There’s probably plenty you might not know about private dealer auctions. Unlike used car auctions, which are open to the public, new car auctions are often a complete mystery to most people. Here are the biggest secrets when it comes to best buy private auction for dealers.
It’s Not What You Know, it’s Who You Know
There’s a reason private dealer auctions are some of the best-kept secrets around when it comes to finding a brand new car at a fraction of the price that you would pay at your run of the mill dealership: they’re exclusive events that are closed to the public. You can only get in if you’re a member of the auto sales industry, and you have to prove it at the gate. You’ll need to show your dealer’s license when you register for entry for a private dealer auction.
You would think that the normal person not involved in selling vehicles to the public would be out of luck when it comes to getting inside a dealer’s auction and bidding on a super-low cost yet brand new car. However, there’s one loophole that can get you in: you can attend a dealer auction in the company of someone who actually does possess a license.
Most people who end up getting an inside look at these private events ask a friend or a family member who owns an auto body shop that resells rebuilt vehicles or who operates a car dealership themselves if they can attend. If their friend or relative agrees, they’ll even bid on a non-dealer’s behalf – with the non-dealer’s money, of course – on a new car that strikes their fancy.
The Internet Has Changed the Game
Private dealer auctions have been held for decades, and not much has changed since the early days – though there’s one major exception. As the Internet has developed into the major e-commerce platform it is today, private dealer auctions have moved into the digital marketplace to allow remote bidding. It’s a helpful alternative to those too busy to attend an auction in person.
While you still need a dealer’s license to gain access to an online auction of this type, it obviates the need to physically be there to bid on vehicles. It also makes your dealer friend or relative more likely to let you use his or her dealer license to access the venue.
You Don’t Even Need Any Friends
However, the best part about online private dealer auctions is that you don’t even need to know someone with a dealer’s license anymore to gain access. You can use a proxy bidder, a company that will use their own license to enter online bids on your behalf for a nominal fee, to access some of these private dealer auctions.
Using a proxy bidder will slightly increase the effective cost of your vehicle, but with dealer auction cars already so impressively priced, you’re still saving money that you would have spent if you went the traditional route and haggled with a salesman at the car dealership.
This is true even after you take into account transportation costs associated with the delivery of your new vehicle, a service that the majority of proxy bidders offer. Any way you look at it, you really do manage to come out on top of the situation.