Cut Out the Middlemen and Get Huge Savings at a Wholesale Car Auction

Buying Direct at a Wholesale Car Auction

You must aim to get big discounts if you are planning to purchase two or more cars, but you can get much bigger discounts by cutting out the middleman and going straight to the source; one of them being a wholesale car auction. Another method is to buy direct from the owners. But this is a bit difficult since you need to have a fairly good list of owners and companies that are selling their vehicles. 

The better option between the two is to visit wholesale auction houses where you can find cars on public sale with incredibly low minimum bid prices. Some of them are valued a lot cheaper than what the middlemen and second-hand car dealers are selling them for. In fact, you shall be bidding with many used car dealers. This alone tells you that you are at the right place and will be getting a good bargain if you win the bidding.

The Challenge of Bidding for Cars at Wholesale Auctions

However, buying auctioned cars is not as easy as you think. This is quite different from buying vehicles at dealers’ showrooms where you can get the cars of your choice. In this case, you may not always get the lot of cars that you want since acquisition of auctioned units will go through a bidding process where there are other bidders competing with you. 

Similarly, you cannot also expect to get the vehicles at your desired prices because the final amount will depend on the outcome of the bidding. If you are facing a veteran bidder, the prices may go up because seasoned bidders are sometimes determined to get the units, especially if they are used auto dealers.

However, you have nothing to worry about when competing with second-hand car dealers. They may be well-experienced in bidding and they also have the money to pay regardless of the price, you still have some remarkable advantages over them. 

First and foremost, you are already the end user, while the dealers will still mark up the price and sell the units. Consequently, they normally have a certain percentage of markup to maintain. If the bid amount is already high and they still have to add their profits to the price of each unit, the total amount may be too high for them to sell.

Thus, these dealers cannot bid on units that are almost at par with the current market value of the automobiles. If their ideal margin is 20%, this also means that they can only bid up to 20% lower than the prevailing market prices of the vehicles to stay competitive. On your part, this is where you save compared to buying a used car at a dealer's showroom.

With these things in mind, you should be more confident when placing a bid on a lot of automobiles with a couple of auto dealers competing with you. You can outsmart them even if you are new to bidding. But more importantly, you can cut the middleman out of your purchase and get bigger savings by buying direct at the source where dealers are buying, which is the wholesale car auction.

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