Used car dealers: is Manheim the more expensive auction to purchase from?
I’m a few weeks away from opening my first used car business within Canada, however Manheim is an international used vehicle auction. I was wondering if it is also considered one of the cheapest auctions for purchasing vehicles. I have access to their website and I am overlooking the sale prices of the vehicles and the vehicles are more expensive than I originally anticipated.
So, if there are any used car dealers here: do you find Manheim as being a cheaper auction to buy from within your area?
they are all about the same on car prices.
Manheim, Adessa, Brashers, – about the same.
Problem is that quality used cars are hard to find right now. ANd dealers are stepping all over themselves to get whats out there to put on their lots. I attended a sale in Sacramenton on Tuesday. There were 209 cars, and over 600 bidders.
THAT is why the prices are higher than you anticipated. Look at Copart as well. They mainly do insurance cars, but there are also a lot of clear title, run and drive cars to be had there.
Good luck
Cars sold at auctions that are open to the general public will probably end up selling for more than ‘dealer only’ auctions. That’s because non-dealer buyers would be willing to bid higher on a car they want to own rather than a dealer who is looking to make a profit by reselling the car.
I’d look for auction houses that sell to dealers only, as you have a better chance of buying stock at wholesale prices.
Big auctions like Manheim & Adesa and known as “retail” auctions because cars bring so much when there are competitive bidders. (Even though they are supposedly “dealer only” auctions)
You will see lots of retail buyers at most sales. They pay dealers to bring them.Complete with their “edmunds used car price guide” direct from the bookstore.
Smart dealers SELL at the big auctions and buy directly from new car dealers and/or much smaller dealer auctions.
Unless you know what you are doing, you are likely to overpay anywhere you buy for the first 6 months or so.
Your first few years actually, if you last, you will look back & laugh at how little you knew.
Just because you got a license and have a lot doesn’t mean you are “ready”. You have a whole lot of expensive eduction ahead of you.
That doesn’t mean you wont make money, its just you will make far less than if you were a much better buyer.
I used to go to 3-4 auctions a week,even when I had no intention of buying anything.
That’s how you KNOW a bargain when you might see one.