| A dealer auto auction is an auction primarily used by | | | | price and often losses for the car dealer and his or her |
| car dealers, as they are generally closed to the public, | | | | dealership. |
| however in rare cases the public do have access to | | | | The cars purchased from a dealer auto auction are of |
| some dealer auctions which is not widely known nor is | | | | good quality for far below cost prices, sometimes |
| it publicized, I will talk more about this later. | | | | there is a price difference of over 50%, this is great |
| Firstly what is a dealer auto auction? Potential bidders | | | | news for the car buying public because buyer now |
| are normally car dealers who are required to show | | | | has more room to haggle with the dealer which |
| their business identification or text number prior to | | | | increases the chances of larger discounts on the |
| registering as a bidder at the auction. Bidders cannot | | | | purchase price. In addition, as the dealer did not pay a |
| just walk in off the street nor do they have access to | | | | premium price for the car if it doesn't sell in a |
| the dealer auto auction, instead however they must | | | | reasonable time period the price can be lowered |
| show tangible proof that they themselves own and or | | | | without impacting on the bottom line of the dealership, |
| work for a car dealership. Unless they provide this | | | | generally large profits are still acquired even with the |
| information as proof they will be promptly escorted | | | | price reduced. |
| from the auction site. This precaution helps to keep the | | | | Even though these auctions are not open to the |
| dealer auto auction only for car dealers, the stocking | | | | general public they are a very helpful to getting big |
| of their dealerships and closed to the general public. | | | | discounts on your car and in helping dealerships make |
| The public is normally not aware of these dealer | | | | their money. I mean think about it, car dealership |
| auctions and thus have no idea just how cheaply car | | | | owners do have to pay for some fairly elaborate |
| dealerships are acquiring their stock of vehicles. The | | | | business expenses, it is only fair that they make some |
| dealer auto auction is a place that is just for car | | | | decent money to cover overheads right? Overall a |
| dealers and one of the ways for a dealership to | | | | dealer auto auction is a win for all parties. The cheaper |
| maximize it's profits by purchasing a vehicle at far | | | | the dealer can obtain the car the more room they |
| lower than normal trade or trade-in cost. Car | | | | have to move on price. |
| Manufacturers usually charge the dealership large | | | | In some rare cases a dealer auto auction can be |
| amounts of money to buy direct from themselves, | | | | accessed by the public. These car auctions are not |
| which in turn increases the end user purchase price. | | | | publicized nor are they advertised in any way and the |
| When car dealers only purchase from the | | | | information on their whereabouts is not easily |
| manufacturer it means little to no movement on sale | | | | accessed but can be found if you dig deep enough. |