Explore the range of car auctions for used car dealers
Car auctions are an important way of purchase in the used car industry, offering dealers access to a wide range of vehicles at competitive prices. For used car dealers, understanding the various types of car auctions is crucial to maximizing inventory quality, meeting customer demand, and ultimately driving profitability.
Why choose auctions for used vehicles?
As a used car professional, one of the ways you can replenish your stock is by purchasing vehicles through auctions. Indeed, they allow you to find great deals. When those auctions are online, it is even easier as you don’t have to leave your premises and can even benefit from different services such as transportation.
On our online auction platform MotorTrade, you get access to thousands of vehicles each month, coming from 13 different countries within Europe.
The open auctions
Open auctions are a common type of auction. Once it starts, you can view the last bid placed on the vehicle and decide whether to increase the bid or not. You can also fix a maximum limit you want to bid and let the automation bid for you until it reaches this limit. There is no competition, the vehicle will be sold below the maximum price fixed.
For each car available, you have access to a lot of data that will help you establish your best price. This includes: the model, mileage, different options, the number of keys, etc… Every description is complete with multiple pictures and a log of every damage.
At the end of the allotted time, the highest bidder wins the vehicle. Then, the vehicle needs to be paid within five working days.
The blind auctions
In contrast with open auctions, in blind auctions, as the name stands, don’t allow you to see the other bids. This means that each bidder sets directly the price he estimates to be the best one for the vehicle. The strategy in approaching blind auctions is different from open ones as you can’t base you offer on the one of your competitor to place your bid.
You still have access to the vehicle's information with all the pictures and information about damage. At the end of the blind auction, you will know if you won the vehicle or not.
In the meantime, the mixed quality of the vehicles and the unpredictability of participants imply proper knowledge to avoid mistakes. Successful dealers approach blind auctions with a clear strategy, thorough vehicle inspections, and set budgets. Knowledge about the market price of used cars will help dealers buy at the best price.
Buy now purchases
The buy now category allows you to purchase vehicles without having to take part in an auction beforehand.
This method is quicker as you don't have to wait for auctions to end. Replenish your stock in a fast and easy way.
Used cars in buy now are available to everyone at the same time. No competition, no bidding, the first click takes the vehicle.
Sometimes, you can find lists where buy now are coupled with blind auctions. In this case, either you directly purchase the vehicle like any other buy now or you can make an offer below, but the vehicle could be sold at any time to someone else.
A large range of used vehicles available
Our online car auction platform MotorTrade offers many vehicles, ensuring you will find what you are looking for. All vehicles are end-of-lease contracts from Arval, 90% of them were maintained regularly as included in their contract. Rest assured that each used vehicle was inspected before being published on MotorTrade.
Conclusion
Understanding the different types of car auctions is essential for used car dealers looking to enhance their inventory and maximize profitability. Each auction type offers unique advantages and challenges. By familiarizing yourself with the characteristics and best practices of each auction type, you can make informed decisions, minimize risks, and capitalize on opportunities.
Stay informed, stay disciplined, and leverage the diverse opportunities that car auctions offer to build a robust and profitable used car business.
Register today with Arval Trading and start your car auction journey!
