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How You Can Buy a Used Car and Save Money in a Dealer Auction

By Mike Richards Updated: 05/22/2019 Posted: 08/03/2017

Buying a vehicle of any stripe, even a used one, is always an expensive proposition. That’s why auto buyers try to use every tool at their disposal to get the best deal possible.

In recent years, there’s one tool that’s become used more and more by auto buyers: dealer auctions. If you’re unfamiliar with these auctions and how they can help you to save thousands, we’ll explain below. In the end, you’ll see why countless auto buyers are now using these auctions to buy cars rather than going to dealerships.

I Thought Dealer Auctions Were Closed to the Public?

You’ve likely heard about dealer auctions before. They take place across the country each and every day, with numerous cars being auctioned off at a time. If you have heard of these auctions, then you likely believe that they’re closed to the public… For the most part.

It’s definitely true that the vast majority of car auctions across the country aren’t open to the public. But, online dealer auto auctions have changed all of this! Websites that provide this service allow their users to take advantage of the website’s dealer’s license. Because of this, these users are now able to enjoy the same level of selection and savings as dealers have long enjoyed.

Signing Up for Online Dealer Auto Auctions

Online dealer auto auctions work much the same way as a site like EBay. In order to get started with your search, you merely need to create an account. To create this account, you’ll only need to provide very basic information about yourself.

Things are a little different, though, when you decide you want to start bidding. Online dealer auto auctions require that you make a deposit in order to establish your buying power. Typically, the size of your deposit will equate to 10% of whatever your maximum bid (and purchase) can be. For example, if you deposit $400, then you can bid up to $4,000 on used, salvage and like-new cars!

Things to Know in Order to Save the Most Money

Buying a used car in a dealer auction is obviously much different than going to a dealership. These difference, though, are what make these online auctions so much better! You get an incredible degree of choice, with thousands of cars to choose from each of which can be bid upon from the comfort of your own home.

But, in order to get the most out of online dealer auctions, you need to know how to save the most money. To help with this, you’ll have access to an auction specialist. This person can help you with everything from your search to setting a bidding strategy.

Overall, though, your biggest assets for saving the most money will be preparation and research. Be sure to get a handle on auto prices, and also thoroughly research the history of any vehicle upon which you intend to bid. By doing these things, you’ll discover why online dealer auctions are the best way to save money on used and salvage cars.