1. Research the list of cars before showing up to know their value and potential sale price, especially if you plan to flip it.
2. Set a spending limit before arriving at the auction and stick to it. This threshold will help you avoid burning money.
3. Get there early. This allows you time to inspect the cars to make sure you know what you're getting into before buying. Just because a car says it has air conditioning does not mean it works.
4. Do NOT drink alcohol, as it will only cloud your judgment. If an auction provides alcohol and you'd like a drink, wait until after the sale.
5. If you're new to auctions, start buying small. Try taking a small amount of money to an estate sale to familiarize yourself with the bidding process and flow of an auction.
6. Bid slowly and pay close attention to the auctioneer so the excitement of the moment does not get the best of you, or you could end up bidding against yourself.
7. Never bid on the first offer. The auctioneer usually starts off at a higher price than a buyer is willing to take. A lot of buyers set a reserve price, or the lowest amount they're willing to accept for a car, and you just might get lucky on the lower end.
8. Keep your emotions in check and never run up on something. If you have not researched or inspected a car before it goes up on the block, do not buy it.
—By CNBC's Jeanine Ibrahim
Tune in to the new season of "The Car Chasers" on CNBC Prime, all new episodes Tuesdays at 10 p.m. ET/PT.