Tips for professionals on online car auctions

As a used car dealer, attending online car auctions can be a great way to secure high-quality inventory at competitive prices. However, it's essential to be prepared and knowledgeable about the process to make the most of these opportunities.

The advantages of online car auctions

Online car auctions have become an increasingly popular way for used car dealers to purchase inventory. These auctions offer a wide range of benefits.

Indeed, online car auctions are convenient and time-saving way to purchase vehicles as you can participate in the comfort of your own office. Moreover, online car auctions often feature a wide range of vehicles, including models and makes that may not be available in your local market.

Identifying market trends and customer needs

To thrive in the competitive used car market, it's crucial to understand your clients’ needs and the type of vehicles that are sought out in your market. Conduct in-depth research to identify the models, brands and features that are most desired.

Learn about auction procedures

Before diving into car auctions, you should get comfortable with the rules. Indeed, on MotorTrade you can find three main types of auctions: open, blind and buy now. Open auctions allow you to see the latest bid when blind auctions don’t. There are different strategies to put in place, so it is important to be well informed on the topic.

At Arval Trading, we provide you with a toolkit, complete with all the information you should need to manage your auctions smoothly such as a frequently updated sales schedule, tutorials or even information about electric vehicles.

The sales schedule is a great tool to anticipate your auction program and check the different lists available beforehand. 

The importance of inspections and history reports

A disadvantage of online auctions is that you don’t have the possibility to examine the vehicle beforehand. Thus, it is important to properly examine any material at disposition such as pictures, the description and the history report when available. Pay careful attention to details to avoid mistakes.

With our platform MotorTrade, you have access to available vehicle’s details, complete with pictures of the vehicle and a focus on potential damages. It allows you to look in details and decide before bidding which vehicles you are interested in. When possible, we also provide history reports. For EVs, we provide, when possible, a state of health (SoH) certificate to attest the quality of the battery as it is an important component of the vehicle.

Obtaining comprehensive vehicle history reports is a smart move before placing any bids. These reports provide significant information about a vehicle's past, including accidents, title problems, and mileage discrepancies.

Set a budget and stick to It

Auctions can be thrilling, and it's simple to get caught up in the excitement of bidding. However, setting a budget for each vehicle and adhering to it is paramount. Calculate your maximum bid by considering the following factors:

• Research the vehicle's market value
• Estimate potential repair costs by reviewing the vehicle's details provided in its description and history report when available
• Determine your desired profit margin based on your business goals and target pricing.

By sticking to your budget, you can prevent overpaying and ensure that you remain profitable in the long run.

Purchase details and transportation for after-sale

After a successful bid, promptly complete the purchase and ensure all necessary paperwork is in order. This includes the auction paperwork, title transfer, and any additional documentation required for importing vehicles. Being thorough in this process will help you avoid legal and administrative complications down the road.

Coordinate the transportation of your purchased cars to your dealership efficiently. Choose reliable transportation options that safeguard the vehicles' condition during transit. Timely delivery ensures that you can promptly prepare the vehicles for sale and capitalize on market demand. At Arval Trading, we provide a transport solution that allow you to receive your vehicles directly at your premises.

Upon receiving the vehicles, conduct a thorough inspection to verify their condition. Address any issue by writing them down on the CMR before the delivery driver leaves. It is mandatory to do so as it will help prove who’s responsible of eventual damages.

Conclusion

Attending car auctions armed with the right tips and strategies can significantly help professionals importing used vehicles. Auto dealers can make profitable choices at auctions by analyzing the market, planning their budget, and evaluating vehicles. This helps them acquire in-demand vehicles with high resale value and attract customers for substantial profits. Implement these tactics to master the art of car auctions and thrive in the competitive automobile market.