HOTLINE 1-833-5AARHELP | | info@autoauctionreview.com
info@autoauctionreview.com
1-833-5AARHELP
CREATE AN ACCOUNT
LOGIN
PROFILE
REVIEWS
AUCTIONS
ABOUT
BLOG
CONTACT US
FILE COMPLAINT
WRITE A REVIEW
info@autoauctionreview.com
1-833-5AARHELP
REVIEWS
AUCTIONS
ABOUT
CONTACT US
FILE COMPLAINT
WRITE A REVIEW
LOGIN
PROFILE
CREATE AN ACCOUNT

Should the auction do a better job representing the vehicles they sell?

October 21, 2024

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.

Dane Hulse

President/Founder |  AAR

NAVIGATION
REVIEWS
ABOUT US
AUCTIONS
BLOG
CONTACT US
QUICK LINKS
CREATE AN ACCOUNT
WRITE A REVIEW
FILE COMPLAINT

  • My brother and I have attended the last 4 or 5 Mecum Auctions in Kissimmee- an annual "Boys Trip". We are both car guys (and me being in the business…

    Dane Hulse Mecum Auctions- Kissimmee, Florida

  • In Sept I bid/purchased a 2014 Jeep Grand Cherokee. It was deliver with some smoking, upper engine knocking and ticking noise and oil steadily drippin…

    Jeff Lewis OpenLane

  • As some may know, in addition to being the President and Founder of Auto Auction Review, I am a buyer for a dealer group in Atlanta, Georgia. I buy p…

    Dane Hulse DealerClub

  • I’m a small independent who is getting choked out to death financially by the big corporations including the big corporate auctions. I’m certain many …

    Rob Harrington Tallahassee Auto Auction

  • Read my complaint that I filed with AAR. Openlane at times has sketchy inspections, and their arbitration policy and process is terrible. They are s…

    Carl S. OpenLane

  • Americas Auto Auction in Pensacola: This is “my home auction” for about 20 plus years. It’s a great auction for the little guys who buy here in terms …

    Rob Harrington America’s Auto Auction of Pensacola

  • Long Beach Auto Auction scores again with me. Bought one today ordered my first post sale inspection on a qualified unit. LBAA informed me that…

    Rob Harrington Long Beach Auto Auction

  • I am a small wholesale dealer who sells all of my cars at Manheim Georgia. Recently I sold a Kia Sorento to a large buyer, and the unit went through …

    Tony Schuble Manheim Georgia

  • What an awesome website! (My first time here!) I wanted to give a huge congratulatory message regarding Long Beach Auto Auction in Mississippi. About …

    Rob Harrington Long Beach Auto Auction

  • Great Auction, Amazing People…

    Roger Stehr State Line Auction
WRITE A REVIEW
Go to Top