Big Valley Auto Auction Blog

6 Auto Auction Tips for Buyers

Written by Arlene M. | Dec 9, 2022 7:30:06 PM

Do you need to stock your lot? 

Are you new to wholesale auctions?

Whichever your situation, buying inventory at a variety of auctions can be beneficial to your business. If you don’t venture to other auctions or have never attended an auction sale day, we know it can feel stressful to consider buying somewhere new. 

 

Here at Big Valley Auto Auction (BVAA), we’ve registered over 2,000 dealers since opening our doors in 2008. We have seen dealers capitalize on great deals, and we’ve also seen some make mistakes that significantly affect their budgets. BVAA understands that deciding to buy at a new auto auction can feel unnecessary if you haven’t considered it in the past. 

 

We will walk you through the 6 tips for Buyers to help you have a successful experience at any auction you decide to attend. Knowing these tips will give you an insight into having a successful sale day wherever you choose to attend, whether that's with us at BVAA or somewhere else you’ve chosen.

 

Auto Auction Tip #1: Do Your Homework 

 

The safest way to purchase vehicles is to set a budget and do your research. 

 

It’s common for auctions to offer run lists, condition reports, and photos of vehicles before in-lane and online auctions. Although not every auction is the same, most will offer resources to aid your research on potential purchases. Find a dealer who offers what you need.

 

Knowing the makes and models of vehicles will guarantee you know how the vehicles should be priced. Then having an idea of a vehicle’s resale value will help you plan your budget and assess the risk. 

 

Understanding the depreciation rate for each vehicle will help you determine if there is profit available over time. A vehicle with a higher economic value takes longer to depreciate before reaching the base utility value. All vehicles are different, so it’s important to know that not every vehicle follows this formula. Doing ample research in advance will allow you to arrive at your auto auction prepared for what the market may offer.

 

A few free apps we recommend you start with:

 

 

Auto Auction Tip #2: Show Up Early

 

Rushing in on auction day can make you feel overwhelmed and wonder if you’ll find vehicles that fit your customer’s needs. 

 

We recommend Buyers utilize early viewing days offered by auctions to view vehicles and plan purchases. You can view weekly inventory ahead of time and condition reports through the Inventory button on the BVAA website from the comfort of your office.

 

While we can’t speak for all auctions, we guarantee that BVAA early preview days start every Wednesday at 9:00 am and ends at 6:00 pm. If you can’t make it on Wednesday, the BVAA office opens at 7:30 am on Thursday, so you can view vehicles right before the auction begins. If you cannot attend the physical auction, you can use our online auction to browse our inventory and bid during our live auction.

 

Auto Auction Tip #3: Familiarize Yourself With Policies

 

Not knowing auto auction policies can leave you feeling lost in a crowd. Familiarizing yourself with auto auction requirements and policies will help you avoid misunderstandings.  

 

It would also be smart for you to understand how the light system works at an auto auction. Each light describes the current state of the vehicle and the qualifications for arbitration of each vehicle.

 

Finally, it is beneficial to understand each auction's arbitration policies and process. Check with your auction for information on their arbitration policies and requirements, so you are not caught off guard.

 

         

 

Auto Auction Tip #4: Have a plan 

 

If you've done all your homework on the cars you want and set a bidding range that suits your budget, you may feel excited to get everything on your list. Avoid disappointment by setting a comfortable spending cap on the vehicles you are interested in and prepare to bend a little.

 

One of the biggest issues Buyers run into after an auction ends is buyer’s remorse. Prevent buyer’s remorse by deciding whether or not a vehicle is worth your efforts. If you're unsure if a vehicle is worth a floor price over the vehicle’s market value, walk away, and consider other similar vehicles. Give yourself time to think.

 

Rushing to bid on vehicles without considering the announcements or light it's run under is another cause of buyer's remorse. This a dangerous misstep that can set your budget back and make you the owner of a vehicle you didn’t even want.

 

Auto auctions run vehicles under a light system that determines a vehicle's condition. You can avoid buying vehicles with undisclosed issues by understanding light requirements. Always listen to the auctioneer for important announcements about a vehicle's condition.



Auto Auction Tip #5: Use Caution When Bidding

 

When you’re attending an auction, notice how other buyers bid and listen to the cadence of the auctioneers. While observing, remember that any movement can be seen as a bid, so pay attention and do not wave at people. 

 

Visiting an auto auction before committing to buy will prepare you to bid with confidence. Listen to auctioneers and watch how quickly vehicles move across the block. When you're comfortable on the auction floor, start bidding!

 

Auto Auction Tip #6: Bid Online at Auto Auctions

 

If you are interested in an auction that isn’t in your immediate area, you should consider buying online if the auction provides the option. You can bid during live sales and view inventory from the comfort of your office by attending online auctions. 

 

 

We can’t speak for everyone, but we guarantee that you will have access to live audio and video of all four lanes during BVAA’s weekly Thursday Sale.

 

BVAA’s Thursday sale starts at 9:30 am and ends at 1:00 pm. All four buy lanes are accessible in real-time, so you can buy online at BVAA during our Simulcast streams. Just make sure you’ve done your homework first! 

 

In addition to the Thursday sale, BVAA now offers an online Second Chance Sale. The Second Chance Sale is every Thursday from 4:00 pm to 7:00 pm. 

 

Once Thursday auctions have ended, BVAA will post any remaining vehicles to the Buy Now tab on the BVAA website. 

 

You have until the following Monday, 5:00 pm, to utilize our Buy Now option on cars that didn’t sell. These second-chance vehicles are a great way to build inventory.

 

Are You Ready to Buy at an Auto Auction?

 

Whether you’re new to auto auctions or a seasoned dealer, you can take the tips covered and apply them immediately. Use these tips to guide you during your next visit to an auto auction.

You can expect a positive buying experience at any auto auction with the insight you gained from these 6 tips. Still, wondering about the outcomes of a sale gone wrong?  “What to Expect From an Arbitration as a Buyer?” will give you an overview of what to expect from a BVAA Arbitration, and BVAA Inspection Services lists the inspections offered to guarantee your vehicle's arbitration eligibility. 

 

 

For more information, please call us at (956)461-9000 or email us at registration@BigValleyaa.com

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