If your used automobile lot inventory is on the low side or you just aren't moving vehicles at the rate you'd like to, it's time to consider checking out local automotive auctions to beef up your inventory. Chances are, there is a car auction near your location that has vehicles that won't break your dealership budget or waste your time.
At auto auctions, the more research you put in prior to attending, the better. Quick bidding skills and a knowledge of how much you have to spend are important too. Also, there are typically no lemon laws applicable to purchases made at a car auction. Any research that can be done on the integrity of the auto auction itself is beneficial. When making the most of an auto auction, remember the following:
1. Locate public auto auctions near your location.
2. Research the makes and models of vehicles available.
3. Use the Internet to compare auto auction prices.
Action Steps
The best contacts and resources to help you get it done
Find a public auto auction
Sometimes public auto auctions are advertised in the newspaper, but you can do just as well by using the Internet to locate auctions in your area. If you are having trouble finding a vehicle auction, consider attending a repo car auction or one of a few online car auctions.
I recommend: Visit
Capital Auto Auction to locate public auto auctions on the East Coast. Capital Auto Auction also provides links to view automobiles offered at each auto auction and offers online auto auctions for anyone who is not able to physically attend.
GovAuctions.org offers a selection of seized and repossessed vehicles automobile auctions.
Research the makes and models of cars available before attending the auction
Since you have to be on your toes at an auction paying attention to both prices and bidding wars, you need to know what vehicles are of interest to you and which ones will fit the budget and needs of your used automobile lot and it's customers. It pays off to spend some pre-auction time researching what each auto auction offers in the lines of cars, vans, trucks and SUVs.
I recommend: For auction attendees in the Southeast,
Verastar offers a search feature that lets you see all the vehicles available at their auctions to search for a specific type of vehicle. If you live in the Northeast, the
New York Auto Auction gives you a complete inventory of all vehicles up for auction.
Compare auto auction prices to reputable car price guides
When you attend an auto auction, you can expect the prices to be lower than what you would see either at your own used automobile lot or at a competitor's lot. The only way to know for sure that the price is low enough to be considered a good deal is to do your research and compare the prices at the automobile auction to those found in a reputable used car price guide. If the price is too high, you may not be able to turn a profit on it when you go to sell it on your lot.
I recommend: Use
Kelley Blue Book to compare the prices at the automobile auction with the book value of the automobile. Kelley Blue Books can be purchased to take with you to the auction or you can use the Internet site prior to attending.
NADA Guides also offers used car pricing and book values for use in comparison to auto auction prices.
Tips & Tactics
Helpful advice for making the most of this Guide
- On the day of the auto auction, make sure you have a valid driver's license with you.
- If there is a car that you intend to purchase, be sure to have the deposit amount in the approved payment form.
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