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Whether you attend in-person auctions or prefer the flexibility of online bidding, it’s important to have a strategy in place that’ll give you the highest chance of securing the best stock.
Offering insights on the best ways to win at auction, John Hood, General Manager at Auction4Cars.com, shares four ways to secure your first-choice vehicles.
Prepare, or prepare to fail
“You want to make sure you’re going into an auction with research to back up your bidding strategy. Before you bid on stock, be sure to target the vehicles with the highest profit potential based on current market data. Some of the best sources for your research are SMMT or Autotrader. From there, you could look across used market platforms at retail ratings, average days to sell and estimated profit margins to find the stock that’ll bring in the most value.
“I would always check the retail price of a vehicle because real-world prices can vary hugely from the guide prices. Then, you’ll know what margin you can aim for after taking fees, refurbishment and transport costs into account.
“I’d also recommend using your internal data to leverage your buying strategy. Look at which vehicles have the highest demand and the quickest sales as demand evolves with car-buying trends. Allow this to influence where to invest your money.”
Use these bidding techniques
“Online auctions give independent dealers more flexibility and save time compared to in-person auctions. Automated bidding can give you the edge by handling the hard work when you’re busy in other parts of the business.
“Proxy bidding is a type of automated bidding that sticks to your set max budget. It allows dealers to remain active in an auction while away from their phone or computer without the worry of overspending at auction. This means dealers don’t need to monitor each auction manually, letting you check in on progress as and when needed.
“To avoid missing out at the last minute, some platforms add time onto the auction if a bid is placed in the last few seconds. At Auction4Cars.com, any bids placed in the last 30 seconds of an auction will automatically trigger an additional 30 seconds to be added to the end time, giving you the option to jump in with a last-minute bid.”
Manage your risk level
“I always recommend leading with data to have a low-risk, strong-performing strategy.
“Always prioritise margin over volume to create a clear and consistent strategy. Set strict, pre-determined budgets that account for reconditioning and any additional fees. Using online auctions helps to manage your budget better by capping spending.
“The only time I wouldn’t stick to my maximum budget would be for anything rare or more specialised that had potential to bring in significant profit.”
Diversify your sources
“Keeping an eye on different stock sourcing platforms will tell you how the market is moving. You’ll also be less likely to miss out on desirable vehicles. I would suggest never relying fully on traditional auctions, as they don’t move at the same pace as their digital counterparts. Online auctions allow you to bid across auctions at the same time while giving you time back in your day.
“To maximise success, also keep an eye on online wholesalers and trade-ins day to day, too, alongside closed dealer networks. They give you direct access to stock that often has lower competition, where you can sometimes get a good bargain.”
For more information and to browse the hundreds of live auctions, visit: https://www.auction4cars.com/
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Auction4Cars.com
Auction4Cars.com is the UK’s leading independent trade car auction site, selling over 30,000 vehicles a year to dealers throughout the UK.
Auction4Cars.com offers dealers the chance to bid on vehicles in just a few clicks. With some of the lowest auction fees on the market and each car expertly appraised, Auction4Cars provides a cost-effective way for dealers to fill their forecourts.
Exclusively for the trade, Auction4Cars.com has no sign-up or annual fees and dealers can have their application approved within two business days.
For more information, visit: https://www.auction4cars.com/