A guide to online car auctions for used car dealers

Car auctions offer a valuable opportunity for professional used car dealers involved in importing vehicles. It allows them to diversify their inventory, find quality vehicles at competitive prices, and boost their profits. Whether it's a physical auction house or an online platform, buying vehicles through auctions requires strategic bidding and careful evaluation. In this guide, we will explore the ins and outs of online car auctions, providing essential tips and advice to help make informed decisions for your car dealership business.

What are auctions?

Online car auctions are a form of car sales, generally taking place inside platforms where buyers and sellers come together. These auctions are popular among dealers and private buyers as it gives them access to multiple models in one place.

On our online car auction platform MotorTrade, you will find three types of auctions: open auctions, blind auctions and buy now. Open auctions allow you to see the last bid placed on a vehicle. Blind auctions on the other hand, don’t disclose this information. You have to place your bid according to the price you are ready to pay for the vehicle. Buy now auctions are direct sales. It means that the price is fixed and the first person to bid will get the vehicle. It is an easy way to replenish stock when needed. To learn more about our different auctions types, read our dedicated blog article on the subject.

Understanding online car auctions

Online car auctions offer several benefits to used car dealers. They provide convenience, allowing them to browse and bid on vehicles from anywhere with an internet connection, at any time. They also offer a wide selection of vehicles, including a range of makes, models, and years, and competitive pricing. Additionally, online car auctions provide transparency, with detailed information about each vehicle, including its history when available, condition, and any damage. Overall, online car auctions can be a convenient, efficient, and cost-effective way to buy or sell a vehicle, with benefits including fast payment, reduced costs, and competitive pricing.

One disadvantage of online car auctions is the lack of physical inspection opportunity, which can be a challenge for accurate evaluations. Without being able to physically inspect the vehicle, dealers must bid based on the information provided and are responsible for checking all information. That is why we try to be as precise as possible by publishing vehicles with many pictures of the damage (when there are any), the vehicle’s history when available and State of Health Certificates for electrified vehicles.

Participating in online car auctions

Participating in online car auctions requires preparation and research to make successful bids and secure the best deals. To do so, it's essential to set clear budgets and strategies, knowing your financial limits to avoid overbidding and stay focused on vehicles that align with your business goals. This involves determining how much you are willing to spend on a particular vehicle and sticking to that budget. It's also important to conduct thorough research to understand the market value, condition, and history of the vehicles you plan to bid on. This can be done by using online resources, vehicle history reports, and expert advice.

You will also often need to register to platforms beforehand go be able to bid on the vehicles. Register at Arval Trading to get access to our MotorTrade platform with more than 400 000  vehicles yearly.

Once you are registered, you can begin bidding on vehicles. It's essential to employ effective bidding strategies, to stay disciplined and avoiding impulsive bids that can inflate prices.

Winning the auction and post-auction process

Congratulations on winning a bid! Now, it's time to finalize the purchase and prepare for post-auction procedures.

Additionally, it's crucial to review and understand the terms and conditions of the sale, including any warranties or guarantees that may be included. By carefully reviewing the documentation and ensuring that all necessary steps are taken, you can ensure a successful and stress-free post-auction process.

By being proactive and thorough in the post-auction process, you can minimize the risk of disputes or problems and ensure a smooth transition of ownership.

What you will find on MotorTrade

On our online car auction platform MotorTrade, you can browse and bid on vehicles from all over Europe, increasing your chances of finding the right cars for your inventory. Additionally, online car auctions offer a time-efficient and flexible bidding process, allowing you to participate in auctions at your own pace. Furthermore, detailed vehicle information is available online, enabling you to make informed decisions about the vehicles you are interested in bidding on.

With Arval Trading, you will have also access to a range of services like our transport solution that will allow you to receive your vehicles directly at your premises. This will save you precious time. Thanks to its Authorized Economic Operator status, Arval Trading will manage internally customs procedures for you.

Lastly, in case of mismatch between description and reality when the vehicle is delivered, the client receives a compensation through our claim management service.

Conclusion

Navigating the world of car auctions requires a combination of knowledge, strategy, and caution. By understanding the different types of auctions, preparing thoroughly, and making informed decisions during evaluations and bidding, used car dealers can enhance their vehicle inventory and thrive in the competitive automotive market. With the right approach, car auctions can be a powerful tool for building a thriving and profitable used car dealership.