Auctions are generally the necessary evil when it comes to putting cars on your lot. Auctions provide basic inspections but if you find something is wrong, you have to act quickly to address the issue. In this video, we discuss auction basics like the difference between in-person and online and which is preferable. Click the video below to get started learning about auctions and the legalities of buying cars through auctions.
Below is a transcript of the video:
Now, we’re going to move on to auction sales, which is how most dealers get their cars. A lot of people don’t know that. A lot of folks that are not in the industry don’t recognize that most of these cars don’t come from trade-ins.
Let’s go ahead and get started with the two main types of auction sales: in-person and online.
Most auctions, I would say at this point, have an online version available of their auction sales.
So dealers don’t have to leave their desks to actually bid on or buy a vehicle at the auction. Be careful, though, because obviously you’d be buying or the dealer would be buying a car pretty much sight unseen save for the disclosures from the seller, six to eight pictures at the auction, and then maybe an MMR or some kind of remarketing score that’s provided by the auction after a very brief inspection.
These things are really hard to rely on. A lot of dealers do rely on them, sometimes to their own detriment, sometimes to their benefit, but it’s not advisable for a dealer to initially begin by purchasing auction vehicles online. For dealers that are new to the game, it’s a mistake to buy cars sight unseen. It’s really for the experts or for buyers. A lot of viewers will have buyers that will do this for them or will at least appear at the auction to inspect a car and take a look at it.
Very experienced dealers that know what to look out for may buy online. Others that aren’t so experienced may also buy online but for the most part, the better move, to begin with, is to buy in-person. Buying in-person will allow the dealer to take a look at the car, really inspect up under the hood, and inspect some things that may not be so readily available at the inspection.
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