The cancellation emails keep flooding into your inbox— “We regret to inform you,” “With the current climate,” “In lieu of these challenging times…” one right after another.
Giants like Barrett-Jackson and Monterey Car Week shut their doors to hopeful car-buying enthusiasts. And it’s worse for you—you just got your wholesale dealer license and were hoping to attend car auctions…what to do now?
It’s time to adapt.
Car auctions may not be happening in person, but the internet is as lively as ever, displaying dream cars from just behind the screen. With online car auctions in full swing, you need to prepare yourself for some digital bidding.
US Dealer Licensing, a wholesale dealer license company with over 30 years of experience, has 5 tips to help you get the most out of your online auction. Get to online buying with confidence!
Tip #1 Know the Costs of Attending
You find the car of your dreams, run through some quick calculations in your head and discover that you have just enough budget to purchase it…
…that is until the auction house plops down their fee.
Before attending any online auction, make sure that you know what premium an auction house will charge. In addition to premiums, auctions may charge you a fee when registering to attend.
Just like at a dealership, always keep in mind the possibility of additional hidden or house fees.
Tip #2 Do Research Ahead of Time
At a physical auction, only so much space is available, which means only so many cars can be sold at one time. On the other hand, at an online auction, those rules are thrown out the window.
Imagine having thousands of cars to choose from! Feeling overwhelmed yet?
Before attending any auction, conduct research on cars you want to purchase ahead of time. What makes are you looking for? Models? Years? Colors?
By having a hit list of ideal vehicle types, your perusing list can be shrunk from thousands to hundreds to just a handful—making the bidding process easier for you.
Tip #3 Set a Maximum Bid
Ughhh, here comes the “be responsible with your financing” advice…
We hate to say it, but set a budget and stick to that budget.
It can be easy to get lost in the craze of online bidding. As you watch the bids continually tick up, you may be tempted to throw more skin in the game, but be patient—deals are always around the corner!
Instead of immediately bidding by large amounts, try using odd numbers. Instead of bidding $800 try $801 or $955 compared to $950. Your dream may be more attainable than you think it is, just be bidding a few bucks higher.
Tip #4 With Mileage Comes Wear
Since you already followed Tip #2, you completed research on your dream car ahead of time, but this time, we need you to take that research a step further.
It’s no surprise that as the mileage in a car rises, so do repair expenses due to wear and tear. Conduct research to see what parts typically need replacing at what time.
If you know your dream car’s water pump typically needs replacing at 75,000 miles and the car in the auction has 72,000 miles, you may want to factor that into your bottom-line bid price. Common car parts that need replaced due to wear and tear are tires, batteries, fuses, brake rotors, and more! Call up your local mechanic for more ideas on what to consider when factoring in repair costs.
Tip #5 Have a Little Help From Your Friends
As hard as you try (trust us, we see you trying), you can’t be the master of everything.
If you’re not as car-savvy as your buddies or your neighbors, that’s okay, you can still attend an online car auction! Find someone who knows a lot about the vehicles that you are interested in and invite them over!
With two sets of eyes browsing an online auction, you have a higher chance of finding a vehicle that’s suited for you (and avoiding the ones that are not). And, trust us, your friends will be happy to help…but providing snacks and beverages wouldn’t hurt.
Bonus Tip—Consider Getting a Wholesale Dealer License
You know that online car auction that you’ve been reading about for months? It’s finally time to register! As you eagerly pull up the form, you’re met with big, black text that states: All Participants Must Hold a Wholesale Dealer License.
A wholesale dealer what?A wholesale dealer license allows you to buy and sell vehicles directly with dealers. This license also allows you to purchase vehicles in bulk, as well as import and export cars. For help getting a wholesale dealer license, contact US Dealer Licensing at (888) 344-5570 for more information. And the next time you attend an online auction, just relax and remember the 5 tips above!