Online dealer auctions are becoming a preferred way for many consumers to purchase vehicles. There are a number of reasons for this, not the least of which is the savings. In fact, many consumers who use these online dealer auction sites have found that they’re able to save 70% or even 80% on the purchase price of a vehicle. In total, this often leads to savings that total in the several thousands of dollars.
Beyond this, consumers who use these sites are able to enjoy the convenience of car shopping from their own homes. What’s more is that they’re able to enjoy a selection of vehicles that’s exponentially larger than one would ever find on the lot of a dealership.
With this many vehicles, though, many newcomers to online dealer auctions find themselves wondering where the cars are coming from. As it turns out, there is a wide variety of potential sources.
Dealerships and Unwanted Inventory
Believe it or not, many used car dealerships will actually source their inventories from dealer auctions. Taking things a step further, used car dealerships will often turn toward dealer auctions when it comes time to clear off excess inventory. What does this mean for you? Well, it means that it’s possible to buy a used car in a dealer auction without having to pay the markup that a dealer would impose. That equates to some serious savings!
Governmental Entities and Used Cars
Another primary source of used cars in online dealer auctions is governmental entities. For example, there may be government departments that need to get rid of an old fleet of cars to make way for a new one. Oftentimes, the old cars will end up on the auction block.
In addition to this, police and other law enforcement agencies make use of dealer auctions as well. When cars sit for too long on impound lots, they need to be gotten rid of. Dealer auctions have long proven the most expedient method of doing just that!
Insurance Companies and Salvage Cars
When you check out online dealer auctions, you’re sure to come across a number of salvage cars. These are vehicles that have had their policies paid out by an insurer at a rate of 75% or greater of the car’s value. When this happens, the vehicle is issued a salvage title and then taken into the possession of the insurer.
Naturally, insurers do not want to hang onto these cars, and so they auction them off. Online dealer auctions are an incredible way for one to buy salvage cars from insurance companies!
There’s Even More Out There!
This is just a sampling of the variety of sources of used and salvage cars you’ll find in online dealer auctions. There are others! But, what’s really important is the massive selection and potential for savings. Simply put, if you’re looking to find the car that’s right for your needs and fits well within your budget, online dealer auctions are the way to go!