How much do auto dealers pay at auctions?

7 Comments

1. Brother B says:

   March 9, 2010 at 3:12 am

   Dealers are normally not allowed at auctions. They get vehicles straight from the manufacturers, though some do sneak into an auction and get various rides. They also get vehicles from the trade-ins.

   Whether at an auction or from the manufacturer, it’s at least a few thousand less than what consumers pay (much more at an auction). Dealers have to make money too. Which is why you have to shop around….or head to an auction yourself.
2. RunningMan² says:

   March 9, 2010 at 4:06 am

   Dealers pay the wholesale price from the kelly bluebook and generally charge high retail or try to at least.
3. rounder90815b says:

   March 9, 2010 at 4:28 am

   That particular car would be bought at about 3 grand back of wholesale book. So what you need to do since you know the specifics of the car go to Edmund’s or kbb and put in the options and mileage on the car you are looking at get the wholesale book and subtract about three grand. Now keep in mind that’s what they paid for it there is still a cost incurred for smog and any other repairs that the car may have needed and most dealerships put about a 500 pack on used so if you could get the car for 1,000 to 1,500 back of wholesale you got a good deal.(I work in the auto sale business)
4. Shaq iz Phat says:

   March 9, 2010 at 5:02 am

   Dealers get their cars from DEALER-ONLY auctions…. where only those with a dealer license can get in. It’s not open to the general public.

   They don’t use the Blue Book… they use what’s called the Black Book, which lists prices that are much lower than the Blue Blook.

   So don’t be surprised if the dealer paid $5000 for that ‘02 Jetta that’s he’s now selling for $12000.
5. Philip M says:

   March 9, 2010 at 5:21 am

   After a few years, vehicles become less of a commodity and more unique based on the previous owner. There is a lot of variability in the amount dealers pay based on odometer, trim package, evidence of accidents, condition of interior, tire condition, region of the country, attendance at the auction, and even the run order of the cars at the auction. If you see an average number reported on a web site like kbb or edmunds, you’re not getting the full picture. The standard deviation on this measure of central tendency can be huge.

   You can get some idea about the average wholesale value of the vehicle from the NADA black book or the Kelley Blue Book. Your credit union should be able to give you this figure. But again, this is not an important number. You really need to find a mechanic you trust and a seller willing to let you take the car to a trusted mechanic before you buy the car. If the seller won’t allow this, go somewhere else. If you’re buying the car on-line, be sure to get a certification and “named exclusion” warranty. A “named exclusion” warranty is like a new car warranty where the agreement tells you what is not covered rather than what is covered.

   Good luck
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