SEATTLE -- We ve all seen them or at least seen an ad for one. Penny Auctions are supposedly a place where you can get an iPad for $33 and bid on other items. The most common question I m asked: Are they a ways to save? And my answer is absolutely not!
If you re unfamiliar with the concept of a penny auction, they re basically a form of gambling online. Unsuspecting shoppers are required to buy packs of bids ranging anywhere from $5 to well over $500 where you bid on different products without any guarantee of getting that item.
Your statistical odds of owning an item seen in a Penny Auction are often low, no matter how much money you spend on those bid packs. While some Penny Auctions are fully legitimate companies, others are not and like Real Penny Auctions out of Florida have an F-rating with the Better Business Bureau. That means not only are these places an average shopper would want to avoid, but spots where the average person would not even want to gamble.
Again this is purely my opinion as a bargain hunter but over the years I have not had any luck with Penny Auction sites as a form of savings.
Want actual money-saving sites and great deals? Follow @MattGranite on Twitter.