What is a car “Dealer Auction” and how can you get access to one?

What is a car “Dealer Auction” and how can you get access to one?

Generally speaking, the ways that you can buy a new car are relatively limited: You go to a dealership or check out any number of websites. However, there are more ways than that. One such example is a Dealer Auction. What is a Dealer Auction? A Dealer Auction is a special type of auction in

Generally speaking, the ways that you can buy a new car are relatively limited: You go to a dealership or check out any number of websites. However, there are more ways than that. One such example is a Dealer Auction.

What is a Dealer Auction?

A Dealer Auction is a special type of auction in which cars are auctioned off. The audience is usually restricted to car dealerships. Cars are sold off at this auction, with dealers usually able to make the purchase at lower prices than would be available otherwise. Dealers will usually then prep a car and resell it at a higher price.

Generally speaking, cars auctioned off at dealer auctions have some sort of special circumstance that makes them different than a normal car used by a regular driver. This includes rental cars that are no longer desirable, repossessed cars, salvage vehicles, or cars whose owners have died.

Participation in this type of auction comes with many benefits. The cars are usually cheaper, as you are cutting out a dealership and the price markups that they typically carry. The cars may also be in better shape than another used lot, as they are often well-maintained, if not a bit older. Furthermore, dealers will usually not want to bid above a certain amount, as doing so would cut into their profit margin. However, you will not have any such concern, aside from getting a car at the best deal possible. As such, you may be able to outbid them. 

How can you find and participate in a Dealer Auction?

This one is a little bit harder. Generally speaking, most Dealer Auction’s require that you actually be a car dealership to participate. This limits the number of people who can participate in an auction and may make it hard for you to participate.

However, it’s not impossible for you to still gain access to the benefits that a Dealer Auction offers. For example, it is often relatively easy to sell your car at a dealer auction. This enables you to sell your car quickly and often skip a variety of the steps involved with turning your car into a dealer for a trade-in. Depending on your personal situation, this may be a more profitable move for you. 

Furthermore, you may be able to work with a dealer to find a car that you want and purchase it through them. This obviously requires some extra logistical steps and a friendly dealership that will work on your behalf, but if you can make the relationship work, it can be profitable for you, as it may allow you to purchase a car at an extensive discount than what you would normally get. You may also be able to find such a set-up via a broker.

Daniel Hughes
Daniel Hughes
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