How to Buy Cars at Dealer Auctions
Dealer auctions are different from public auto auctions since the general public is not allowed to participate. Only licensed dealers may bid on a car at a dealer auction. Many dealers buy some of their fleet from auctions as a way to save money. Dealers also bring vehicles to an auction that they have been unable to sell to the general public.
- Obtain a list of the cars that are coming up for sale at the next dealer auction. Highlight the vehicles you want to bid on, then check the value of the cars. Use an online pricing guide to find the value of the cars you want to buy, or a pocket-sized pricing book if you have a subscription. Keep the car valuations with you when you attend the auction.
- Set a maximum amount that you will pay for each car. Do not exceed the maximum amount if other dealers start a bidding war over the vehicle. Wait for the next car to come up on the auction block and try to buy it for less than your maximum price.
- Arrive at the auction early so you can inspect the cars you want to buy. Show the auction manager your dealer license and find out the location of the cars you want to inspect. Inspect each car to see if there is any reason you should not bid for the vehicle.
- Observe the dealer auction until one of the cars you want to bid on comes onto the block. Pay attention to the dealers that are aggressively bidding for cars. Once a car is up that you want to bid on, keep your composure and calmly bid on the vehicle. If you are the high bidder, go to the auction desk and pay for the car.
- Return to the auction and wait for the next car you want to bid on to come onto the block. After the auction ends, arrange to take delivery of the vehicles you purchase. Make sure to fill out the title paperwork to transfer ownership of the vehicles to your company.