Where do Auto auctions get their cars from?
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US $530.00
repos and old fleet vehicles mostly
New and Used cars dealerships. They wholesale them for auction. Also private sellers.
ever notice how, the used car lot at a new car dealer never has any really old, crappy-looking cars, even though you know that every day people are trading in clunkers?
those trade-ins that the dealer won’t have on his own used car lot go to auction.
Due to my experience working with non-profits and car donation (tax deductible) programs, a decent number of the cars sold at auto auctions such as Copart Auto Auction come from non profits’ car donation programs. I’m sure other sources such as private party and fleet liquidation play a role too.
Trade-ins that dealers can not sell on their lots.
Depends on the auction. Dealer auctions get their cars from dealers, wholesalers, and brokers. Those are usually cars that are traded in that the dealer does not want to keep. Dealers auction cars when they don’t fit their market profile (A BMW at a Kia store, or 1 80k mile Hyundai at a Mercedes store). Also, when cars have been in inventory too long. A dealer may try to retail the car for 60-90 days. If it does not sell, its off to auction.
Those auctions also do a good business on lease-returns and finance company reposessions. When a lease is terminated, the leasing company will often send the cars to sale. Since they are banks, not dealers, they have to either auction, or get dealer participation to buy them back.
Copart (Whom I work for) and AIA are dealers in insurance recovery vehicles, theft recovery, reposession, donation and dealer cars. When a car is in an accident and the insurance company declares it a total loss, that is when we get it. Also, the bank repos we get are typically lower-end than you would find at a Mannheim or Brashers auction. We do get some cars from charity donation, but that is a VERY small fraction of the business.
The last auctions are public auctions. Those sales to teh public come from private individuals who need to sell a car, and dealers.
Hope that answers your Q
Yes, it is really the cost of the house. Although usually depending on who handles the auction there is a fee that is associated with filing, titlling and deeding expenses. Call the local county which the auction is being held.
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