Did your parents or grandparents ever warn you that “if something seems too good to be true, it probably is“? This is very logical and sound advice, but it isn’t always entirely true. Take the issue of a real deal – auto dealer auction. At first glance, it seems too good to be true. Attendees go to a site (real or online) and find hundreds of thousands of cars and trucks available with reviews.
The prices in the auto dealer auction are literally at bargain basement, base line levels in compare with car dealership. Many vehicles are just off leases, traded in or entirely new, and of course there are also those at the opposite end of the spectrum and salvage only. Yet, what holds true is that these items can be acquired for the lowest possible prices.
Dealers bidding in any auto dealer auction are also going to be fairly conservative about bidding because they all want to be able to get the highest profits off the sale. They don’t get into the competitive side of things, and instead bid only to an amount that does not take too much of a dent out of their potential profits.
This sounds like a great opportunity, doesn’t it? It sounds a bit too good to be true for the average consumer, right? That’s because it is too good to be true for consumers. An auto dealer auction is limited only to those who have made the investment in a dealer’s license and who operate as licensed auto dealers.
Before you get upset and wonder just why we pointed out all of the benefits of an auto dealer auction to someone who cannot purchase from such an auction (i.e. you), know that there is a workaround that will allow you access to certain dealer auctions. This is found through the services of third-party or proxy firms. They have the required dealer’s license but their bidding is not to take the inventory for themselves. Instead, it is at your prompting and their goal is to get that car for you, and for the best price possible.
How does it work? If you have ever used any sort of online auction site, such as eBay, you know that you can look at all of the current listings. You see the details, review, photos and all other relevant information there. If the item is what you want to buy, you can input your maximum bid and hope to win.
This is how proxy bidding works in an auto dealer auction site too. You create an account, let them know what car or truck you want, and give them the maximum bid you would pay. They then step up and do that bidding. If you win, they handle most of the paperwork, and the best sites even have shipping services available.
While all of the due diligence on any particular vehicle is up to you (such as checking the VIN report, understanding the title status, and knowing if the vehicle needs a lot of repairs), the actual bidding and snagging of an amazing deal can be legally done when you work with these third party sites.
See our Vehicle Auctions, Car Auctions and Education Centre.