Are Penny Auctions Legitimate? 10 Reasons to Stay Away

penny auctions scam

A penny auction is an auction where the participants pay a non-refundable fee to place small bids on certain items. Each bid gradually increases the price of an item by a certain amount – in this case, by $0.01 – and extends the time of the auction by a few seconds. The bids are placed in small increments and the final auction price is usually significantly lower than the retail price. While penny auctions may seem like a great way to bid for expensive items at low prices, there are some major pitfalls associated with these types of auctions. Here are a few reasons why you might want to use your pennies in other ways rather than on penny auctions:

You Lose Money Even If You Don

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One Response to Are Penny Auctions Legitimate? 10 Reasons to Stay Away

  1. Chad E says:

    Looking to save? Buy used. So many people buy new technology and then end up reselling it on ebay or local classifieds for super cheap. New IPhone? Spent $100.

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