Who Sells Cars At Car Auctions
When you go to car auctions you may wonder where all the variety of cars comes from and who is selling them. Most of the venders who wish to buy or sell automobiles are car dealers who have overstocked lots or want to move older vehicles to replace them with newer models. These dealers work using what is called a dribble down method. The method was created to move cars to different segments of the community who possessed different kinds of buying power. The car auction is the tool in which the cars get passed from one dealer to another. Once a new car dealer has new cars coming in, he or she will put the cars that have been on the lot for the longest to auction.
Here at reduced but still high starting prices used car dealers and new car dealers with room will bid for the cars. The third tier of this process involves the independent dealers and car enthusiasts. If the care does not sell at a used car lot, the car will be placed back into auction for the lower tier customers to bid on.
This is not a closed system. The car auction is not designed specifically for dealers. Any person with the money can compete in the auction if there is a car that they specifically want and can afford. Remember the dealers probably will have a bigger cash reserve and that they can drive the price out of your affordability range and still make a profit themselves. Don't be afraid to bid, just bid within the constraints of your wallet. If you lose a car, try again with another car you might like. Even if you don't win at all, come back and try again at another auction.
The people at the car auction have the same chances at winning the car of their choice and even though the auction is dominated by dealers, the common man has just as much chance as the professional.
With the introduction to online car auctions, the chances of the novice individual winning the auction increases. The fall back to online auctions is that literally millions of people can be bidding on the same vehicle. Popular online car auctions even draw attention to over seas bidders. All walks of life and socio-economical backgrounds can compete on an online car auction. This broadens the competition as there are more potential buyers, but there are more products to choose from. This overshadows the traditional car auction due to the fact that sellers will come from both the dealer and the overall public. Different opinions of starting prices will vary because of the influx of novice sellers.
This could be an advantage or disadvantage depending on the way you look at it. With more cars and more participants the chances of you finding a deal is greatly heightened. The people who sell at auctions will dictate the price of your car, so like going to a casino, the more times you pull the handle of that slot, the more chance you will find yourself the deal of a life time.