose. The FTC's example: a camera won for $50 after 200 one-dollar bids really costs $250, plus shipping. Bidding on DealsDMV is free.

Be careful with them. The FTC warns of registration fees, paying for every losing bid, hidden costs, and late, missing or lower-quality shipments. Learn exactly how one works before you bid.

The price a lot sells for — the winning bid. Fees and tax come on top; on DealsDMV that can mean a buyer's premium, sales tax and any postage you chose.

An auctioneer calling out made-up bids at key moments so demand looks bigger. On DealsDMV every bid comes from a signed-in account and shows in the lot's history, and our Terms ban bids by us or anyone acting for us.

The risk that the winner overpaid, because whoever wins is usually the bidder with the most optimistic idea of the item's worth. Careful bidders set their limit a little below their estimate.

Raising the price by far more than the minimum step, to show rivals you value the lot highly. On DealsDMV, Place Bid bids exactly what you type, while Set Max (Auto) Bid keeps your limit hidden and raises only as needed.