Reasons Dealers Use a Car Dealer Auction… and Why You Should Too

By Mike Richards Updated: 05/23/2019 Posted: 09/12/2017

Car dealers are often affiliated with a brand, but there are also enormous dealerships selling multiple brands as well as used vehicles of all kinds. We’ve all seen those vast auto malls and “miracle miles” lined with lots just packed with cars. Clearly, those dealers understand that there are profits to be enjoyed from each item on the lot. So, you look at those enormous inventories and imagine there is a deal in there for you to discover. Yet, is there? After all, if you can go to the very same car dealer auction that those lot owners attend, wouldn’t you get the best deal possible?

The answer, in a word, is “yes”. The trick is knowing how to get yourself into a car dealer auction. After all, they are restricted places that are usually open only to licensed dealers. You may have seen public auctions, but they are entirely different from a traditional car dealer auction. The latter is a place where dealerships can “rotate excess inventory” and where you can find such treasures as recently traded vehicles, just “off lease” cars and even new or used cars in near prime condition. In fact, it is not all that odd to find some vehicles in a car dealer auction with existing warranty still in effect.

Obviously, this makes buying from such an auction a major no brainer, but there is still that need for a license. Fortunately, certain licensed dealers have started to offer you a way to work around this limitation. Online auto auction sites are able tolist vehicles from certain dealer-only auction houses so that you get access to this inventory at great pricesThey do the bidding and closing paperwork, but you are the one who pays for the car and the transportation.

How It Works

While we have already considered a few reasons to use a car dealer auction (best prices, enormous inventories, and premium access), they are not the only reasons. There is also the amazing ease with which it can now be done. In fact, you could feasibly purchase your next vehicle, dream car, commuter vehicle or any other sort of car or truck from the comfort of your home. You need never step outside to make the deal because reputable websites do almost all the legwork for you.

You go to their site, setup your account and begin looking at the inventory. Fine-tuned search engines let you look for certain years, makes, models and even conditions. You browse the current selection, and if a vehicle seems to be a good fit, you need only make a deposit and talk to your personal agent about bidding.

They do the rest. You can watch the pricing in real time and learn right away if you have been able to get a car for the same price a dealer would pay. Even more appealing, and a final reason to get in on this action is that dealers don’t get crazy about competition and drive prices up. They are focused on deals, so you are always sure of a great price at the end of the auction.