Have you seen the recent trend of Stanley cups selling like crazy? This was due to a few social media influencers promoting the cup, making the item go viral and become hard to find in multiple stores. Could the same happen to your inventory?
While Big Valley Auto Auction doesn’t sell Stanley cups, we’ve helped dealers sell vehicles since 2008. Dealers have brought in inventory of all types of models and conditions, and we’ve done our best to lead our dealers to a successful sale day.
In this article, you’re going to learn the 10 tips you can use to sell your vehicle at an auto auction and what to do if your vehicle doesn’t end up selling..
After reading this article, you’ll have the information needed to confidently sell your inventory at your next auto auction.
Stanley cups are the latest trend. However, like all trends, they won’t be hot for long. But cars will always be in demand. Which is why it’s best to know the tips that can help you sell your vehicles. There are 10 tips you should know before selling your vehicle at an auto auction.
Before showing up to an auction day unannounced, make sure you register with the auto auction where you plan on selling. For wholesale dealer-only auto auctions you will be asked for a form of identification, a dealer’s license and AuctionACCESS account. Completing this step ahead of time will speed up the process of entering the auction.
As the saying goes, “Everything comes with a price”. When selling at an auto auction, you may come across different types of fees. For example, when selling at Big Valley Auto Auction, you will have to pay a Sale fee, which is based on the amount your vehicle sold for. The higher the price, the higher the fee.
You will also have to pay a Condition Report fee, as every vehicle that runs through Big Valley Auto Auction must receive a condition report. A condition report is a complete visual inspection of the interior and exterior of a vehicle. This helps accurately represent your vehicle to online customers, if you can't be at the auction in person.
There are also optional and situational fees you may need to pay, depending on your situation.
Calling the auto auction ahead of time for lane reservation numbers is recommended because it helps place your vehicle in a better position when running on the lane. For example, if you call Big Valley Auto Auction before Thursday (sale day) to reserve your lane number, your vehicle will run on the lane sooner than it would if you bring it in on sale day with no reservation.
It also might be a bit more difficult to sell your vehicle when it’s running closer to the end because some dealers don’t stay for the entire auction. Some dealers buy what they need and leave after. And if someone is selling a vehicle that’s similar to yours but they’re running earlier, that vehicle could sell over yours.
The key factor that makes or breaks a deal is a vehicle’s price. Overpricing your vehicle will scare bidders away and selling too low could cost you a profit. It’s always good to be aware of your vehicle’s market value.
There are 3 resources that keep dealers informed about the market value of vehicles:
While the main goal is to make as much money as you can, you need to be reasonable when setting a price for your inventory. When setting a price, consider fees, market value, and any work done to the vehicle.
Bringing your vehicle to the auto auction early allows the auction time to photograph your vehicle and provide and receive a condition report. These photos will be posted immediately they are finished, making the information visible sooner.
Clean cars bring in more money than vehicles that aren’t taken care of as much. Big Valley Auto Auction offers reconditioning services that can wash, vacuum, or detail your vehicle to get it ready for the block.
When putting your vehicle for sale, you should always be transparent with your vehicle. You should disclose any announcements and let buyers know of any damages or issues it may have. It’s best to represent your car the way you’d want to buy your car.
If you can, represent your vehicle on the block. This helps dealers associate your face with your company brand. It also gives you the platform to decide on bids on the spot. For example, if you’re asking for $10,000, someone bids $9,500 and you agree on the spot, it shows dealers you are decisive. Being able to make decisions quickly helps build confidence in your buyers.
Transferring the title of your vehicle is the final step in finalizing your sale. If you bring the title in early, this will speed up the sales process and help you get paid quicker.
If this is your first time selling at an auto auction, it’s always good to get familiar with the auction staff. Meeting the sales representatives and front counter staff will help you get comfortable in the environment. If you’re going to be representing your inventory on the block, getting to know the auctioneer will help you ensure you’re both on the same page during the sale.
Have you ever bought a gallon of milk and kept it past the expiration date? Usually the milk will spoil and no longer be good to drink. This is the same for vehicles that stay in your lot for too long. The longer you hold on to your vehicle and it doesn’t sell, the quicker its value decreases. This is known as depreciation.
A common reason someone will keep their vehicle too long is because they get emotionally attached to it. You may have spent hundreds of dollars on reconditioning and inspection services and want to make it all back. Unfortunately, you won’t make back everything you spent. It’s better to lose a little now than to lose a lot later.
Nothing is guaranteed in life. While these tips might help some dealers, they might not be effective for everyone. In the event that your vehicle doesn’t sell, there are 3 steps you can take to try and make that sale.
As mentioned earlier, a high asking may cause bidders to steer clear from buying your vehicle. If price is what’s preventing your vehicle from selling, you might want to change your strategy and adjust your floor price.
Big Valley Auto Auction allows vehicles to run through the lane 3 times before being charged a rerun fee. If it isn’t sold during the morning sale, you have the opportunity to run it again during our Second Chance sale, which takes place at 4:00 PM on sale day.
If your vehicle doesn’t sell during our morning and Second Chance sale, Big Valley sales representatives will post your inventory on online platforms, such as OVE, Auction Edge, and SmartAuction. This will expose your vehicle to a wider audience and increase the chance of your vehicle selling. If you need assistance, you can contact one of our sales representatives for further information.
Selling vehicles at an auto auction could be tough when starting out. But knowing things like reasonably pricing your vehicle and keeping it clean could help make selling a bit easier.
Whether this is your first time selling at an auto auction or you’re an experienced dealer looking for a few tips to add to your skillset, you can use this article as a guide to help you sell confidently at your next auto auction.
Now that you know the 10 tips that can help you sell your vehicle, you can register with Big Valley Auto Auction and try selling your inventory on our sale day.