The Used Car
Dealer Auctions
For someone who
has the desire to make a lot of money on a part-time basis (1
to 2 days a week), or SAVE A FORTUNE on their next car, the
Dealer Auctions are a must for you. Plus, it will save you
hours of time. Not only do you have a huge selection of cars
5,000+ cars to choose from each week, it will save you many
hours of searching through the want ads, making phone calls,
waiting to hear back from the sellers, driving all over town
to look at one car that wasn't what was described to you over
the phone. REMEMBER, Time is money!
What To Expect Inside A
Dealer Auction
You can expect to see a
huge car lot housing over 5,000 vehicles from old cars to new
2006 factory demos with under 1000 miles on them; a
building/office with 10 to 20 garage doors or auction lanes
where they drive the cars through referred to as "the
block". Each auction lane has a specific purpose. Lane 1
might be this current year’s models (dealer auctions have
many new cars for sale with less than 1,000 miles and factory
warranties); Lane 2 might be 1993 to 1995 cars; Lane 3 might
be 1990 to 1992 cars and so on. Other auctions have a special
lane for motorcycles, personal watercraft, and imports such as
a Honda only lane. Some cars are sold "as-is" and
some are sold on a "ride and drive" basis
(power-train warranty). If the car you buy has a factory
warranty it will still be valid or transferable.
As in any "used" goods market, there are good cars
and there are those that you want to avoid. In order to have a
better handle on the inventory, it is wise to arrive at the
auction at least 2 hours before it begins and walk the lot.
Find the car that you are interested in, inspect it and drive
it around the lot.
The Advantages Of
A Dealer Auction
Titles are guaranteed at
the Dealer Auctions. If you have bought a used vehicle with a
previous salvage title or a lien you will understand the
importance of a guaranteed title.
The advantage of buying a vehicle with a guaranteed title is
that if there is a problem with the vehicle after you purchase
it, you are entitled not only to a full refund, but for any
out-of-pocket expenses you incur to recondition it. Dealer
Auctions also offer the security of knowing that the car is
not stolen and that, if need be, you can trace the history of
previous owners. Private party sales do not offer this.
Dealer Auctions have many safeguards about mileage disclosure,
mileage deficiencies, liens, frame damage and other important
details. It’s like getting title insurance on a house,
however, the dealer auctions offer this service for free. Most
dealer auctions will provide a powertrain guarantee of some
kind so you can buy your cars worry free.
Where Do The Cars Come
From?
Leased Cars:
Since most individuals who lease cars do
not buy them at the end of their lease, the leasing company
then sells them at the dealer auctions, most off lease cars or
2 to 4 years old.
Repossessed Cars: Bank or finance companies that have
repossessed vehicles for non-payment. GMAC and GE Finance
Company are huge sellers of good, clean repossessed cars.
Factory Demos: General Motors sells thousands of new
factory demo cars with under1,000 miles on them.
Theft Recovered & Damaged Cars: Insurance companies
sell many cars that have been recovered after the loss has
been paid on them. They also sell hail-damaged cars. We had a
big hailstorm and I bought all the hail-damaged cars I could
find and had my buddy, who does paintless dent removal, take
out the hail dents. He charged me $500 a car and I made a
fortune! Many of those cars were brand new.
Left Over Dealer Inventory: If a dealer has had a car
on his lot for over 90 days, its considered "old
inventory." The dealer will then sell it at the dealer
auction to get his money back in order to place new inventory
on his lot. A BMW dealership may take a Camaro on trade, but
they will not put it on their used car lot; they will
immediately sell it at the dealer auction.
"There
are many places to find cars to buy. It’s a
good idea to specialize in a just a few of these
sources, so that you learn to spot the bargains. Of
course, the dealer only wholesale auction’s have
always been the #1 favorite of mine."
