Following up on my segment, “Are you happy with the quality of inventory at auctions?”

Let’s dig into this critical topic…

What responsibility does the auction really have when it comes to representing the seller’s vehicles?

It doesn’t take much to figure out if dealers are getting what they pay for.

One of our dealers recently took a closer look at his group’s costs over a year’s purchases at his auction, finding some staggering numbers…

-Average buy fee, Simulcast fee, and Deal Protection: $885/unit.

-Add in transport: $970 (local) to $1235 (non-local).

So, each time you raise your hand or click a button, you’re adding $1000+ to your cost.

Fees are high, sure.

-Deal Protection? Necessary evil.
-Simulcast fees… still going strong after 22 years.

What do dealers really get for this?

-No free CRs (they’re $35).
-PSI fees (sometimes included with Deal Protection ( but another $200+).

And if a vehicle fails PSI, the buyer still pays the fee!

Buyers today are much more than the classic “Black Book in the back pocket” type.

One buyer shared his group’s buying process, highlighting just how demanding the role has become:

-Use vAuto or Stockwave to identify needed inventory.
-Search saved listings.
-Source vehicles in-lane or online.
-Pair inventory with Profit Time.
-Purchase via Simulcast, ACV, Openlane, or Dealer Club.
-Submit BOS.
-Manage transport and stock vehicles.
-Oversee recon and approve/decline work.
-Manage listings in vAuto (descriptions, pricing, etc.).

This isn’t the old-school buyer who hits the auction in the morning and is on the golf course by 2 p.m.

It’s a far more demanding role today.

Time is money.

Do buyers have the time to handle all these duties AND manage a 10-20% arbitration rate?

Even with DealProtection products and Post-Sale Inspections, this buyer still claims an arbitration rate nearing 20% at times.

So…

-Should auction houses do a better job representing the vehicles they sell?
-Should pre-sale inspections be mandatory?
-Should sellers with high arbitration rates be penalized?
-Should CRs cover basic mechanical issues?

What else could auctions do to protect buyers?

How might this change seller behavior?

Let me know your thoughts in the comments below.