Car Dealer Auction
A car dealer auction is a specialized form of auction. Each year during these car dealer auctions millions of cars are sold. In addition, these are events unavailable for the general public, because only those who are interested and have a dealer’s license can be active participants. The main feature of the car dealer auctions is that car prices are lower than those you find in a dealer’s lot.
The majority of the vehicles sold at a car dealer auction are replaced rental fleets, off-lease returns, repossessed cars, trade-ins and company vehicles. The off-lease cars are vehicles returned to a financial institution once the lease contract expires. That’s why these closed auctions are the best place for the financial institutions to dispose of a large number of off-lease returns. In addition, the cars returned are just 2 or 3 years old which means that their original warranty hasn’t expired yet. The repossessed cars can be renowned by the financial institutions voluntary/involuntary for delinquency or for recall. That’s why the car dealer auctions are the best destination the bank can choose for these cars. Because the bank is interested in making up for its losses, the price tags will be set low. Another category is represented by the trade-in vehicles which can even have aftermarket modifications. The only disadvantage of these cars is that they are usually out of warranty and can be considered old.
Other types of vehicles sold at a car dealer auction are the salvage vehicles which were part of an accident, affected by floods or fires or recovered from thefts and were purchased by insurance companies. Later on, the company decides to sell them to dealers, body shops or auto recyclers and recover a part of the money they lost. But these auctions also display quality cars and some of the newest models available on the market.
All these cars are sent to a car dealer auction for a quick and hassle-free sale at a price that will provide a small profit for the dealer. Even if some people think that the cars are sold at unreasonably low prices you should know that’s not completely true. Low prices are paid only when bidders aren’t interested in a car model or the car is completely unattractive. The sellers normally set reserve prices on their stock to make sure they get a fair price. These reserve prices remain unknown for the public and a so called “winning auction bid” is considered a sale only if the reserve price is paid. In addition, the sellers have the option to re-list the cars that remain unsold to a private auction.
Some of these car dealer auctions don’t offer the option of a pre-sale car inspection or of a test drive before the actual bidding takes place. Also, you can’t bring mechanics or guests to see the car before the sale takes place. Others offer you these possibilities and you may be able to discover in advance some of the mechanical problems and decide to not bid for a certain car. A compromise is possible if the sellers have their cars inspected before sale and provide the necessary documents that can make any buyer sure that the car is in a good shape. That may convince more potential buyers to bid and provide a better price for the seller.
Those interested in car dealer auctions can find out when and where these events will take place by checking the local newspaper or by researching online. All you need is a dealer license, a generous budget and some bidding practice.
Post tags: Tags: automotive articles, car dealer auction