As a dealer you know that the wholesale car auctions are the best places to buy new and used vehicles for further resale. On dealer-only auctions car makers distribute their autos at low prices. Dealers also actively use such platforms for selling their vehicles. The cars are always cheaper there compared to any dealer’s location. In addition, the auction system is open, transparent, reliable, safe and convenient. So it’s profitable to buy vehicles there. What should dealers know about purchasing the cars on the wholesale car auctions?
When buying a car on the auction carefully read its description that indicates the car’s condition, the information about all damages, repaired parts, etc. You can also buy a two-week warranty which guarantees that you will receive the car as described. On the auction you don’t buy a vehicle from a selling dealer, who is usually present there, you pay to the auction itself. It can provide you with the Title, in other words, the document for the car. The Title states that the vehicle is “clean”, has no previous debts to various banks and other financial institutions, that it was not restored after any type of accidents, and was not written-off by the insurance companies. The sale procedure is carried out according to a simple scheme, which slightly reminds of the traffic light system. When a car arrives on the lane, one, two, or three out of 4 colors light up on the display at once. It is provided for dealers’ convenience. It also accelerates the process of selling cars. When there is a large flow of vehicles, the auction sells 2 cars per minute. The colors are green, yellow, red and blue. Each color has its own meaning and a number of conditions, that the seller and the buyer are obliged to observe. Green color means that the car is in a good condition, has no records on damages and was not repaired. As a rule, such cars are more expensive than the ones that are not greened up. Other colors do not mean that the car’s condition is bad. They say that the vehicle was not checked out before the auction if it had arrived just before the start. All the defects, if they are present, are indicated in the Condition Report, e.g. scratches, dents, hail damage, flood damage, etc. All of this is specified in the description and is marked with a corresponding grading.
Here are some tips that will help you easily and comfortably buy vehicles on the wholesale auctions:
- Register with the online car auction as a buyer. The dealer-only auction platforms do not target at common buyers. They require dealer’s license. Thus, if you have it you will get lots of advantages including low prices on vehicles.
- Make a decision about the car, its functions, condition, etc. Try to be flexible and take into account the auction specifics. Do not focus on one variant only.
- Estimate the wholesale and retail values of the car. Use independent sources such as Kelly Blue Book and others.
- Set your budget. A final car cost will include various taxes and fees. So it is necessary to evaluate the ownership cost.
- Make all the necessary researches and arrangements. Each auction has its terms, conditions, schedule and rules. Find the proper information about it in advance. Take care of the correct payment options.
- Do not lose your head. Do not let emotions overwhelm you during the bidding process and make you exceed your budget. Remember the difference between a dealer and a buyer.
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