Dealership Advice

The Opportunity Cost When Buying From The Auction

July 1, 2021

If you've ever been to a car auction, you know what a hit or miss proposition it is. Either you spend your whole day to buy just a couple of overpriced cars that you know nothing about or you possibly spend your whole day and walk away with nothing. Of course, you can be successful buying private party vehicles, but you don't want to overpay or spend all your time negotiating.

The truth is you can be successful buying cars from anywhere and anyone. The only question is how much time are you willing to spend to find high-quality cars. You only have 24 hrs in a day, and you need to spend those hours wisely to acquire as many high-quality vehicles as you can.

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How Do Opportunity Costs Impact Car Buying?

The old saying is time is money and going from car auction to car auction looking for the right vehicle takes time. All the time you sit there waiting for the right car to come up for purchase could be spent negotiating with private party vehicle sellers or running your business. Every time you spend time waiting is time; you could find the right cars to fill your lot.

Hidden Costs of Car Auctions

When a car ends up at auction, it didn't just come from nowhere. There's a reason that car is there and not getting sold by a private seller. There are a lot of hidden costs in buying car auction vehicles.

  • The opportunity cost of travel - It takes time to travel from auction to auction, and even while you're there, there's no guarantee you'll find the right vehicle. All that time spent driving to the auction, waiting for it to begin, and bidding on vehicles is better spent running your business.
  • There are hidden gems from private sellers - You're not going to find many deals at those car auctions. The auction wants to make as much profit as possible. Private sellers are selling for a reason. Some sellers found themselves in financial trouble and needed quick cash. Some sellers bought a luxury car and can't keep up with the payments, and some sellers are hobbyists who enjoy fixing up the cars but don't need to hold onto them. There are a lot of good cars from private sellers.
  • Car auction cars can be problematic - Every car at auction is there for a reason, and most of those reasons aren't good. Whether they were abandoned or former rental cars, you may need to put a lot of money into them before they can go on your lot.

Buying Private Party Vehicles Without The Hassle

We understand the problems that you are facing, and we want to show you a better way. You can get all the cars for your lot from our platform and save yourself the opportunity costs associated with car auctions. Our software searches for the best market, our team narrows down the best deal, and you get the best price so that you can fill your lot with high-quality vehicles. If you want to know more about what we can do for you, click here for more information.

See it in Action

Discover how VETTX can supercharge your vehicle buying center. Schedule a free strategy call with our experts today and take the first step towards dominating your market.

2019 Toyota Tacoma sold with over $4000 ROI