An elderly Massachusetts auction employee killed three people and hospitalised nine after "screeching" his SUV through a crowded auto auction in what is described as a "tragic accident".

One man and two women were killed in the devastating crash at Lynnway Auto Auctions in Billerica Wednesday morning.

The driver, who is in his 70s, was not hospitalised and was driving a 2006 Jeep Grand Cherokee, according to Daily Mail.

Authorities have not released the names of the deceased victims, but the brother of Leezandra Aponte said his sister was killed in the car auction crash, according to NBC Boston.

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Investigators said that two of the injured victims are in critical condition.

Auction employee Woody Tuttle told WCVB that he heard tires "screeching" when the "Jeep Cherokee went flying by me". Tuttle said he then saw the vehicle strike several people.

Tuttle said the driver "avoided the cars and went on to hit the people who were standing between the cars".

But police don't believe the incident was "intentional".

"At this point, there is no evidence or information to suggest the incident was caused by an intentional or terrorist act," Massachusetts State Police said in a press release.

"All evidence and information at this time suggests an accidental cause," police added.

The crash occurred around 10am at LynnWay Auto Auction in Billerica, about 20 miles northwest of Boston, according to the station.

Multiple people are dead and some are critically injured after being struck by the out-of-control Jeep. Photo/AP
Multiple people are dead and some are critically injured after being struck by the out-of-control Jeep. Photo/AP

Officials said that a few hundred people were inside and outside the building at the time of the crash.

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A disturbing video was released to the public showing three victims lying on the ground immediately after the crash.

In the horrific video, two of the victims were moving, while the third appeared motionless.

First responders can be heard in the background shouting at people to "move" and "back up" as they barricaded the scene.

Cars were lined up on the auction block when the jeep suddenly accelerated and hit people standing inside the auction before crashing into the building, a witness said.

Images from TV helicopters showed a vehicle covered in debris that appears to have crashed through an exterior wall from inside the building.

At least 12 ambulances were called to the scene as medics wheeled people out of the building on gurneys.

Randy Miller, who was attending the auction said it appeared the vehicle was traveling about 40mph.

A Jeep ploughed into a crowd at an auto auction in Massachusetts before crashing through a wall of the building. Photo/AP
A Jeep ploughed into a crowd at an auto auction in Massachusetts before crashing through a wall of the building. Photo/AP

He told WCVB that he and others at the auction "heard a bang or an explosion".

"It was almost like a bomb. The whole place just went silent," Miller said. "There were people just lying on the ground -- a horrific, crazy, tragic situation."

Lahey Hospital and Medical Center says it is treating six injured people, and Lowell General Hospital says it has three others.

Middlesex District Attorney Marian Ryan told NBC that some people have head injuries and there are a number of back, leg and torso injuries".

According to Ryan, the auction was going on at the time of the accident, just like every Wednesday.

She said vehicles, which are only driven by employees, are moved through the building during the day so people can bid on them.

The Jeep Cherokee was inside the auction site and an elderly auction employee was moving it when he lost control and hit a wall.

Lynnway Auto Auction said in a statement on Facebook: "We are very saddened by today's events at the auction. Our thoughts and prayers go out to the individuals and families affected."

Authorities have not released the identity of the driver. Investigators said they don't know yet exactly what caused the driver to accelerate. The investigation by Billerica and State Police is ongoing.

A similar incident occurred two years ago when an SUV driven by a 78-year-old man hurtled through an auto auction in the Boston suburb of Framingham.

The SUV struck other cars, patrons and a cinder block wall. Eight people were injured in that incident, but no charges were filed.