If you want to sell old-age units or make room on your lot for new inventory, a wholesale auto auction is the place to be.
Selling at a wholesale auto auction can feel daunting when you have an excess of inventory or have never sold at an auction before. Whichever your situation, knowing what to do when selling at an Auto Auction gives you an insight into how to have a successful sale day.
Big Valley Auto Auction has been serving over 2,000 auto dealers since opening its doors in 2008. We know choosing to sell at new auctions can feel intimidating. Here, we’ll walk you through 7 tips to have successful sales and create space on your lot for new inventory.
1. Understand Auto Auction Policies
Walking into an auto auction without knowing its policies can leave you in unfamiliar territory. Each auto auction is different and adheres to its own set of policies. You’ll want to know each auto auction’s rules and fees to avoid misunderstandings.
Failure to understand policies could result in the loss of auction privileges or costly arbitration fees. The primary reason for these policies is to promote fair and ethical treatment of both the Buyer and the Seller.
Big Valley Auto Auction is a member of the National Auto Auction Association and adheres to the guidelines set by the NAAA. Understanding these policies will help you properly represent your vehicles and increase sales.
In addition to an increase in sales, you will receive better run numbers if you have a high sale rate. This means the more vehicles you sell, the more likely your vehicles can run earlier in the lanes.
For example, if you sell 70 cars out of 100, your sale rate is 70%. This sale rate will push your vehicles up on the run list. Similarly, if you have a sale rate of 15%, your vehicles will be run toward the end of the run list.
2. Know the Market Value of Your Vehicle
Big Valley Auto Auction requires a Floor Price for each vehicle you want to sell during an auto auction.
A Floor Price is a minimum price a Seller requests for their vehicle. If a bid does not meet the Floor Price of a vehicle, It is considered “On call/ If” and the negotiation process will begin.
Knowing the market value of your vehicle will give you an excellent foundation to base your Floor Price on. Researching the present wholesale value will give you an estimate of your vehicle's value.
Kelly Blue Book, Carfax, MMR, Autonique, and VINSolutions are great tools for researching your vehicles.
Overpricing your vehicle does not mean your vehicle is worth more and may lower your chances of selling the vehicle.
Buyers are looking for quality vehicles at fair market prices. Offering a vehicle at fair market value will increase the probability of your vehicle selling. If a Buyer can’t pay off fees associated with the buying process and still make a profit, they may ignore your cars altogether.
3. Disclose All the Issues of Your Vehicles Honestly
It is essential to represent your vehicles transparently to avoid costly Arbitration fees. Sellers who accurately and honestly represent their vehicles at the auction will see higher sales proceeds. This is because of the boosted buyer confidence.
Salvage, bonded title, and structural damage are a few issues that require an announcement in compliance with the Light System. Familiarizing yourself with the NAAA-required announcements will help you accurately represent your vehicle at the sale.
You are required to disclose every item with a “YES” in accordance with the light a vehicle is run under.
4. Request Vehicle Pre-Sale Inspections
If your goal is to save time and money at an auto auction, it is important to take every precaution to represent your vehicles accurately. BVAA offers two inspection services to ensure the accurate representation of your vehicles.
A Pre Certification is a basic mechanical, structural, and cosmetic inspection that follows the NAAA Arbitration Policy. A Pre Certification keeps sellers accountable and takes the guesswork out of required announcements.
This inspection helps the Seller accurately represent their vehicle and increases buyer confidence.
The Condition Report is a visual and cosmetic inspection that generates an Autograde for your vehicles.
Online buyers often buy based on the Condition Report Grade and photos displayed on the Inventory. This Report improves Buyer confidence and increases the probability of a vehicle selling.
5. Represent Your Vehicles on the Auction Block
As a Seller, representing your vehicles on the block can benefit your potential profit. When you represent your vehicles on the block, it verifies that you are selling reputable vehicles.
Representing your vehicle improves Buyer trust and boosts confidence in each purchase. Established trust increases the probability that a Buyer will continue to buy from the same Seller.
6. Give Your Car a Showroom Shine
Transparency matters to Buyers in every stage of the buying process. Bringing clean cars to sell will make a good first impression and keep eyes on your vehicles.
Buyers sometimes overlook dirty cars, so cleaning your vehicles will give the appearance of a maintained vehicle. When a Buyers first impression is a clean vehicle, they can identify any cosmetic damage at a glance.
If you don’t have time to wash your vehicles before the sale, Auto Auction Recon Services are available depending on the Auction.
7. Bring Vehicles to the Auto Auction as Early as Possible
Bringing vehicles as early as possible will guarantee maximum exposure to online and in-lane buyers. BVAA photographs vehicles when they arrive at the lot and adds them to the inventory. The earlier your vehicle is in our lot, the more exposure it has to potential buyers in person and online.
In-lane buyers can view vehicles in person on auction preview day and the morning of the sale.
BVAA’s preview day is Wednesday, and our Big Valley sale day is Thursday.
Dealers can take advantage of the early viewing that starts Wednesday at 8:00 am and ends at 6:00 pm. If your concern is that dealers won't arrive on Wednesday, they can come in at 7:00 am on Thursday or utilize our online inventory to browse options.
Our inventory will be available online if you can’t attend the auction sale day in person.
Continue to watch for updated inventory throughout the week to view what is available for the sale day ahead.
Are you ready to sell at an auto auction?
We walked through BVAA’s top 7 tips for Sellers at an auto auction. It is beneficial to adhere to as many of these tips as possible to increase your sales. Now that you read our top 7 tips for Sellers, you have the insight needed to maximize sales at an auto auction and make space on your lot for new inventory. If you’re ready to sell at BVAA, the Registration Guide is the source for your next steps.
For more information, please call us at (956)461-9000 or email us at registration@BigValleyaa.com
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