The vehicle is similar to the K.I.T.T. car used by his character Michael Knight, but it was not used in television production, according to the auction site. Unfortunately, this version of the car does not talk.
"The sleek, black K.I.T.T. car is fully functional with the brilliantly colorful illuminated dash and console that would be immediately identifiable to Knight Rider fans," according to Diligent Auctions, which is handling the sale.
The current bid for the car is nearly $500,000 (LKR 95 million), exceeding the predicted estimate of $175,000 to $300,000. As an added bonus, if the winning bid is 25% over the reserve price, the 68-year-old actor will personally deliver the car to the new owner.
The auction site notes that it "needs a little TLC to work properly."
The car is part of an auction of memorabilia by Hasselhoff that includes wardrobe, awards, scripts, toys and autographed items from his acting career. The auction ends on January 23.
"Knight Rider" aired on NBC for four seasons from 1982-1986. Hasselhoff was the main character but the car was as much a star of the show as he was.
In the series, K.I.T.T. was a supercomputer-powered car that was voice-activated, autonomous and equipped with advanced surveillance technology that helped it detect nearby obstacles.
K.I.T.T. stood for Knight Industries Two Thousand and helped Hasselhoff's character hunt down criminals for a group called the Foundation for Law and Government. Actor William Daniels was the voice of the car.