by G.E. Robbins

Created on: November 01, 2007   Last Updated: January 24, 2012

First and foremost at most of the big name auctions you have to have a dealers license in order to buy and sell a vehicle at least that is way things are in Canada. As for the U.S. market it is pretty much the same.

There are many on-line car auctions as well. One on-line company uses the dealer to sell a customers car at trade-in. The dealer inputs all the information on the vehicle through the company's website which sends the vehicle info to wholesalers and buyers across the country. The premise is, every dealer has their own idea of what a vehicle is worth. One dealer may think a certain vehicle is worth $2500.00 while another one might think its worth $3000.00 while another may think its value is $1500.00. This is one reason why this type of auction is so valuable to the consumer.

Traditionally dealers will call one or two of their wholesalers to get a value for your vehicle. This on-line auction method can get the dealer up to 10 different bids on your vehicle and at least sixty percent of the time the value is higher then the price they would get from just calling one or two buyers. The plus side for the consumer is they actually get a better deal for the vehicle and in turn lower the price on the vehicle they wish to purchase. The dealer benefits as they don't have to keep the vehicle for inventory.

As with all auctions of this type, the price the consumer receives is a wholesale price. Remember the wholesaler knows exactly what they can sell that vehicle for in the retail market and most of them have their own dealerships, where they in turn sell it for a decent profit. But again the key benefit to this is the consumer is getting a fair market value for the vehicle. It also saves them the trouble of selling the vehicle themselves, which in turn can be a bit of a headache. There are many on-line auctions not quite the same as this one but just as good to sell your vehicle through and the cost is minimal.

Usually a small fee to post your vehicle and after it is sold, the company puts you in contact with the buyer. Again with this method it is important to provide full disclosure on your vehicle. For example, you must disclose if the vehicle has ever been in an accident and this can be verified by one simple check of the VIN number as all insurance companies are required to disclose this information. Also, if you have ever had the vehicle re-painted, what repairs if any are needed. Make sure the tires are road worthy and that you keep good service records. These points are most important as it will make or break the value of your vehicle and price you want to get.

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