Auto auctions are a method of selling new, and most often, used vehicles A used car, a pre-owned vehicle, or a second hand car, is a vehicle that has previously had one or more retail owners. Used cars are sold through a variety of outlets, including franchise and independent car dealers, rental car companies, leasing offices, auctions, and private party sales. Some car retailers offer "no-haggle prices," & based on auction An auction is a process of buying and selling goods or services by offering them up for bid, taking bids, and then selling the item to the highest bidder. In economic theory, an auction may refer to any mechanism or set of trading rules for exchange system. Auto auctions can be found in most nations, but are often unknown to most people. This is, such as in the case of the United States ^ b. English is the de facto language of American government and the sole language spoken at home by 80% of Americans age five and older. Spanish is the second most commonly spoken language, because this a protected source for used car dealers. In other countries, such as Japan Japan is an island country in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south. The characters that make up Japan's name mean "sun-origin", which is why Japan is, auto auctions are well known and used (indirectly) by most people.
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Country specific
Japan
Auto auctions are the most popular method to sell used vehicles in Japan. Most customers are Japanese seeking a cheap vehicle to start with or replace their older vehicle. Also there many also trying to sell their vehicles. Individuals though cannot directly use auto auctions, but must go through those holding auction membership. In Japanese law, only dealerships may become members to auto auctions. The way the system is set up allows people to have access to information, but keep the auctions orderly with only professionals actually able to bid.
A small percentage of the dealers that are members of Japanese auto auctions are also used vehicle exporters Japanese used vehicle exporting is a large component of international trade, which involves the export of used cars and vehicles from the Japanese domestic market , to numerous markets around the world. Despite the high cost of transport, the sale of used cars and other vehicles to other countries is still profitable, due to the relatively low that most often use the auto auctions as their primary source of used vehicles. Other than these exporters, most members are used vehicle dealership that sell in Japan and are used by Japanese people to find a car they want.
In Japan there are over 30 well known auto auction groups and over 200 auto auction locations throughout Japan.[1] Additionally, there are more smaller auctions held for specialized items.
United States
In the USA, auto auctions are relatively unknown to the public at large, but play a major role as a wholesale market for second-hand vehicles. Most auto auctions are closed auctions, meaning only dealers can use them. There are also auctions that are open to the public. These auctions are a primary outlet for financial services Financial services refer to services provided by the finance industry. The finance industry encompasses a broad range of organizations that deal with the management of money. Among these organizations are banks, credit card companies, insurance companies, consumer finance companies, stock brokerages, investment funds and some government sponsored firms to dispose of their large volume of off-lease A lease is a contract calling for the lessee to pay the lessor (owner) for use of an asset. A rental agreement is a lease in which the asset is tangible property. Leases for intangible property could include use of a computer program (similar to a license, but with different provisions), or use of a radio frequency (such as a contract with a cell- returns, for rental A car rental or car hire agency is a company that rents automobiles for short periods of time for a fee. It is an elaborate form of a rental shop, often organized with numerous local branches (which allow a user to return a vehicle to a different location), and primarily located near airports or busy city areas and often complemented by a website and other companies to sell off their aging fleets and for car dealerships A car dealership or vehicle local distribution is a business that sells new and/or used cars at the retail level, based on a dealership contract with an automaker or its sales subsidiary. It employs automobile salespeople to do the selling. It may also provide maintenance services for cars, thus employing automobile mechanics, stock and sell spare to dump In economics, "dumping" can refer to any kind of predatory pricing. However, the word is now generally used only in the context of international trade law, where dumping is defined as the act of a manufacturer in one country exporting a product to another country at a price which is either below the price it charges in its home market or trade-ins or other unwanted inventory Inventory is a list for goods and materials, or those goods and materials themselves, held available in stock by a business. It is also used for a list of the contents of a household and for a list for testamentary purposes of the possessions of someone who has died. In accounting inventory is considered an asset. Some auctions in the United States are used by banks Banking is generally a highly regulated industry, and government restrictions on financial activities by banks have varied over time and location. The current set of global bank capital standards are called Basel II. In some countries such as Germany, banks have historically owned major stakes in industrial corporations while in other countries, the IRS The Internal Revenue Service is the cartel revenue service of the United States federal government. The agency is a bureau of the Department of the Treasury, and is under the immediate direction of the Commissioner of Internal Revenue. The IRS is responsible for collecting taxes and the interpretation and enforcement of the IRC (Internal Revenue, and other government agencies A government agency is a permanent or semi-permanent organization in the machinery of government that is responsible for the oversight and administration of specific functions, such as an intelligence agency[citation needed]. There is a notable variety of types of agency. Although usage differs, a government agency is normally distinct both from a to sell vehicles that were repossessed Repossession is generally used to refer to a financial institution taking back an object that was either used as collateral or rented or leased in a transaction. Note that repossession is a "self-help" type of action in which the party having right of ownership of the property in question takes the property back from the party having for failure to make monthly payments or pay taxes, or were seized by the FBI The Federal Bureau of Investigation is an agency of the United States Department of Justice that serves as both a federal criminal investigative body and an internal intelligence agency. The FBI has investigative jurisdiction over violations of more than 200 categories of federal crime. Its motto is "Fidelity, Bravery, Integrity",, DEA The Drug Enforcement Administration is a law enforcement agency under the United States Department of Justice, tasked with combating drug smuggling and use within the United States. Not only is the DEA the lead agency for domestic enforcement of the Controlled Substances Act, sharing concurrent jurisdiction with the Federal Bureau of Investigation,, or the police The police are persons empowered to enforce the law, protect property and reduce civil disorder. Their powers include the legitimized use of force. The term is most commonly associated with police services of a state that are authorized to exercise the police power of that state within a defined legal or territorial area of responsibility. Police. Also, there are some that sell US Government The federal government of the United States is the central government entity established by the United States Constitution, which shares sovereignty over the United States of America with the governments of the individual U.S. states. For official purposes in U.S. courts, the government is sued as the United States of America, and is referred to vehicles. Finally, there are those catering to the salvage market where insurance In law and economics, insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the insurance; an insured or policyholder is the person or companies sell totaled Totaled is a term used in the insurance industry. In the US, when a vehicle is damaged and the cost of repairs and the salvage value combined would exceed the current value of the vehicle, the insurance company may declare it totaled. Generally, the insurance provider will only pay out the lesser cost of buying a replacement vehicle, instead of vehicles.
Online auto auctions are also growing in popularity. One of the most popular online car auctions is eBay eBay Inc. is an American Internet company that manages eBay.com, an on-line auction and shopping website in which people and businesses buy and sell a broad variety of goods and services worldwide. Founded in 1995, eBay is one of the notable success stories of the dot-com bubble; it is now a multi-billion dollar business with operations localized. On eBay Motors, any user can create an account and put their vehicle(s) up for auction. There is usually a small fee A fee is the price one pays as remuneration for services. Fees usually allow for overhead, wages, costs, and markup associated with selling your vehicle on eBay. As of September 2008, there is a $20 insertion fee, which is waived for the first four listings in a 12-month period (relisted vehicles using the official eBay Relist feature do not count toward the listing count), and a $125 successful listing fee charged when the listing receives bids above the set reserve price ($100 for the 5th+ listing) for passenger vehicles [2]. If there are no bids on your vehicle, or if none of the bids meet your reserved price (setting a reserve price will cost you $7 per listing), you will not be charged the successful listing fee. Buying a car on eBay is even simpler. All you need to do is create an account, then proceed with bidding on your desired vehicle. Some automobiles will have a 'Reserve Price In microeconomics, the reservation price is the maximum price a buyer is willing to pay for a good or service; or, conversely, the minimum price at which a seller is willing to sell a good or service. Reservation prices are commonly used in auctions' which is the minimum price the seller will accept for the vehicle. If the reserve price is not met, the vehicle will be considered unsold. The bidding on some cars, particularly popular cars with a low reserve, can become fierce. Bids may be entered up to the very last second.
Car dealer auctions
A Car dealer auction is a specialized form of auction An auction is a process of buying and selling goods or services by offering them up for bid, taking bids, and then selling the item to the highest bidder. In economic theory, an auction may refer to any mechanism or set of trading rules for exchange.
Millions of vehicles A vehicle is a device that is designed or used to transport people or cargo. Most often vehicles are manufactured (e.g. bicycles, cars, motorcycles, trains, ships, boats, and aircraft) are sold at dealer auto auctions every year.[3] These auctions are restricted for the general public and only licensed dealers can participate. Prices of vehicles sold at dealer auctions tend to be lower than those advertised on any dealer’s lot. Sellers forgo a potentially higher sticker price to take their inventory Inventory is a list for goods and materials, or those goods and materials themselves, held available in stock by a business. It is also used for a list of the contents of a household and for a list for testamentary purposes of the possessions of someone who has died. In accounting inventory is considered an asset to a dealer auction where it will be auctioned off for thousands less than retail Retailing consists of the sale of goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser. Retailing may include subordinated services, such as delivery. Purchasers may be individuals or businesses. In commerce, a "retailer" for a number of reasons.
Maintaining aging inventory costs dealers both money and reputation. Most vehicles sold are off-lease A lease is a contract calling for the lessee to pay the lessor (owner) for use of an asset. A rental agreement is a lease in which the asset is tangible property. Leases for intangible property could include use of a computer program (similar to a license, but with different provisions), or use of a radio frequency (such as a contract with a cell- returns, replaced rental Renting is an agreement where a payment is made for the temporary use of a good, service or property owned by another. A gross lease is when the tenant pays a flat rental amount and the landlord pays for all property charges regularly incurred by the ownership from lawnmowers and washing machines to handbags and jewellry fleets Fleet vehicles are groups of motor vehicles owned or leased by a business or government agency, rather than by an individual or family. Typical examples are vehicles operated by car rental companies, taxicab companies, public utilities, public bus companies, and police departments. In addition, many businesses purchase or lease fleet vehicles to, company cars, repossessed vehicles, and trade-ins.[4]
- Off-lease: vehicles returned to the financial institution at the end of a lease A lease is a contract calling for the lessee to pay the lessor (owner) for use of an asset. A rental agreement is a lease in which the asset is tangible property. Leases for intangible property could include use of a computer program (similar to a license, but with different provisions), or use of a radio frequency (such as a contract with a cell- term. Closed auctions are usually the only venue for such financial institutions In financial economics, a financial institution is an institution that provides financial services for its clients or members. Probably the most important financial service provided by financial institutions is acting as financial intermediaries. Most financial institutions are highly regulated by government to dispose of a large volume of end-of-lease returns. The terms of a lease normally put a restriction on the number of miles driven, require regular maintenance and penalize for excessive wear. Usually, off-lease vehicles are returned within 2–3 years, often before their original factory warranty In commercial and consumer transactions, a warranty is a collateral assurance or guarantee that certain facets of an article or service sold is as factually stated or legally implied by the seller, and that often provides for a specific remedy such as repair or replacement in the event the article or service fails to meet the warranty. A breach of expires.
- Off-rental: rental A car rental or car hire agency is a company that rents automobiles for short periods of time for a fee. It is an elaborate form of a rental shop, often organized with numerous local branches (which allow a user to return a vehicle to a different location), and primarily located near airports or busy city areas and often complemented by a website companies normally replace their fleets once a year, releasing a flood of late-model A "late model car" is a car which has been recently designed or manufactured, often the latest model. The term is broadly used in car racing, and often appears in common use, as in "The officer was driving an unmarked, late model sedan." cars to the secondary market The secondary market, also known as the aftermarket, is the financial market where previously issued securities and financial instruments such as stock, bonds, options, and futures are bought and sold.. The term "secondary market" is also used to refer to the market for any used goods or assets, or an alternative use for an existing. Like the big financial institutions that underwrite Underwriting refers to the process that a large financial service provider uses to assess the eligibility of a customer to receive their products (equity capital, insurance, mortgage, or credit). The name derives from the Lloyd's of London insurance market. Financial bankers, who would accept some of the risk on a given venture (historically a sea car leases, rental companies also rely on auto auctions to sell off their used inventory. These vehicles tend to be well maintained and driven for only one year. Mileage tends to accumulate quickly on a rental car. Optional features are limited to an A/C Air conditioning is the cooling of indoor air for thermal comfort. In a broader sense, the term can refer to any form of cooling, heating, ventilation, or disinfection that modifies the condition of air. An air conditioner is an appliance, system, or machine designed to stabilise the air temperature and humidity within an area (used for cooling as and automatic transmission An automatic transmission is a motor vehicle transmission that can automatically change gear ratios as the vehicle moves, freeing the driver from having to shift gears manually. Similar but larger devices are also used for heavy-duty commercial and industrial vehicles and equipment, but these cars are otherwise as close to the base model as they can get. Usage of rental cars is rough; it is safe to assume that during that first year each rental car will be driven by a normal distribution In probability theory and statistics, the normal distribution, or Gaussian distribution, is an absolutely continuous probability distribution with zero cumulants of all orders above two. The graph of the associated probability density function is “bell”-shaped, with peak at the mean, and is known as the Gaussian function or bell curve:[note 1] of all types of drivers in all kinds of conditions.
- Company/fleet cars: companies of varying sizes own or lease cars, trucks A lorry or truck (American English) is a motor vehicle designed to transport cargo. Trucks/lorries vary greatly in size, power and configuration, with the smallest being mechanically similar to an automobile. Commercial trucks/lorries can be very large and powerful, and may be configured to mount specialized equipment, such as in the case of fire or vans A van is a kind of vehicle used for transporting goods or groups of people. It is usually a box-shaped vehicle on four wheels, about the same width and length as a large automobile, but taller and usually higher off the ground, also referred to as a light commercial vehicle or LCV. However, in North America, the term may be used to refer to any that they typically keep for two or more years, although it is not uncommon to see current year models sold at the auctions. Adequate maintenance and large volumes of similar vehicles are typical characteristics. Like rentals, these fleet vehicles do not have many extras and get thoroughly exploited on a daily basis. Unlike rentals, usage of company cars varies greatly from the executive luxury sedan A sedan car or saloon car (British English) is a passenger car with two rows of seats and adequate passenger space in the rear compartment for adult passengers. The vehicle usually has a separate rear trunk (boot in British English) for luggage, although some manufacturers such as Chevrolet, Tatra, and Volkswagen have made rear-engined models. It driven slowly and carefully on occasion to the delivery truck that regularly mounts curbs and gets abused in city traffic.
- Repossessed: vehicles can be voluntarily or involuntarily repossessed Repossession is generally used to refer to a financial institution taking back an object that was either used as collateral or rented or leased in a transaction. Note that repossession is a "self-help" type of action in which the party having right of ownership of the property in question takes the property back from the party having by financial institutions for delinquency In other cases, a delinquent is a person who fails to pay a debt or other financial obligation, like a mortgage. Failure to cure a delinquent payment can result in repossession or foreclosure. Accounts that are not current are also known as delinquent accounts or another reason for recall. Auto auctions are again the bank’s only option for deliverance. Repossessed vehicles can feasibly sell for less because the financial institution disposing of them only seeks to offset its losses (also restricted by federal regulations). The condition of such cars may be compromised by neglect; if the owner can't pay the loan, repairs could also be neglected. There is also the potential for sabotage Sabotage is a deliberate action aimed at weakening another entity through subversion, obstruction, disruption, or destruction. In a workplace setting, sabotage is the conscious withdrawal of efficiency generally directed at causing some change in workplace conditions. One who engages in sabotage is a saboteur. As a rule, saboteurs try to conceal from ill-meaning previous users (e.g., extensive keying or tearing of the interior).
- Trade-in: dealer inventory that is aging or does not meet their profile (e.g., an old Toyota Avalon The Toyota Avalon is a full-size car produced by Toyota in the United States, and is the flagship sedan of Toyota in the United States, Canada, Puerto Rico and the Middle East. It was also produced in Australia until July 2005 when it was replaced in November 2006 by the Toyota Aurion. The first Toyota Avalon rolled off the assembly line in that was traded in for a new CLK350 Cabriolet at a Mercedes-Benz Mercedes-Benz is a German manufacturer of luxury automobiles, buses, coaches, and trucks. It is currently a division of the parent company, Daimler AG (formerly DaimlerChrysler AG), after previously being owned by Daimler-Benz. Mercedes-Benz has its origins in Karl Benz's creation of the first petrol-powered car, the Benz Patent Motorwagen, franchised Franchising is the practice of using another firm's successful business model. The word 'franchise' is of anglo-french derivation - from franc- meaning free, and is used both as a noun and as a verb dealership). Traded-in cars may have useful extras and sometimes even after market modifications. The overall condition of such vehicles varies greatly. Some may be considerably older and out of warranty.
- Salvage: vehicles that have been in accidents, floods, fires or recovered thefts that have been purchased by insurance companies. The insurance companies sell these vehicles to dealers or body shops who will fix them and resell them, or auto recyclers who will part out the remaining parts of the vehicle that haven't been damaged.
Among these types of vehicles there are a number of quality cars ready to market. Late models with remaining factory warranty are not uncommon. The law requires listing dealers to disclose bigger mechanical problems, which may void the manufacturer’s warranty and classify the vehicle as junk, salvage, lemon/consumer buy-back, etc. There are special auctions for these types of vehicles (salvage, rebuilt or junk vehicles), sold mostly by insurance companies. Other types of auctions specialize in the sale of police or government cars; some of those actually allow public access.
Pricing. Regardless of their source, vehicles are sent to auction with the main purpose to be sold quickly and hassle-free, and this usually happens at prices that dealers can easily recoup with a small profit from a resale. Contrary to popular belief, cars seldom sell for unreasonably low prices at the dealer auctions. This may happen if there are not enough interested bidders or if the vehicle is exceptionally unattractive and should not be taken for granted. Many sellers put reserve prices on their stock specifically to prevent this from happening. The reserve price is not disclosed publicly and a “winning” auction bid is only considered a sale if the reserve price is met. Sellers have the option to re-list vehicles that did not sell at a particular auction.
Condition. As with any used vehicle, overall vehicle condition varies greatly. Many aspects of the vehicle appearance may suffer in the term of everyday use and result in any of the following damages: stained or otherwise used upholstery, scratched bumpers, dings on the doors, chipped hood, dented quarter panels. Most of these can be fixed with touch-up paint and/or a dent removing kit. Scraped wheels and worn tires may cost more to repair or replace.
Inspection. Pre-sale vehicle inspection or test-driving is not allowed at some of the auctions. Mechanics and guests are not usually allowed to see the cars until after the sale is completed. Some auction locations inspect and prepare the cars for sale if the listing dealer so chooses (at a premium). More extensive reconditioning is also available. Many auctions offer (for a fee) post-sale inspections for qualifying vehicles which can determine mechanical or frame damage issues which allow the buying dealer a window of opportunity to back out of the purchase. On the other end, sellers can also (for a fee) have their vehicles pre-sale inspected which allows purchasing dealers to buy with confidence that the vehicle passed a pre-sale inspection and if free of any mechanical or frame damage issues.
Notes
- ^ Japanese Used Car Exporting - Auto Auctions in Japan
- ^ source: eBay Motors
- ^ http://manheim.com/about/ About Manheim Auto Auctions
- ^ Sawyers, Arlena (19 March 2001). "Dealer creates wholesale auction". Automotive News (75.5921): 30. ISSN 00051551. http://findarticles.com/p/articles/mi_hb6674/is_200103/ai_n26655383/?tag=content;col1. Retrieved 6 March 2010.
References
- "Chapter 4. Buying A Vehicle At Auction". NAAA.com. National Auto Auction Association. 2010. http://www.naaa.com/i4a/pages/index.cfm?pageID=3382. Retrieved 6 March 2010.
- Edgerton, Jerry (1 May 2006). "Auto Auctions: Prices Influence What You Pay for Cars". Home & Family Finance® Resource Center. Credit Union National Association Inc. http://hffo.cuna.org/12433/article/1170/html. Retrieved 6 March 2010.
- Wernle, Bradford (29 April 1996). "Auction evolution: from dealer disposal to industry redistribution.(The 100-Year Almanac and 1996 Market Data Book)". Automotive News (5656). ISSN 00051551. http://findarticles.com/p/articles/mi_hb6674/is_199604/ai_n26641214/?tag=content;col1. Retrieved 6 March 2010.
Categories: Auctions and trading | Automotive industry
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Thu, 10 Jun 2010 16:45:03 GMT+00:00
PR-inside.com (press release) The auto dealers market consists of new and used passenger registered cars, as well as registered light commercial vehicles, sold through car dealerships or ...
DAN VOORHIS
Fri, 04 Jun 2010 11:28:00 GM
Auctioneer Lonn McCurdy announced "the bidding is concluded" and . car dealer. Les Eck smacked his fist into his palm in celebration. He had just bought Riverside Airport.
Q. where can I get a list of car auctions for dealer with in u.s.a.?
Asked by hery_elvampiro@sbcglobal.net - Sat Apr 22 00:23:28 2006 - - 3 Answers - 0 Comments
A. If I read the question correctly, you are looking for dealer only auto auctions. Two of the biggest auction companies, that is a good place to start. There are also independent auctions, do a google search.
Answered by fire4511 - Sat Apr 22 09:04:52 2006
