If you’ve got an auto dealer license and an eye for good deals, then you are probably itching to get started at your first auto dealer auction. But don’t get carried away just yet. Here are five very common pitfalls that could cost you a lot of money if you aren’t careful.
Problems are easy to hide.
Sellers are at auto dealer auctions for one reason only: to sell. They may be trustworthy, but that doesn’t mean they aren’t going to present every car in the best possible light. And the biggest problem is that they may not even be aware of all the issues the car could have. It’s easy for any owner or mechanic who has had the car to mask weird noises, shine up a dented area till it barely shows, turn back the odometer, and more. That’s why you absolutely must know the car you plan to buy inside and out – if you aren’t familiar with that make and model, you may not want to risk it unless you are 100% positive you have the budget to repair any “surprises”.
The car isn’t your only expense.
Don’t forget that there is usually an auto dealer auction premium to pay on top of your bid, and that you’ll need to pay for shipping if the car is one of many that you bought, or if its coming from out of state or an online auction. Be sure to factor these costs into your budget, or you may find that what you thought was a frugal afternoon really wasn’t.
Look out for other used car dealers selling at auto dealer auctions.
Used car dealers sell to customers first and foremost because that’s where the most money is. If they are truly desperate, they’ll sell a car to another dealer just to get rid of it and refresh their lot. Their last resort is the auto dealer auction, and that generally means that the car just isn’t what the market in the area is looking for (or it’s a real dud)! Want to find the best seller for quality cars? Try the cars being sold by banks. Repossessed cars at auto dealer auctions are usually excellent deals.
The hype is hard to ignore.
Auto dealer auctions get energetic to say the least. Cars sell in minutes, and competitive natures are out in full force. It is very easy for new buyers to feel pressured to buy something, anything, and end up making a bad decision. Don’t be afraid to let your first auction be a teaching experience instead.
Physical auctions aren’t your only choice!
While everyone pictures physical auto dealer auctions first, online auctions are more popular every day, and avoid some of these common problems – especially number four. Keep yourself cool and collected as you easily shop online for wholesale used cars.
Explore our Vehicle Auctions, as well as finding more information about How These Auctions Work.