Have you ever set a New Year’s resolution of working out for the year, then giving up a few months in? A lot of times people stop due to having no clear workout plan or lack of knowledge of training. This leads to people giving up and having an overall bad experience.
Although Big Valley Auto Auction doesn’t offer personal training programs, we do offer the knowledge of what can cause a bad auto auction experience. Since 2008, we’ve heard customers’ stories, as well as learned throughout the years what can cause a bad experience, and we want to share that information to help prevent this from happening to you.
In this article, you’ll learn the 4 main causes of a bad auto auction experience. You’ll then be equipped with the right information to help you have a positive time at an auto auction. (Even if you don’t win)
What Factors Can Cause a Bad Auto Auction Experience?
There are 4 factors that can cause a bad auto auction experiece:
- Not knowing the auto auction's rules
- Bad auto auction customer service
- Inaccurate vehicle representation
- Competitive auto auction bidding environment
Factor 1: Not Knowing Auto Auction Rules
All auto auctions have different rules and regulations. For example, Big Valley Auto Auction has a Sale Light system that all vehicles follow, an arbitration policy, and required fees. While we can’t speak for other auto auctions, we have our own rules.
Light System
One of those rules is Big Valley’s light system, which consists of 3 colors:
- Green
- Yellow
- Red
Arbitration Policy
Arbitration is the dispute between a buyer and seller over undisclosed issues with a vehicle. If a buyer purchases a vehicle that was run under a green or yellow light, with any type of issues not mentioned by the seller, the buyer can file an arbitration, if inspected and within 7 days of purchase.
To qualify for arbitration, the vehicle must have at least one single issue costing $800 or more, per NAAA Arbitration Policy.
Fees
Like all good things, they come with a price. Whether you’re buying or selling, you will face a number of fees. Some of these fees are mandatory, however others depend on the situation.
You will face the following fees when dealing at Big Valley Auto Auction:
- Buy fee (required)
- Late fee: $150.00 (situational)
- Flooring fee: $30.00 per vehicle (optional)
- Non Sufficient Funds (NSF) fee: $150.00 (situational)
- Sale fee (required)
- Rerun fee: $75.00 per week (situational)
- Storage fee: $5.00 per day (situational)
- Arbitration fee (from PSI): $115.00 (optional)
Rules, regulations, and fees may differ depending on the auto auction you go to. Knowing these rules ahead of time will get you prepared for auction day.
One way to learn these rules ahead of time is to research the auto auction’s website. Any information regarding payment methods or transportation services can be useful to know before going to an auction.
However, sometimes these rules may not have been brought to your attention ahead of time. This could be a result of lack of communication.
Factor 2: Bad Auto Auction Customer Service
No matter what industry you work in, bad customer service leaves a lasting impression on clients. Whether it’s staff being unresponsive to emails or phone calls, not addressing any issues brought to their attention, or displaying a rude attitude, this behavior could push clients away.
An example of bad customer service from an auto auction is when a sales representative doesn’t follow up in communicating with a potential customer. This could be a case of a dealer showing interest in selling a vehicle, but the sales representative delays returning their calls or isn’t giving clear information on what the dealer’s next step should be in the selling process.
While we can’t speak for other auto auctions and their customer service, Big Valley Auto Auction can explain what good customer service looks like. You can hear from some of our registered dealers, to get an idea of how we execute our “When you’re here, you’re family” motto.
Factor 3: Inaccurate Vehicle Representation
All auto auctions have the goal of properly representing their vehicles. Building trust with customers is important. However, there are instances where workers may slip up and make a mistake, such as listing a vehicle with the wrong AutoGrade on a condition report.
Condition reports are visual and cosmetic inspections of the interior and exterior of a vehicle. Items included in this inspection are airbags, floor panels, bumpers, windows, mirrors, and lights.
The AutoGrade of a vehicle is based on a scale of 0-5, with 0 being the worst condition and 5 being in excellent condition. A vehicle with an AutoGrade of 5 would have no missing, broken, or damaged parts that require replacement, whereas a vehicle graded a 0 is inoperable and only good for parts.
For example, if a worker gives a vehicle an AutoGrade of 5, but the vehicle requires a replacement of a part or repairs, then the vehicle’s true grade is not a 5.
Inaccurate vehicle descriptions can lead to buyers remorse or just souring you on participating in future sales.
Factor 4: Competitive Auto Auction Bidding Environment
Bidding at an auto auction can be a hectic situation. With a crowd full of numerous people bidding on the same vehicle, it’s easy to get caught up in the heat of the moment. However, it’s very easy to lose your composure if you’re determined to win. A result of this could be “ego bidding”.
“Ego bidding” is a term used to describe a person who is bidding strictly to beat a dealer they don’t like. This often leads to a bidder going over their budget or spending more than they had planned, just because they didn’t want a specific dealer to win.
Not knowing the market value of a vehicle being auctioned off is another factor to consider. If you bid $5,000 on a vehicle that is only worth $2,000, then it will cost you money you didn’t have to spend.
A competitive bidding environment can also distract you from thoroughly checking the vehicle’s damage before bidding. Sometimes bidders are so determined to win that they bid as soon as possible, without getting a good look at the vehicle. For example, a bidder looks at one side of a vehicle being auctioned off, likes what they see, and places a bid. However, they didn’t look all around the vehicle and notice the crash damage on the driver’s side.
Am I Ready to Participate in an Auto Auction?
If you have no problem quitting something the moment it doesn’t go right, then you more than likely won’t complain about having a bad time at an auto auction. However, if you’re looking forward to auction day and want to have a good time, this article may be of good use to you.
Whether you’re a first time participant or experienced, you can use this article as a checklist to make sure these factors don’t play a part in affecting your auto auction experience.
If you'd like to participate at Big Valley Auto Auction, click the button below to speak with our dealer registration specialist to get you registered.
Not ready to talk? That’s okay! First, learn more about what it’s like to buy and sell at Big Valley Auto Auction by clicking the image below:
