Do you prefer watching movies at home or going to the theater? Watching from home allows you to enjoy a movie from the comfort of your couch, bed, or living room, without having to leave the house. On the other hand, going to the theater lets you view a movie on the big screen, with loud audio, and popcorn straight from the machine.
When it comes to auto auctions, the same situation is possible. For nearly 2 decades, Big Valley Auto Auction has been a prominent South Texas dealer-only auto auction. Since we added the option of bidding online, 20% - 30% of our total sales have been online wins.
In this article, you’re going to learn the 8 differences between online and in-person auto auctions, the advantages each type brings, and how online auto auctions hold up to traditional auto auctions.
What Are the Differences Between Online and In-Person Auto Auctions?
There are 8 differences between online and in-person auto auctions.
1. Location
When it comes to location, you do not need to be at a specific location to bid at an online auto auction. For example, Salvagebid is an online auto auction that lets you participate in 150 daily IAA auction locations across the US. You can access these auto auctions from your home or office.
Auto auctions with a physical location, such as Big Valley Auto Auction in Donna, Texas, allow you to bid in person and experience the excitement of auction day. While Big Valley does offer online bidding through our simulcast, sale days are primarily made up of in-person bidding.
2. Inventory
All auto auctions, regardless of in-person or online, have a wide variety of inventory. What you find will depend on what the dealers bring in.
For example, Salvagebid inventory consists of cars, trucks, motorcycles, trailers, RVs, boats, snowmobiles, buses, jet skis, trailers, industrial equipment, and other vehicle types. At the moment of writing this article (August 14, 2023), there are 10,000 vehicles available to purchase, from locations such as New York, Georgia, and Virginia.
Here at Big Valley Auto Auction, we run on a smaller scale, running 500+ units every Thursday morning at 9:30 AM and 200+ units at 4:00 PM. Big Valley’s inventory typically consists of cars, trucks, SUVs, motorcycles, go-karts, golf carts, trailers, and boats.
3. Inspection Services
Inspecting a vehicle is a very important step when preparing to buy a vehicle. However, this process differs when bidding online.
When you participate in an online auto auction, you aren’t able to physically inspect the vehicle on the lot. Instead, you will have to depend on the vehicle's condition report, if applicable. A condition report is a complete visual inspection of the interior and exterior of a vehicle. The vehicle's AutoGrade will be listed, letting you know whether your vehicle is in good, bad, or decent shape. This grade is based on a scale of 0-5, with 0 being a horrible condition, and 5 being great.
A condition report will also catch any damage you may not have seen, such as dents, scratches, or chipped paint. However, not all vehicles have a condition report, which is an added risk when buying online.
On the other hand, physical auto auctions give you the opportunity to view the interior and exterior of a vehicle, as well as sit inside. Big Valley Auto Auction allows its customers to test drive a vehicle on the lot, at no more than 8 miles per hour. This is a bit of added protection for buyers purchasing vehicles that may not have a condition report.
Although inspection services add a layer of protection, there are still risks that come with the bidding process.
4. Risks
Risks are a big part of the bidding process when attending any auto auction. If you’re bidding through an online auto auction, the internet can go out. If this occurs when someone outbids you, you could potentially end up losing.
Another risk is you could accidentally press the “bid” button, or someone else can press it for you and cause an unnecessary bid. For example, one dealer claimed that his cleaning lady was cleaning his desk and accidentally placed a bid.
Even bidding on your phone could lead to an accidental bid. There was an instance where a dealer meant to refresh his page, but pressed the “bid” button as a mistake. If this happens, you should message the block clerk, if possible, and explain the situation.
But risks aren’t exclusive to online auto auctions. If you’re bidding in person, physical movements such as flashing your bidders badge, tipping your hat, or making eye contact with an auctioneer may be considered a bid. In the event of accidental bids, you should approach the auction clerk to retract your bid.
5. Transportation Services
Winning a vehicle is one thing. Getting it to your lot is another. Different auto auctions offer different transportation options.
Not all online auto auctions provide shipping services if you win a vehicle. However, Salvagebid gives you the option to work with EasyHaul for shipping needs. EasyHaul specializes in professional vehicle transportation, both domestic and international. They also have a shipping calculator on every item, to give you an estimate on how much it’ll cost to ship your vehicle.
Depending on which physical auto auction you choose, there are a number of transportation services certain auctions offer. Big Valley Auto Auction offers 5 different transportation services, such as vehicle pickup, delivery, dolly, trailer, and tow truck to help make your auction day experience easier.
6. Auction Day Experience
Auto auctions can be a very exciting experience. From competing against other bidders, to the sound of engines running, auction days have a different feel. Although the experience may differ if you’re bidding from home or work.
Bidding online is a remote experience, with potentially less distractions than attending in-person. You’re more than likely not surrounded by as much noise or people, but it can still be competitive, as you’re still trying to outbid other dealers.
If you’re attending an auto auction in-person, you’ll be surrounded by a lot of other motivated dealers, bidding on the same vehicle. It can also get hectic and competitive, which is either good or bad, depending on how you view it.
You’ll also be exposed to natural elements, such as heat, cold, or rain. If you’re a fan of the outdoors, then this might be a positive factor for you. However, bad weather might cause a bad experience, so it’s best to consider this before attending.
7. Memberships
Not all auto auctions require memberships or dealer licenses to participate. For example, Salvagebid is open to the public. You do not need to be a registered dealer. However, they do require you to sign up for one of their 3 memberships. If you’re going to buy 1 vehicle, you can use the free Starter Membership. For those looking to buy multiple vehicles, Premium and VIP Memberships are available, to support multiple purchases.
A one year Starter Membership is $69.00. You are only able to purchase two vehicles, one at a time, up to $5,000 each with a Starter membership. However you can participate in live bidding and will be provided 1 free vehicle history report provided by ClearVin.
A one year Premium Membership is $199.00 and allows you to purchase as many cars as you like during the year. It also provides you with 10 free vehicle history reports and discounted transaction fees.
A VIP Membership is $349.00 and offers higher discounts on transaction fees, as well as 20 ClearVin credits and other benefits.
Dealer-only auto auctions, such as Big Valley Auto Auction or any NAAA auto auctions, require having an AuctionACCESS membership, in order to participate. The membership cost is $103.00 per year, for each individual dealer. Once your account is activated and payment is confirmed, you’ll be able to attend.
8. Turnaround Time
Online auto auctions allow you to pick up the vehicle or arrange for shipping as soon as you receive the email confirming that the vehicle is ready for pick-up. You will need to sign the bill of sale and other sales documents before you will receive this notice. Typically, you will receive notification the same day payment is applied and processed, and the documents are signed.
The vehicle must be picked up within 3 business days including the sale date. After that, a minimum fee of $50.00 per day in storage fees will be charged. If the auction facility charges a rate higher than $50.00 per day, the higher rate will be charged instead. For example, if the sale is Monday, then the vehicle must be picked up no later than Wednesday. Storage fees would begin Thursday.
Here at Big Valley Auto Auction vehicles sold 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 $150.00 late fee for each vehicle missing a payment.
Are Online Auto Auctions or In-Person Better for Me?
If you prefer to watch movies at home, where there will be fewer distractions, then online auto auctions might be the best method for you to purchase your vehicles. But if you prefer to get the full movie experience and go to the theater, then in-person auto auctions may suit your needs better.
Whether you're new to auto auctions or you're considering switching from one type to the other, you can use this article as a guide to help you decide which is best for you.
Now that you know the differences between online auto auctions and in-person auto auctions, learn which are the 3 best online auto auctions, to help you narrow down your choices.
