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Mistakes You Should Avoid in Online Car Auctions
Recognize and avoid common used car auction mistakes so that you can confidently secure the best deals for your dealership.
You’ve found a promising car in an online auction: it’s in great condition, it’s reasonably priced, and it looks like the perfect fit for your used car dealership. To turn opportunities like this into success, you have to avoid common pitfalls that can make or break a deal.
In this post, we’ll show you some key mistakes we’ve seen buyers make over the years, so you can steer clear of them and make the most of your online auction efforts.
Don’t skip descriptions and photos
One of the most common car auction mistakes is buyers skipping over the detailed descriptions and photos provided in online auctions.
Skimming a listing might seem faster, but it can lead to costly oversights. Remember, vehicle descriptions are there for a reason: they give you a full picture of what you’re bidding on. In other words, they are crucial for properly evaluating a used car’s value.
From vehicle condition, previous repairs, and mechanical damages, everything you need to know is often mentioned upfront.
We’ve seen traders overlook key information, only to run into issues later.
To avoid this, always make sure you carefully check both the description and photos before making a decision. It’s a small effort that can prevent big problems down the road.
Always check car history reports
Another big used car auction mistake is neglecting to check car history reports.
Depending on the platform where you’re bidding, most vehicles will have history reports included. So, you should definitely take the time to review them before placing a bid.
History reports can tell you important details like whether the car has been in a serious accident, if there’s been any flood damage, or if it’s had extensive repairs.
For instance, a service history like this might show regular maintenance, including oil changes and more significant repairs like steering work.
Details like these give you a clearer picture of how the previous owner has cared for the car.
Bear in mind that not all cars have history reports provided. If the car you’re interested in doesn’t have a history report listed, you can always run the VIN through a VIN check tool.
A VIN can tell you important details, such as the car’s specifications, or even if it has been reported stolen.
Set a budget
With so many fantastic cars available online, it’s easy to get caught up in the excitement of bidding and end up paying more than you intended. That’s why you should have a solid budget and stick to it.
When you start browsing used cars for your dealership, you should set a max bid for each car based on its market value and your financial limits. After all, your aim is to run a profitable business, so do the math upfront and make sure the numbers work in your favor.
Remember to account for more than just the auction price. Here are some additional costs to consider when setting your budget:
- Auction price
- Transport costs
- Import duties and taxes
- Potential repairs
A carefully planned budget lets you bid confidently, knowing you’re getting great value while still keeping your dealership profitable.
Know the terms and conditions
Not many people like reading the fine print, but it’s important to know what you’re signing up for.
Each platform operates under its own rules, which may include deposit requirements, commission fees, and claim policies.
Reading about these terms in advance lets you manage your expectations and understand your rights as a buyer.
eCarsTrade: Transparent fees, no surprises!
If you’re prepared to set your budget, read descriptions, and check history reports, you’re ready to start stocking your dealership.
In that case, we invite you to check out our online auctions platform, eCarsTrade, where you can bid on thousands of used cars and turn them into your dealership’s next quick sellers.
Our auctions offer a wide range of used vehicles available at budgets that suit all types of dealerships. So, whether you’re selling to rental companies or scrapping cars for parts, you can find excellent deals here.
One of the best things about the platform is our commitment to transparency. You can see the exact cost of each vehicle, including the commission, before you place a bid.
Unlike some platforms where hidden costs and fees might pop up later, eCarsTrade is fully transparent. The total price you’ll pay for vehicles on our site consists of:
- Your bid amount
- Our commission
- Administrative fee
You can check the precise amounts on our Costs page, which allows you to calculate your costs and plan your profit margins from the start.
Get to know the types of auctions available on eCarsTrade
Dealers have different priorities, and prefer different ways of stocking their lots. We know that not everybody likes the thrill of bidding wars, so eCarsTrade offers several ways of buying cars to suit your style.
Open Auctions
In Open Auctions, you can see the current highest bid and decide if you want to place a higher one. You can see what an Open Auction looks like below.
You’ll need to monitor the Open Auction closely to increase your chances of outbidding the other traders and winning the car.
Just remember, once you place a bid in an Open Auction, you can’t cancel it, so make sure you’re fully committed before placing your bid.
Blind Auctions
Unlike Open Auctions, in Blind Auctions, you can change or delete your offer as long as the auction is still active. The catch is that you can’t see what other dealers are bidding, so you’re placing your bid without knowing the competition.
However, when placing your bid in a Blind Auction, you can use the bid suggestion tool to help you decide on a competitive bid.
If you change your mind for any reason, you can change your offer as long as the auction is open.
Fixed Prices
Some dealers want to skip the bidding process and buy ex-lease cars at fixed prices. We offer a range of such vehicles that you can buy immediately if you like the car and its listed price.
When you click the buy button, our team will be with you within two hours to confirm the purchase and guide you through the next steps.
Our Stock + Our Stock Offers
When buying from Our Stock, you’re choosing vehicles that are already available at our warehouse. You can buy cars immediately at the listed price.
If the cars have been listed for a while, you’ll be able to make us an offer and possibly get the car for a lower price.
What not to do while buying a vehicle in online auctions - eCarsTrade expert comment
Now that you’ve seen what auctions look like on eCarsTrade, we’ll tell you how to maximize your chances of success and avoid specific mistakes.
A good place to start is considering the details in the vehicle description and photos. Here’s how Chiara Santoiemma, eCarsTrade Sales Manager, sees the issue:
"One of the biggest mistakes I see is buyers not thoroughly reviewing the vehicle description and photos. Every scratch, dent, or mechanical issue noted can affect your purchase decision. I've seen dealers lose thousands because they didn’t take the time to read the fine print. Always, always study those reports as if your profit depends on it—because it does."
So, before placing your bid, make sure you go through every detail to ensure the vehicle is the right fit for your dealership and that there are no surprises down the road.
eCarsTrade listings often cover important remarks, which is a listing section that highlights significant details, such as previous damage or estimated repair costs.
If the car you’re interested in has important remarks listed, make sure you review it thoroughly, and you’ll be able to factor in all potential costs before placing your bid.
Santoiemma also advises rushing into auctions without first getting to know the eCarsTrade resources at your disposal.
“Your Account manager is there to provide bid recommendations, and our bid and market price calculators are invaluable tools.”
Therefore, you should study the available tools to avoid overbidding or missing out on great opportunities.
Lastly, you should definitely try to avoid bidding wars.
It’s easy to get caught up in the excitement of a particular car, but we have a large selection of vehicles available.
If you really have your eyes on a model you’d like to get, you can use the Smart Finder, our tool that allows you to automatically bid as soon as a car with your exact criteria shows up on the platform.
About earning bidding strategies
As you’ve seen by now, we’re strong advocates for informed bidding. This means that every decision you make should be backed by careful research and strategy.
We’ve prepared an entire guide on car auction bidding strategies that you can read for detailed insight. For now, here’s an overview of strategies to explore:
- Incremental bid increases
- Strategic bidding timing
- Avoiding bidding wars
- Patience and discipline
- Setting a maximum bid limit
- Last-minute bidding
Get informed! Our support team is here to answer your questions
If you feel more secure knowing there’s always someone to assist you, then eCarsTrade is the right auction platform for your dealership.
Each eCarsTrade user is assigned a dedicated Account Manager, who will be your main point of contact for all questions and concerns. Also, our team speaks more than 10 languages, so you’ll always be paired with someone who understands you.
So, if you have any questions, just shoot them your Account Manager’s way!
Making the most of your auction experience
Whew, with so many factors to consider in auctions, it’s quite normal to make some mistakes, especially if you’re first starting to bid.
By staying informed and using the resources available to you, you can avoid common mistakes and confidently navigate auctions, securing the best deals for your dealership.
Remember, auctions are a great opportunity to find deals that keep your inventory moving and your profits growing, so try to make the most of them!
eCarsTrade isn't just an online auction platform - we're also a valuable resource for car dealers and traders. Our blog offers expert advice on various topics, including:
