Question: Where do auctions get their cars from?

Dealerships and used car lots are the most obvious choices. However, some people prefer to look in the classifieds and buy directly from the seller. Another option that is becoming more popular is to purchase cars at auction. Many people still visit auctions in person.

Where do car auctions come from?

Auction cars come from a variety of sources, including: local car dealers, private sellers, police impounds, bank repos, trade-ins, tow auction cars, among others. These cars often arrive in large numbers, which is why they are sold for low prices.

How cheap do dealers get cars at auctions?

Typically you can expect the average car to be about $1,000 to $2,000 dollars cheaper than retail if you were to buy directly from the dealer auctions.

Where do car dealerships get their cars from?

Used car dealers get their inventory from a number of sources, which include trade-ins, auctions, rental companies, fleets, finance companies, private sellers, ex-demonstrators and pre-registered new vehicles.

Is it safe to buy a car from an auction?

Buying a used vehicle from an auction can be much cheaper than buying from a dealer or a private seller, but its also a much riskier way of buying a used car. You usually wont get a test drive, theres no warranty, and the vehicle could easily have a sketchy past.

Are cars cheaper in auctions?

How much do cars usually cost at an auction and what are the average dealer auction prices? We recently completed a study of the savings a buyer could expect at auction. On average, you will save 20% or more. Thats a savings of $4,000 on a $20,000 vehicle.

How much do dealers mark up auction cars?

The dealers margin varies according to the model, but is thought to range between 7-12 per cent of the list price. So, in theory, this is potentially your maximum discount. In reality of course, youd be lucky to get half of it by way of discount, as the dealer also has to cover his costs and take a profit.

How do you outsmart a car dealer?

Car Buying Tips To Outsmart DealershipsForget Payments, Talk Price. Dealers will try selling you to a payment per month rather than the price of a car. ... Control Your Loan. ... Avoid Advertised Car Deals. ... Dont Feel Pressured. ... Keep Clear Of Add-ons.Nov 8, 2016

How do car dealers get paid?

Most dealerships pay salesmen a paltry base salary of roughly minimum wage. Salesmen then typically earn commissions of 25% of the dealerships gross profit on the car. ... The commission can put an extra $300 to $400 in a salesmans pocket per car sold, and the average salesman sells ten cars per month.

What happens to cars sold at auction?

Many cars that end up at auction, particularly new ones, are cars dealers werent able to sell. After some time on the lot, dealers sell them at auction to move them quickly. ... Banks then sell these cars at auction. There are also ex-lease or rental cars.

Why are cars so cheap at auction?

Vehicles sold at online auto auctions are very cheap compared to those you can buy from dealers. This makes it easier for buyers on a tight budget to purchase the vehicles they need. ... Most of the vehicles sold at auctions usually just have the wear and tear from regular use and in some cases, small scratches and dents.

How much do cars go at auction?

It depends on the type of auction you attend. If you purchase a car at an informal auction, you will find many vehicles with starting prices as low as $300. Typically, nothing sells for much more than $3,500. These cars are sold by individual owners instead of manufacturers.

Do car dealers rip you off?

Most car shoppers focus only on negotiating the price of the car. Thats fine with dealers, because they can easily give you a good price while completely ripping you off on the financing and trade-in. ... The dealer will simply raise the price of the car and screw you on the financing.

What is the average profit margin for used cars?

Used vehicle margins have been stronger than new vehicle margins. That remains to be true. Gross profit margin for the average dealership through the first half of 2021 was 13.4%, up from 11.8% through 1H20.

What a car salesman should not tell?

10 Things You Should Never Say to a Car Salesman“I really love this car” ... “I dont know that much about cars” ... “My trade-in is outside” ... “I dont want to get taken to the cleaners” ... “My credit isnt that good” ... “Im paying cash” ... “I need to buy a car today” ... “I need a monthly payment under $350”More items...•Feb 6, 2018

How do you beat a car salesman at his own game?

Here are 10 tips for matching or beating salesmen at their own game.Learn dealer buzzwords. ... This years car at last years price. ... Working trade-ins and rebates. ... Avoid bogus fees. ... Use precise figures. ... Keep salesmen in the dark on financing. ... Use home-field advantage. ... The monthly payment trap.More items...•Feb 14, 2018

How do car dealerships rip you off?

When dealers sense hesitation, theyll sometimes try to force buyers off the fence by telling them that the deal they offered is only good for that day, or that another buyer is interested in the same car. This is their attempt to force you into an emotion-based decision.

Is It a Bad Sign If a Used Car Was Sold at Auction? Is it a warning sign if a car was sold at an auction? Just because a car was sold at an auction does not mean it is problematic. In fact, the vast majority of used cars move through auctions at least once. Often, dealers will send out inexpensive cars to auctions rather than take up space on their lot that could have been occupied with a more attractive sale.

Sometimes, good cars just sit for a while and rather than continue to pay for that car to be in the inventory, dealers will take their chances with an auction sale. Local markets and vehicle popularity have a lot to do with which cars will sell fast and which cars may move through the auction channels. In fact, many of your manufacturer certified pre-owned cars have been sold at auction at some point in time.

That being said, if you see a car with several auction sales that could be a red flag. I was recently shopping for a used M3 and there was a car in the Maryland area being sold at an independent used car lot that did not seem to be the most legit operation. A well sorted E92 M3 is a desirable car, but one that was beat on is going to have a hard time finding the right buyer.

Where do auctions get their cars from?

It was a Nissan dealership in SoCal. The lease option is not one that my mother in law would be happy with so we opted for the purchase. Although my mother in law is over the moon with the new car, we feel like we got duped by the dealer.

Though not doing so is pretty slimy and I would have taken my business elsewhere. Now my car is being recalled, Volkswagen is offering to buy back the vehicles impacted by this recall. But on the other hand, I feel like there Where do auctions get their cars from? some value in having a car that 1 I enjoy driving and 2 is paid off.

A 2012 Golf R could indeed get problematic in the near future, especially with almost 100,000 miles on it. Is it a warning sign if a car was sold at an auction? Just because a car was sold at an auction does not mean it is problematic. In fact, the vast majority of used cars move through auctions at least once. There are a number of reasons why a dealer would have a car then send it to the auctions.

Often, dealers Where do auctions get their cars from? send out inexpensive cars to auctions rather than take up space on their lot that could have been occupied with a more attractive sale.

Auto auction

Sometimes, good cars just sit for a while and rather than continue to pay for that car to be in the inventory, dealers will take their chances with an auction sale.

Local markets and vehicle popularity have a lot to do with which cars will sell fast and which cars may move through the auction channels. In fact, many of your manufacturer certified pre-owned cars have been sold at auction at some point in time.

That being said, if you see a car with several auction sales that could be a red flag. I was recently shopping for a used M3 and there was a car in the Maryland area being sold at an independent used car lot that did not seem to be the most legit operation. A well sorted E92 M3 is a desirable car, but one that was beat on is going to have a hard time finding the right buyer.

It was a Nissan dealership in SoCal. The lease option is not one that my mother in law would be happy with so we opted for the purchase.

Although my mother in law is over the moon with the new car, we feel like we got duped by the dealer. Though not doing so is pretty slimy and I would have taken my business elsewhere. Even so, most know…Read moreAdvertisementWhat this situation illustrates once again is that you should always have a loan pre-approval lined up before you go to the dealership.

Where do auctions get their cars from?

Now my car is being recalled, Volkswagen is offering to buy back the vehicles impacted by this recall. So I need to decide whether to sell the car back to Volkswagen or not. But on the other hand, I feel like there is some value in having a car that 1 I enjoy driving and 2 is paid off. Do you have any thoughts? A 2012 Golf R could indeed get problematic in the near future, especially with almost 100,000 miles on it.

AdvertisementUnless you really love that car, I would take the buyout and find something else that you enjoy driving. Got a car buying conundrum that you need some assistance with? News, stories, photos, videos and more.

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