Dealers need physical auctions to help identify new used car profit opportunities
Dealers are benefiting from additional used car profit opportunities in the current wholesale market now they can attend physical auctions again according to Shoreham Vehicle Auctions (SVA).
Being able to physically inspect the lower priced grade four used cars enables them to identify those they can repair themselves and profit from instead of just being forced to pay the current high prices for grade 1-3 cars.
According to buyers inspecting and bidding on used cars online makes identifying repair opportunities more difficult despite the current high quality of online imagery and descriptions.
“We have been open for business for over seven weeks with buyers able to inspect and bid on used cars physically in the auction. This has been invaluable for dealers looking for an alternative to paying the current high market prices for cars,” explained Alex Wright, managing director of SVA.
“Buyers also benefit from being able to engage with SVA staff, the auctioneer and vendors, who are back on the rostrum, about the cars on sale that need refurbishment. This level of due diligence on grade four used cars is impossible to carry out online,” he added.
Dealers have welcomed the opportunity to engage with other buyers and vendors about the quick-moving market and SVA has responded by increasing trade buyers on site to 75 on sale days. Since dealers opened in April SVA has experienced impeccable buyer behaviour and continues to work to a two-metre social distanced strategy and with compulsory mask wearing on site. The auction remains shut to private buyers until after 21 June.