HOW TO BUY A CAR AT AUCTION: TIPS THAT HELP DEALERS WIN
Evaluate Your Vehicle Inventory Before Buying
It is essential to evaluate your inventory before signing in online or entering a live auction house. Knowing your market is an important part of learning how to be a successful car dealer. What kinds of vehicles do you have? What are you hoping to purchase? Barters are invigorating and fun, so it’s not difficult to move cleared away and fail to remember your ultimate objective of bringing in cash on your stock and moving vehicles through your showroom rapidly. Have a look at automobilia for sale
Knowing what kind of cars your customers want is essential. It will be beneficial to examine your quarterly or annual sales reports. You’ll find out what your customers are looking for in terms of brand, class, mileage, and price range. Do they purchase brand-new or used automobiles? Are particular years or models popular?
Take into consideration how much more money you make than you spend on all of the cars you sell. Even if you got a great deal on a compact, it won’t matter if customers buy SUVs and trucks. The vehicle eventually loses value and becomes a sunk cost if it remains on your lot. You might decide to buy cars you know you can move and wholesale at a slight loss.
The cars you want to sell at auction are also influenced by your inventory evaluation. You probably accept a variety of cars as trade-ins if you are a retail dealer. Even vehicles that you won’t sell at your dealership might be taken. When a car sits on your lot, fees add up or the car ages, costing you space and money. You might have a variety of cars with a high trade-in value, but you can’t sell them to your market. Classic cars, RVs, and motorcycles are all examples of this. Each of these makes excellent choices for the auction block.
Working with a car spotter, who can streamline the buying process and make sure there are no surprises before an auction, might be beneficial.
You can stay focused by setting priorities before buying a car at an auction. It’s exciting to bid on flashy cars or cars that are in near-perfect condition, but you need to be able to make a profit from selling them.
Research the Run List
You might be wondering what a run-list is if you are new to auctions.
Your preview of all auction vehicles is called a run list. It can incorporate data, for example,
VIN
Vehicle history reports
Damage reports
Title information
Known issues (mechanical or other damage), and even what extras are included like keys or the original manufacturer manual
An internet-based auction will have a comparable run list where you can see the vehicles available to be purchased. Since online closeouts run 24 seven, you can typically see the run show one to two days before the bartering. One of the biggest benefits of online auctions is their filters and tools that are simple to use. Before, during, and even after the auction, you can sort and rank cars on the run list
