online auctions sign

How Do Online Auctions Work and How Can I Benefit?

By Mike Richards Updated: 12/11/2017 Posted: 10/21/2015

Online car auctions have their own specific set of advantages and disadvantages when compared to auctions that you would normally attend in the “real” world.

Here we will be discussing how online car auctions work and how you can benefit from choosing an online auction over an in-person auction.

Online Auctions Are Less Stressful

The process of bidding on vehicles can be stressful. Car auctions typically take place in large venues such as purpose-built garages and warehouses. These auctions usually operate multiple lanes at once, filling an auction site with noise, exhaust smoke, and a crowd of people.

It can be challenging to keep your attention focused on just one auctioneer, and all the noise and confusion can easily become overwhelming for even the most well-seasoned auction attendees.

Buying at an online auction website is a very different experience. Users do not need to travel to a specific location, and can place their bids from the comfort of their own home. Also, you will be spared all the confusion that is part of an in-person auction.

This doesn’t mean that there is no stress at all when bidding at an online auction. But this is a much less stressful experience than visiting an auction in person.

Online Auctions have Fewer Bars to Entry

It’s also easier to participate in an online auction in some specific instances. One of these is in the case of auctions that aren’t open to the public.

Most of these auctions are for new cars intended for dealers – often just called “dealer auctions” because you need a dealer’s license in order to enter. You can’t get into a dealer auction physically if you don’t have this license unless you’re accompanying a dealer yourself, but this isn’t something that you have to worry about when it comes to an online dealer auction.

This is because there are several online dealer auction companies that provide specific services to non-dealers. These companies will allow non-dealers to browse through the inventory of certain dealer auctions and even place bids on vehicles by acting as their proxy.

As these companies have their own dealer licenses, they can bid on your behalf. All you do is pay them and they’ll use your money to get your new vehicle. They’ll often even ship your car to you for a nominal fee if it’s inconvenient or impossible for you to pick it up yourself. In fact, many of these companies even ship cars overseas, provided you pay for fees like import duty taxes.

Of course, these delivery fees will increase your overall cost if you do end up winning a bid through an online dealer auction proxy. At the same time, the reduced cost of dealer auction vehicles, which are priced specifically to appeal to dealers who will then mark up the vehicles to turn a profit, means that you’re still spending less than you would have if you purchased the vehicle directly from a dealer.

Explore our Vehicle Auctions, as well as finding more information about How These Auctions Work.