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Every year, there are millions of vehicles sold at dealer auctions all over the country. Generally speaking, the automobiles which are a part of these auctions are sold at a price lower than what it would be if the vehicle was being sold off the lot. These auctions are generally restricted to the general public. In other words, only licensed dealers may participate. When dealing with dealer automobile auctions, there are a few different types of vehicles which most frequently are auctioned off.
Below are a few examples of auction vehicle categories:
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Dealers auction vehicle categories
Trade-In’s- These vehicles are generally taken out of an “aging inventory”, or an inventory that does not meet the dealerships profile. For example, an old Toyota Camry traded in for a brand new H2 Hummer may not fit in the inventory of the H2 dealership, and would then be considered for auctioning off. Trade-In’s have the greatest range as far as quality and condition goes; meaning some are in much better condition than others.
Off Rentals- Off-Rental vehicles are provided by those companies who rent vehicles to consumers. Once every year or two these companies will work towards replacing the vehicles they rent out. This scenario leaves these rental companies with a plethora of newer used vehicles. These companies rely on auctions to get rid of their used vehicles. These vehicles generally have high mileage, but are maintained in good condition. Similarly, off-lease vehicles are similar in characteristics, only these vehicles are gathered from the financial institutions in which the vehicles are returned.
Repossessed- Everyone recognizes this term. These vehicles come from banks that take the vehicle back, whether it be voluntarily or involuntarily. These auctions are the banks only outlets for making up the difference in lost funds. These vehicles are more likely to be neglected, or intentionally sabotaged, due to bitterness towards the banks.
Company Vehicles– Many companies which maintain company vehicles, keep them for only a few years before they begin to look to replace the older fleet. These vehicles do not have many extras, but they do tend to come in packs, making it easier to sell more. These vehicles can be used for a variety of reasons, experiencing different environmental influences, which inevitably makes it hard to determine the condition of the entire fleet.
All of the vehicles which are entered into the auction are done so with the intention of being able to be sold quickly and easily. Generally these prices are aimed towards encouraging dealers to bid on the vehicles, while maintaining the ability to resell the vehicle. Other factors that go into the price paid for the auctioned vehicle include the condition of the vehicle, mechanically and aesthetically speaking.
Once purchased, the time comes for these vehicles to be taken off the auctioned floor and delivered to the necessary dealerships, where they will be marked up and sold for profit. Generally, most dealers do not have any significant problems with shipping the vehicles to the auctions. They find that most of the time, the difficulties arise in delivering the vehicles, especially if they are going to different sales lots.
Working with Patriot Auto Carriers can help to eliminate some of the stress associated with the transportation process. Our dealers like the fact that they can deal with one company to facilitate the transportation of vehicles in different locations at the same time. Also, for your convenience, while most carriers only accept cash payments, we understand that this is not always an easy option, which is why we allow payments to be made via credit card. Yet another perk offered to you by Patriot Auto Carriers is the free advertisement we provide on our website once our services are utilized by your dealership.
Let us help you help yourself. Conveniently place orders by email and get free advertisement opportunities when you join the Patriot Auto Carrier team. Contact us today to learn about some of the other benefits we offer dealers who take advantage of our services.
If you are an auto dealer that brings vehicles to or from auctions and car shows, we offer dealer solutions for ensuring your carriers treat your shipping as a business-to-business transaction. Call Patriot and setup a B2B dealer auto transporter relationship and save on every exchange you participate in!
Patriot Auto carriers, LLC 866-436-7449