The listing stated the manual transmission diesel ute with 278,989km on the odometer was damaged with "bullet holes and contaminated interior".
There were 27 photos that were also removed, but people who saw the images said the contaminated interior looked like "there's blood everywhere".
A link to the auction was posted on online blog Reddit, with many seeing the post before it was taken down. Some users said they could see the markers used by forensic scientists to trace bullet trajectories, a beer box and a wallet.
A relative said Mr Teddy was surprised to see his vehicle listed online and had joked with friends about buying it back.
According to a cached version of the original post, the vehicle was meant to be auctioned on Tuesday but Turners would not comment further.
"It is being sold on behalf of an insurance company," said chief executive Todd Hunter.
"It will be a vehicle sold directly to a dismantler for parts only and was listed in error on our website which is why it has subsequently been taken down."
Bay of Plenty Police Detective Sergeant Richard Lang said the ute was returned to the insurer at the end of the police investigation.