Dealers’ car auctions are used car auctions involving cheap cars that are held exclusively for car dealers. These auctions are conducted by various governmental and law enforcement organizations, banks and financial companies, as well as various organizations that aim at making profits by putting their used vehicles on lease.
Why dealers’ car auctions are worth visiting for dealers?
Dealers’ car auctions do not differ much from other types of used car auctions that include local auctions, government auctions or police auctions, other than the fact that the participants are exclusive or registered members. If you are a car dealer, you may get a car even at 10% of the showroom price and then can sell it anywhere between 10% to say, 90% of the price depending on the condition of the vehicle and your prospective buyer. Thereby, they have the access to the best margins, which the used auto world has to offer.
Lack of sources to know on these local auctions
The biggest disadvantage of these auctions is that since they are conducted with the purpose of minimizing losses rather than to have profits, these auctions, whether live or online auctions or both, are poorly advertized. As a result you, as a dealer, need to be at your toes for any information that may come in handy to find the same. It is always good to have a sound network of friends/colleagues, who can help as well as guide you.
Knowing schedule lends a helping hand
On the other hand, having proper knowledge of these auctions is one of the biggest advantages to a car dealer. This is because not many people know about these and as a result, you may get chances to attend many poorly attended auctions, leaving chances for better bids and eventually better margins.
Popular sources for knowing auto auction schedule
Newspapers, magazines, local banks, municipal corporations and close contacts are some of the resources for getting the schedule of auction. However, the web world is counted as the best options of acquiring information on any used car auction and the same holds true for dealers’ car auctions.
You can take the membership of various auction websites and sites that promote, advertize and conduct used car auctions. For a small monthly subscription typically ranging from $35 to $55, you can avail time to time newsletters, informing you of any upcoming auction nearby you.
Why dealers need extra time in hand?
The auction process is not only the auction, bidding and taking possession, but is a bit more than this. You firstly have to know about the auction date beforehand, so that you can prepare for it. Preparation for all used car auctions is the same, still it is a bit more difficult for dealers and hence they need to have extra time than others.
You should grab every opportunity to go and check each all of your information, as there is no knowing which one will be having the car with the best deal available for you that can fetch excellent margin.