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Auctions Pay for Themselves Over and Over Again

In a world where the “middle man” is increasingly cut out of most product markets, auto auctions continue to thrive by providing a wealth of value and cost-saving services that simply cannot be easily duplicated by their competitors.


In a world where the “middle man” is increasingly cut out of most product markets, auto auctions continue to thrive by providing a wealth of value and cost-saving services that simply cannot be easily duplicated by their competitors. While auto auctions are finding increased competition in their effort to provide car dealers with inventory, many alternatives are proving short-lived and less profitable for car dealers. In short, dealers may flirt occasionally with the young market upstart, but they keep coming back to auto auctions, which provides the complete package for their bottom line. Here’s why:

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Auctions Save You Time and Heartache
Auctions work hard to provide a seamless and convenient atmosphere for dealers to do business with each other. But because of this, it is easy to overlook many of the services auctions provide their local dealers that save them a lot of time, money and heartaches.

One obvious area is title services. Auctions often have a dozen or more employees on auction days who are working behind the scenes to dot all the i’s on title work. These titles come from various states or even countries. Auction personnel are trained in handling special problematic title issues as well. This provides state and local DMV compliance, as well as audit compliance for dealerships so that issues do not arise later.


Buyer protection plans are also available at most auctions to secure your investment at the time of purchase. A variety of post-sale inspections and/or warranty products give buyers more peace of mind when purchasing from another dealer whom they may or may not know. Of course, the auction provides neutral arbitration guidelines that protect both buyers and sellers by maintaining a general set of marketplace code-of-conduct guidelines that keep the playing field fair.

Auctions Increase Your Bottom Line
Auctions provide a great deal of sales and marketing support for their dealership customers. They may employ outbound and inside sales representatives as well as marketing employees who are all dedicated to maximizing dealer sales. It is in every auction’s best interest for dealerships to buy and sell as often as possible and provide quality product.


Auctions’ dealer services may include online vehicle photos and condition reports, which means more eyes on your units and increased buyer confidence since they know the unit has been pre-inspected by a neutral party. Some auctions also provide special promotions and giveaways, as well as various forms of advertising that are all free to you. Auctions often purchase print and digital ads and promote your branding alongside their own. They also can post your units on social media.

Furthermore, a good auction can provide hundreds of potential buyers for your units. Unlike online marketplaces, buyers at live auctions literally have to walk by your cars and are more apt to take a look under the hood or admire the clean interior. This also helps sellers make more money. With so many potential buyers who are bidding against each other, vehicle prices go much higher and easily offset auction fees.


Auto auctions often employ trained “IF” office professionals who help negotiate pricing between dealers in an effort to keep deals together. This allows dealers to haggle with each other with a neutral third party to aid communication.

Auctions Provide Convenient Add-On Services
Most auctions have mechanical, reconditioning and transportation services available to their dealers. This provides a one-stop shop for preparing your units for sale, or giving them a quick fix-up after purchasing. Auctions also have special partnerships (and perhaps pricing) with PDR, locksmith, paint/body and windshield replacement companies that they can pass along to you. Again, it is in the auction’s best interest to have your cars in pristine condition for the sale so that you are more likely to sell them.


Lately, the Consumer Financial Protection Bureau has been cracking down on the automotive industry. Auctions, because of their involvement in many parts of the industry, have often already become CFPB compliant and add another layer of protection for all of your purchases. This

may include securing or destroying personal documents found in cars from previous owners that can prevent a lawsuit from knocking on your front door.

Auctions Are Fun
Is there anywhere else in the market where you can win cash and prizes or participate in large-scale rock ’n’ roll events or charity golf outings just for buying cars for your car lot? There may also be free food events and fun activities going on that can break up the monotony of doing business.


To conclude, auto auctions are a beneficial tool that helps dealers buy and sell units, as well as secure their financial investments, while having fun in the process. So get to know your auction partners and utilize their resources to put more money in both of your pockets. Scott Whitaker

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