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How Much Cheaper Are Cars Sold at Dealer auctions?

How Much Cheaper Are Cars Sold at Dealer auctions?

Dealer101 experts claim that you will save thousands of dollars and win in terms of the quality of the car if you buy it at a dealer auction.

So, how much cheaper are cars sold at dealer auctions compared to public auctions? The American company Dealer101 conducted a study, the results of which suggest that savings can reach 20% or more, in other words, you'll save $4,000 on a $20,000 car. "If you are flexible in your buying choices, you can take advantage of much larger savings," the company's statistics report says.

It should be noted that dealer only auctions are the main supplier of used car for dealerships trading in used American cars which is a testament to the reliability of these marketplaces.


Vehicles offered for online auctions are divided into several categories.

  1. Trade-in cars. For example, a dealer-seller had an excess of vehicles or a specific vehicle that did not fit the line of cars offered, and they decided to exchange it.

  2. Cars after lease - the car’s 2-3 year lease period expired and the leasing company wants to sell it.

  3. Repossessed cars - banks and other credit organizations want to sell these to recoup some of the losses.

  4. Used and damaged cars - these are often bought for repair and subsequent resale or are stripped for parts.

What condition are the cars at dealer auto auctions in?


Dealer only auctions feature a wide variety of vehicles. Most marketplaces specialize in specific categories: used cars, recent models, exotic or expensive cars.

Dealer101 particularly recommends auto auctions such as Manheim and Adesa that feature undamaged vehicles with clear titles. Some vehicles even have the manufacturer's warranty.

The recent trend sees more and more "Frontline Ready" cars - that is those ready for use - being available at dealer only auctions. As a rule, they come with Condition Reports which can be viewed online before the auction. They provide details on all the past issues the car might have had, indicate points that will require increased attention in the future, even if it is just paintwork.

The reasons for it were clearly explained by Randy Kobat, senior Vice President of vAuto, HomeNet, Rebates & Incentives. Namely he stated: "If you can provide the consumer with information about what makes a particular car stand out, what repair work has been done, you're on your way to success."

Consumer confidence should also depend on the restoration methods. That's why many dealers do their own restoration using advanced software such as iRecon to reduce repair time and improve quality.

Who can buy from dealer only auctions?


Dealer only auctions are closed to the general public. Only licensed dealers can take part in them.

Obtaining the appropriate license is not an easy feat. In particular, you need to regularly confirm that buying cars for resale is your main business and not a side thing, otherwise it can be revoked.

Fortunately, some dealers, including Columbus, offer an intermediary brokerage service. This makes it possible for ordinary consumers to buy cars with dealer discounts, sometimes reaching 30% of the retail cost of the car.

Using Columbus' "A" Dealer Account on online auctions, the company's customers can purchase a car at the lowest possible price, as well as find a car with a detailed history of operation and accurate information about its technical condition.

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Call Columbus managers and get cars with amazing dealer discounts! The company's experts are available 24/7.

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