How Much Cheaper Are Cars At Dealer Auctions?

How Much Cheaper Are Cars At Dealer Auctions

Table of Contents

Everyone loves the excitement of getting a new car, but the steep prices can be a buzzkill. To save money, many savvy shoppers turn to dealer auctions as an alternative. But how much cheaper are cars at dealer auctions compared to retail prices? In this article, we’ll delve into the advantages of buying vehicles through dealer auctions, as well as the potential savings you can expect.

Understanding Dealer Auctions

Dealer auctions are exclusive events where licensed dealers can bid on and purchase vehicles at wholesale prices. Typically, the vehicles come from sources such as trade-ins, lease returns, repossessions, and rental or fleet companies. Since the auction participants are professionals in the industry, dealer auctions offer a wide variety of vehicles at competitive prices.

How Much Cheaper Are Cars At Dealer Auctions?

Although the specific savings can vary depending on the vehicle, model, and auction, cars at dealer auctions are generally sold for 15-40% less than their retail counterparts. This price difference is primarily due to the absence of middlemen costs, dealership overheads, and advertising expenses.

Factors Affecting Vehicle Auction Prices

Several factors can influence the final price of a vehicle at a dealer auction, including:

Vehicle Condition

The overall condition of the car, including its mileage, maintenance history, and any cosmetic or mechanical issues, can significantly impact the auction price.

Auction Competition

The more bidders are interested in a particular vehicle, the higher the price will likely be driven. Supply and demand play a crucial role in determining the final auction price.

Vehicle Popularity

Some makes and models are in higher demand, which can lead to stiffer competition and higher prices.


The time of year can also affect prices. For example, convertibles and sports cars may fetch higher prices during the spring and summer months, while 4x4s and SUVs may be more in demand during the winter.

The Perks of Buying at Dealer Auctions

In addition to the potential savings, buying a vehicle at a dealer auction comes with several other benefits:

Access to a Wide Selection

Dealer auctions offer a vast array of vehicles, from luxury cars to budget-friendly options, providing an opportunity for buyers to find the perfect fit.

Lower Sales Tax

Since vehicles are sold at wholesale prices, the sales tax you pay will also be lower, resulting in additional savings.

Less Pressure

Dealer auctions provide a more relaxed environment compared to retail dealerships, as you can take your time evaluating vehicles without the pressure of salespeople.

The Caveats of Dealer Auctions

While there are numerous advantages to buying a car at a dealer auction, it’s essential to consider potential drawbacks:

Limited Inspection Opportunities

Vehicles at dealer auctions are typically sold “as-is.” Buyers may only have limited time to inspect the vehicle, which could lead to unexpected repair costs after purchase.

No Test Drives

Most dealer auctions do not allow test drives, meaning buyers must rely on their inspection skills and intuition to make the right choice.

Need for a Dealer’s License

To participate in dealer auctions, you must be a licensed dealer or partner with one.


Dealer auctions can be a goldmine for buyers seeking quality vehicles at lower prices. While there are potential risks involved, such as limited inspection opportunities and the need for a dealer’s license, the benefits of accessing a wide selection of vehicles and substantial savings make it an attractive option for many. To reap the rewards of dealer auctions, it’s crucial to do your homework, partner with a trusted professional, and be prepared to act quickly when the right opportunity arises.

Are you ready to take advantage of dealer auctions to find your dream car at a fraction of the retail price? Look no further than Inside Car Guys! As a reputable car broker with access to exclusive dealer auctions, we can help you navigate the process and potentially score a fantastic deal on the perfect vehicle for you.

Don’t miss out on the opportunity to save thousands on your next car purchase. Let Inside Car Guys put our expertise and industry connections to work for you. Contact us today to discuss your needs and preferences, and we’ll get started on finding the best possible deal tailored to your requirements.

About Marcus The Car Guy

I've been in car sales and finance for over 20 years, working at the highest volume dealerships in the nation including Fletcher Jones, DCH and more. Want to pick my brain on finding cars, negotiating cars, and structuring car deals?

Recent Posts

Follow Us

Weekly Tutorial



Leave a Reply

Get The Best Deal On Your Next Car