In the 1950s, business owners would hire the Mafia to protect their establishment. Every week, these owners would pay the Mafia around $100 to guarantee the neighborhood remained safe. The Mafia made sure to keep drug dealers, gangs, and burglars away from their client’s business. However, if you refused to pay the Mafia for their services, they would burn your business down.
Now imagine an auto auction dealer burning your business down because you didn’t finalize your payment. That would be insane!
While these old-time business methods may have worked in the 1950s, finalizing payments looks a little different today. Receiving a payment for a title or paying for a purchase is the last step when participating at an auto auction.
Here at Big Valley, we’ve been helping buyers and sellers finalize payments since 2008. We have a process for both buyers and sellers, which we’ll break down for you. We’ll also dive into what payment options and flooring companies are accepted. This will have you prepared with the right information you need to ensure your next auction day is a success.
Buyers, in this case, are the business owners who paid the Mafia for protection. Buyers bid on a vehicle and, if they win, must pay the amount they bid for that vehicle. But it’s not as simple as just handing the money to the dealer. Because of this, we’ve broken this down to 3 simple steps for you:
If you bid on vehicles during an auction, you must request your buyer report from the front office. The buyer report includes vehicles ready for purchase and any remaining “if” bids. When you receive your buyer report, you should review your purchases and provide payment for the vehicles before 5:00 PM on auction sale day. Exceptions to this rule are “if” bids that are undergoing negotiations.
An “if” bid is when you place a bid on a vehicle and win, but the bid does not meet the floor price suggested by the seller. When there is an “if” bid, a vehicle is considered “on-call”.
When you have an on-call vehicle, the sales team will begin the negotiation process by contacting the seller with the current bid. The sales rep will let the seller know the highest bid for their unit did not reach the asking price. The seller will then give the sales rep an amount they’d be willing to accept, the sales rep will tell the buyer, and see if a deal can be reached. Negotiations must be resolved by 12:00 PM the day after the auction.
Sale day vehicles will not be released until the auction has ended, and you provide payment at the front office for the vehicle sold to you. When the payment is received, you will receive a gate pass for each purchase. Failure to provide payment by 5:00 PM on the date of sale will result in a $150 late fee for each vehicle missing a payment.
Receiving the title is the last step in buying a vehicle at Big Valley Auto Auction. You cannot take the vehicle home until you receive the title from the seller. Once the seller brings the title to the auction and has it approved, the auction will pay the seller. The buyer can then pick up the title for the unit they purchased.
If buyers are the business owners who paid the Mafia, sellers are the Mafia. Buyers bid on your vehicle and now they have to pay up. But before you get their money, you have to go through these 2 steps:
If you sold vehicles during the auction, you need to request a seller report at the front office, via email, or contacting the sales team. The Big Valley Auto Auction team will immediately check the database and provide you with the report. The seller report includes vehicles sold on the block and any remaining “if” sales.
Below is a photo of a seller report, which features the lot number the vehicle was run under, year, make, model, and whether or not it’s an “if” bid.
When you get the seller report, you should review your sales and bring the titles of vehicles sold within 21 business days or 30 calendar days. If a vehicle is on call, you will be contacted by the sales team with a bid amount placed and negotiations will begin. Similar to the negotiation process for an “if” bid where offers are discussed between sellers, buyers, and sales representatives, they must be resolved by 12:00 PM the Friday after the auction sale day.
Big Valley Auto Auction does not pay you for sold vehicles until a valid vehicle title has been provided. Once an agreement has been made, the seller has 21 business days to bring a valid title for the vehicle to the auto auction. You may pick up checks for vehicles sold the day after the auction sale day. Big Valley Auto Auction does not provide checks until you provide a vehicle’s title.
We recommend bringing in titles, along with your vehicle, to our Thursday auction sale day. Or bring your valid titles the Friday after the auction sale day to receive payment as soon as possible.
Failure to bring in titles within 21 business days or 30 calendar days will result in a $150 late fee for each missing title. Missing this deadline may also result in a Late Title Arbitration submitted by the buyer and the reversal of the sale. This will give the buyer the right to arbitrate and leaves the seller with 24 hours to provide a title. The buyer will also have the choice to return the title and receive a refund.
To buy at Big Valley Auto Auction, you need at least one of the 4 following payment options:
1. Cash
2. Cashier's check
3. Business check
4. A line of credit offered by a flooring company
Business checks are held until a valid, transferable title is received, and the title department has worked to the vehicle title. When purchasing multiple vehicles, it is advised that you submit a check for each purchase. If you provide one large check, the entire check amount will be deposited. When the first title is received by the auction, flooring companies differ based on each company's policies.
Big Valley Auto Auction works with 10 flooring companies:
If the flooring company you work with is not listed, you can still work with Big Valley. The buyer has the right to send in a company check, cashier’s check, submit an ACH wire transaction, or use a different flooring company.
Some flooring companies pay for the vehicle at the time of purchase while others wait until the title is received by the auction. Be sure to check with your flooring company to clarify policies.
Once the payment process has been completed, you’re ready to take your new purchase to its new home.
If you’re scared that we’ll burn down your business if you don’t pay us, don’t worry. Big Valley Auto Auction’s finalization process for transactions is structured to make sure everything works out well for both buyers and sellers, without the use of fire.
Now that, hopefully, your mind is at ease and you can focus on making a decision, you can use this article as a guide to help you prepare for your next auto auction.
If you've decided that Big Valley Auto Auction is the best choice for you, click the button below to speak with our dealer registration specialist to get you registered.
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