You’re opening your dealership for the day and notice an overflow of vehicles on your lot. Customers aren’t signing on the bottom line, and you realize that you have too many options that don’t fit your customer’s needs. You realize the only way to sell to your customers is to rotate your inventory.
“How do I make space for new inventory?” you might wonder.
The easy answer is selling some vehicles at a wholesale auto auction.
Big Valley Auto Auction (BVAA) has been offering dealers opportunities to sell vehicles to a competitive market since 2008. We understand dealers want a secure, hassle-free transaction, so of course, we’re biased when it comes to our services. However, BVAA’s goal is to offer an objective look at the pros and cons of selling at BVAA.
By the end of this article, you will know the pros and cons of selling at BVAA so you can decide if selling at BVAA is right for you.
Auto Auctions have been around since the 1930s, and the concept has remained the same. Quality vehicles are brought to one location for crowds of interested Buyers to bid against each other.
Instead of struggling to attract buyers and negotiate sales, BVAA handles advertising and sales for you. Our built-in market is full of independent and franchise dealers looking for cars their customers are asking for, but we don’t stop there.
BVAA attracts buyers with a blend of marketing strategies to get eyes on your vehicles. From social media advertising to in-office visits from our sales team, BVAA is constantly promoting vehicles for sale.
You can avoid the stress of trying to sell to uncertain customers by opting to sell at a wholesale auto auction. Buyers at auto auctions usually look for multiple vehicles at a time and know what their customers are asking for.
Instead of dealing with the uncertainty of a single sale, you can sell multiple vehicles in one day at the minimum price you want. For example, if you sell three vehicles above your minimum asking price, you won't need to follow up with Buyers or wait for payments. All you need to do next is bring in valid titles for each vehicle, and you can receive three immediate payments. BVAA will handle the final steps of your sales to make selling vehicles quick and effortless.
Selling multiple cars quickly and efficiently is the first service that comes to mind when auto auctions are discussed. Depending on the auction, there are various services to get your vehicles ready for sale day. BVAA offers Title work, Inspections, Transportation, and Recon to all registered dealers.
Title reassignment is handled by the BVAA Titles team, so all you have to do is bring is a valid title for every vehicle you sell.
Inspection services are optional but recommended to avoid costly arbitration fees and returns.
Transportation services will get your vehicles to and from the auction, so you won’t stress about how and when your vehicles will arrive.
Recon is available to get your vehicles showroom ready, so your cars can have a good first impression with Buyers in-lane and on your lot.
By using one or more of BVAA's additional services, you can make selling your vehicles effortless and easy.
Each auto auction has different run list policies, and choosing your run spots isn't common practice at auto auctions. However, BVAA uses a percent system that offers earlier run spots to dealers with a high sale rate. This means the more vehicles you sell, the higher your sale rate will be.
For example, if you constantly sell 18 out of 20 vehicles at a time, your sale rate will be 90%. Your 90% sale rate will move you forward in the run list. Consequently, if your sale rate is 10%, your run spot will reflect this.
To keep Buyers intrigued, we recommend 7 Tips for Sellers at an Auto Auction.
It’s no secret that vehicles sold at retail are marked up to earn a substantial profit. At auto auctions, your vehicle profits vary. Vehicles are reserved for the highest bidder, but that doesn’t mean they automatically get to purchase the car. If a bid doesn’t meet your minimum asking price, the vehicle can be sold as an “if’ sale. When your vehicle is labeled an “If” sale, the sale will be negotiated between the Buyer and Seller.
When a vehicle is renegotiated, you will be contacted with the bid price, and you may decide if you’d like to sell the vehicle or pass on the offer.
The saying goes, “First money is the best money.” but if you choose to pass on the first offer, you may run the vehicle again during BVAA’s Second Chance Sale or the following week to try and gain a profit.
Auto auction fees are unavoidable at any auction you attend. Some are required fees, while others are optional.
The Sell fee is the first required fee you’ll encounter when finalizing the sale of your vehicle. The vehicle’s overall price determines the Sell fee. So, the higher the vehicle price, the higher the Sell fee.
(Download the Sell Fee cheat sheet)
Then there are optional inspection fees to ensure the vehicles you sell are in good condition and can’t be arbitrated.
A Pre-Certification Inspection is a basic mechanical, structural, and cosmetic inspection that follows the NAAA Arbitration Policy. The Pre-Certification varies depending on the light color a vehicle is run under.
Green Light Inspections receive a full Inspection and cost $115.00 per vehicle.
Yellow Light Inspections receive a Limited Drive-Train-Drive inspection and cost $115.00 per vehicle.
Red Light Inspections only receive a Frame check and cost $95.00 per vehicle.
The Condition Report provides a cosmetic inspection of the vehicle, auto-grade, and 360° spin car photos of the interior and exterior. A Condition Report is $35.00 per vehicle.
(Button for Inspection Fees)
Finally, BVAA has four situational fees.
A late title fee is applied to your account when you don’t provide a valid title within 21 business days or 30 calendar days from the sale day. You will need to pay the $150.00 late fee.
Arbitration fees are applied when a buyer submits an arbitration and it is deemed valid.
If a Buyers arbitration is valid, and the vehicle is returned, you will need to pay the $115.00 arbitration fee.
If a Buyers arbitration is valid, and the sale is renegotiated, you won’t need to pay the arbitration fee.
A Rerun Fee is charged when a vehicle has run three times at the auction. If a vehicle does not sell after three runs, the seller must pick up their vehicle(s) by 5:00 pm on the first Monday of the last auction week. The Rerun Fee is $75.00 per week for each vehicle.
After a car has run through the auction three times, a Storage fee is reviewed before the first charge. Upon approval, the storage fee will begin Monday after the third auction, and you will need to pay $5.00 per day.
Now that you reviewed the pros and cons of selling at BVAA, how it adds value, and where it falls short, you're prepared to decide if selling at BVAA is for you. We understand that deciding where to sell your vehicles may not be an easy decision. To further your research, "BVAA Buyer and Seller Fees" will give you a closer look at all the fees you can encounter as a registered dealer at BVAA.
If you’re wondering how a sale could go wrong, “What to expect from BVAA arbitration as a Seller” to dive into how and what could happen to a sale gone wrong.
For more information, please call us at (956)461-9000, or email us at registration@BigValleyaa.com
Check out our social media to learn about auction events and news!