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Buy Used Cars At Online Auto Auctions

Every year, the internet is responsible for more and more commerce both locally and worldwide.  However, many people still do not consider the internet to be a viable marketplace to find and purchase a used car.  In reality, online auto auctions are continually proving themselves as a viable, if not superior option, to dealerships and private sellers via the classifieds.  Here is quick look at some of the most common reasons that more people are starting to consider buying used cars at online auto auctions.

1. The Best Prices

Online auto auctions consistently prove that they can provide the best prices when searching for used cars to buy.  This is because more and more people are selling their used cars online and a much smaller number of people ever consider buying online.  With such a big supply and comparatively small demand, the prices are going to be much lower than anywhere else.  You can go to an online auction and buy a car from anywhere in the country and have it shipped to you.  If you want to see the car before you buy it, you can limit your scope to local holding facilities where you can check it out before you place a bid. 

2. No Middleman

It is no secret that most dealerships make a majority of their money off of their used cars.  This is because they give out very little for trade-ins yet charge so much when the car is sold.  When using an online auction website, they make a % of the total sale.  While they will promote every vehicle as much as possible to potentially increase the price, they also do not have money invested in it personally. 

For example, if an owner sells a car for $500 then the website may get $50.  This $50 is pure profit because the online auction website did not invest any money of their own.  Whereas, if someone trades in a car for $500 to a dealership, the dealership would try to sell it for $5000.  This is because they have a large number of additional costs to cover including: storage, cleaning, commissions to salesman, standard overhead costs and still need to bring in enough money to turn a profit.  In short – Online auction websites make a % on every sale regardless of how big or how small.  Dealerships must make a large profit, over the trade in price, in order to cover all of their expenses and still turn a profit.

3. Selection

With the ability to buy a used car from anywhere, your selection is almost limitless.  In fact, after only a few months, the latest new cars to be released can be spotted as used cars on online auto auctions.  When it comes to selection, you can not only set your price, but also the make, model, price, and mileage.  When you go to a dealer and tell them what you want and how much you want to pay, they will show you something that might be similar to what you wanted (except for being a few years older), but for much more than the price that you quoted them.  Online auto auctions will give you the ultimate level of selection without the hassle of going to a used car dealer.

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