Every year, more than 9 million cars are sold at an auction. It is a popular way of buying and selling cars. If you are interested in starting an auto auction, then this article will help you to know the process in detail.
Here, we are going to tell you what steps you should take to start an auto auction.
Select a place
You should book a place for holding an auto auction. If you are thinking of doing it regularly then it is worth buying the space.
Depending on how many vehicles you are going to have on display, you can choose a space from a few acres to hundreds of acres. Sometimes, a multi-storied parking lot type of space is used for conducting auctions. You should make sure that you have the necessary legal documents for your space.
Depending on where you live, you may have to meet certain criteria to conduct an auto auction. You should visit the city council to know about the rules and standards. You need to get the license for the business and do all the paper work to run the auction.
You must contact dealers, government agencies, banks, manufacturers, and others and tell them that you are conducting an auction. Once the vehicles arrive at your premises, you must record the Vehicle Identification Number (VIN).
This will tell you everything about the vehicle which includes its manufacturing date, condition, features, and other information.
You can also take pictures of the vehicles and post them on your website so that buyers can have a look at them. You should allocate a specific lane for the vehicle and note down its location so that you can easily find it.
You should get a maintenance report from the sellers mentioning the present condition of the vehicle. The report should mention if there is a flat tire, denting, or other problems.
It should also mention whether any repair is necessary and if so, how much it may cost. You can post this information on your website along with the other information about the vehicles that are up for auction.
You should use various advertising methods to let people know about your auction. You should fix a date and time for it and print leaflets, banners, and other marketing materials. You can use telemarketing and online marketing as well.
You must have employees to do the after-sale paperwork. As there will be many transactions in the day. You need to do the financial calculations necessary to complete the deal.
You should arrange for transporting the vehicle to the buyers’ place in case they haven’t arranged it themselves.
An auto auction is a big event. You need a lot of preparation before putting up a successful auto auction. You should decide on the budget and then go about it; otherwise, you will get stuck in the middle of the process.
You must hire the right people who have the right skills to make the event a successful one.