The Role of Car Auctions in the Auto Sales Industry

The auto industry is considered one of the most dynamic and evolving markets and constantly changes to meet supply and demand needs. With the rising cost of living, car buyers are turning to auctions to find affordable, decent cars instead of buying new ones that may be too expensive for their pockets. But how exactly have these auctions transformed the auto sales industry? Here is more about the role that car auctions and brokers, such as CarsFromWest - official Copart broker, play in getting you the car of your dreams at the best price possible.

The Bidding Process and How It Has Reshaped the Market Dynamics

For those new to auctioning, the process involves multiple buyers placing bids on a car. The one who puts forth the highest bid gets the vehicle. Traditionally, people held auctions where people were physically present, and the auctioneer stood before them and presented the car. However, during the pandemic, when people were not allowed to gather together, online auctions grew in popularity. Even after the pandemic, online auctions still happen and are a great convenience to those who can't physically attend an auction.

Most parties in the auto sales industry, particularly dealerships, enjoy auctions as they are particularly effective for letting go of excess inventory. Auctions also serve buyers who don't have a lot of cash to buy a new car or want to avoid dealing with the hassle of traditional financing options like bank loans or credit cards, as they tend to require more paperwork.

How Do Auto Auctions Help the Auto Sales Industry?

There are several ways in which auto auctions help dealerships and buyers alike. The following are some of them.

●     Going Digital

Taking the vehicle marketplace digital turned out positively for the auto actions. Whooping percentages of buyers these days come from digital buyers. Ever since the pandemic, the move to online platforms has proven to yield positive results, and it does not look like it is going away anytime soon as the marketplace has grown even bigger.

However, this does not mean physical auctions are gone. They are still here with us for those buyers who prefer to see what they are paying their hard-earned money for. Online platforms are for customers who cannot physically get there and would like to make the purchase at the convenience of their phone or computers.     

●     Affordability

Car auctions help customers get vehicles at affordable rates. Although you might find vehicles that require a bit of reconditioning and converting, the costs are usually lower than buying a new unit. When looking to purchase a car, most customers want the best deal for the vehicle of their choice, and auto auctions ensure that.

●     RunBuggy

RunBuggy is an open car transportation marketplace that offers access to a network of car transporters from anywhere in the country through an app. It helps customers to see the location of their vehicles in transit through real-time tracking and allows for seamless handling of the delivery. So when you buy your car through an online auction, you can track its transportation as it's brought to you.

●     Keeping Up with Demand

Global events such as COVID-19 disrupted the supply chain and affected various automotive industry partners, such as the chip-making industry. It is common to hear of labor shortages, chip shortages, and shipping delays that affect the automotive industry. These come with the struggle to keep cars coming and going off the assembly line.

Despite these issues, the global demand for cars has only gone up. Auctions provide buyers with an alternative where they can get slightly used cars for their upcoming purchases instead of waiting for new cars that you may not know when they will be available for purchase. This ensures a steady supply even when demand is high and keeps car sellers on good terms with potential buyers.   

Conclusion

The world of car auctions and their influence on the car sales industry is much bigger than it seems at first glance. The used car share market has tremendously grown over the past couple of years, and the high demand for used cars drives up the sales in auctions. This is because most dealers are looking to benefit from the market by getting car deals at cheaper prices. March and April typically see high sales of used cars due to the tax refund season. As you can see, car auctions play a significant role in the automotive industry, and that role is only going to get bigger.