The Three Key Reasons Car Brokers Should Buy Their Stock at Auctions

The automotive industry is a large one. This is no secret, particularly to the used car businesses that describe a key majority of it. As a car broker, you’ll be intimately aware of the industry’s breadth and depth, of the myriad differing needs of an ever-changing customer base, and of the unique economic challenges that can present when attempting to acquire new stock.

One of the more compelling tools in the car broker’s arsenal in this regard is that of the auction – an environment which provides a number of key boons to businesses in the second-hand car trade, and which could turn your own car broker business into a highly competitive regional force. How, then, could the simple act of getting involved in car auctions local to your business be instrumental in your stock acquisition?

Access to Diverse Inventory

First and foremost, car auctions are an opportunity to engage with an extremely broad slice of the automotive industry itself. Where brokers are usually dealing with bulk deals in relation to surplus or discontinued stock, or even one-on-one with private sellers parting with individual vehicles or small collections, the auction does the work of collecting sellers and stock from across the field.

Auctions are also the best place to go to keep an eye on a broad range of non-traditional opportunities – be they rare vehicles, bespoke one-offs or vintage classics that are otherwise difficult to track down. As a broker, you can do two things here: meet the specific and individual needs of clients that hire you, by sniffing out relevant vehicles at auction; or build up an appealing inventory of vehicles from regular attendance and investment.

Potential for Competitive Pricing

That last word might strike some fear into the hearts of certain tradesfolk here, not in the least as vehicles are notoriously difficult investments. The vast majority, of course, depreciate in value over time – and the small amount that don’t are difficult to discern for all but the most tuned-in of car anoraks.

However, if you know your onions with respect to vintage vehicles, auctions can provide you with the opportunity to get something special and undervalued for a special price – and a huge future profit margin. Further, if you’re in the business of buying up new stock, auctions are an ideal opportunity to build stock at dramatically-reduced prices.

Networking and Relationship Building

Finally, regularly attending car auctions as a broker has a secret third benefit – and one which many brokers do not properly avail of, as well. In attending car auctions, you’ll be rubbing shoulders with a wide spectrum of the industry – on both the business side and the client side.

Other brokers and dealers will be involved in the listings up for auction each time, as well as bidding with you on other listings; meanwhile, private buyers will be at auction looking for their next purchase. Every auction is a golden opportunity to expand your network, exposing you to more acquisition opportunities and more potential clients.