New cars can be very expensive – especially if you are unable to get a good deal with your car salesperson. On the other side of the coin, used cars are often priced much more reasonably – yet you may be taking a risk on the quality of the car you’re buying.
Wouldn’t it be great if you could buy brand-new, pristine, and high-quality vehicles at the same prices that would be more common on a used car lot? This might seem unrealistic, but it can actually be done.
The Online Car Auction
You can buy or sell almost anything and everything over the Internet, including cars. There are a number of car auction websites that make it easy for users to bid on and buy vehicles at prices that are quite attractive.
Online car auctions are an outgrowth of the long-standing tradition of in-person car auctions. These events, usually held at massive venues that can accommodate not just large crowds but rows upon rows of cars, have always been known as great places to get a good deal on a new car or truck. With the Internet growing into such a commercial powerhouse, it wasn’t long before car auction showrunners brought their activity online to reach even larger audiences.
Finding New Cars at Online Dealer Auctions
Of course, not all online car auctions are created equal. Most people not in the automotive industry are familiar with the idea of used car auctions, where any number and type of vehicles in various states of disrepair are offloaded as quickly as possible before they depreciate even more.
These types of auctions are open to the public, but there’s another type of auction – both online and in person – that offers new cars at cut-rate prices almost exclusively. These auctions are private, and they’re only open to individuals and companies that maintain a dealer’s license.
Normally, you had to know someone to get into a dealer’s auction by having them vouch for you at the gate. This made these sorts of auctions completely off limits to anyone who didn’t have the owner of a car dealership in the family or something similar.
However, online dealer auctions are much different. While you’re still going to need to have a dealer’s license to get in, there are companies that have their own dealer licenses that act as third-party bidders.
Such “proxy bidders” charge you a modest fee for the use of their dealer license and then provide you access to the inventory of certain online dealer auctions. If you find a car you want to bid on, you authorize the proxy bidder to try to pick up the car at auction with the money you provide.
So just how much can you save by buying a new car at auction? That depends on individual circumstances. These online dealer auctions typically list new cars at wholesale, or at least start bidding within the 40 percent to 60 percent off MRSP wholesale range.
Even after you factor in the small fee you pay to the proxy bidder as well as transportation and shipping costs, you may still be looking at a very impressive amount of savings on a brand-new car.