A car could go to auction for various reasons. A lot of times, cars that are traded in to dealers are auctioned off if the dealer doesn't want it in inventory. So, it doesn't necessarily mean anything if its been to auction.
There are different types of auctions. Police, bank, and dealer auctions are the ones that come to mind right now.
I believe that police auctions are primarily police and impounded vehicles, bank auctions I think are like re-poed stuff. Dealer auctions are mainly open only to dealers. It's like a clearinghouse for used cars. Retired rental cars, end-of-lease cars, cars that have been traded in; stuff like that.
That's why it doesn't really mean anything as far as vehicle condition is concerned if a car's been to auction.
ya, my car is in perfect condition, so, it might be just a bank or dealer... cause i heard a little bit of story about this LS from previous owner: the first owner had a restaurant, then it went out of business... something like that, so i am guessing that might be bank auction or dealer...