Q: What are the top sources for inventory at a car auction?
A: Finance and Off lease vehicles comprise the top inventory source at a car auction.
Below is a table listing the various car inventory sources by seller at a dealer auction.
|Vehicle Inventory Sources at Auction|
|1||Captive Finance / Off Lease||31.86%|
|2||Dealer Consigned / Trade-In||21.62%|
|3||Wholesale Units / Repo||14.42%|
|4||Non-captive Finance / Off Lease||13.16%|
|5||Fleet / Demo Vehicles||8.55%|
|6||Manufacturer / Corporate||5.30%|
|7||Retired Rental Cars||4.84%|
Auto Auction Inventory Sources
- Captive Finance / Off Lease
These are vehicles sold by a finance or leasing company, example BMW Finance, Honda Car Finance and GMAC
- Dealer Consigned / Trade-In
These are vehicles taken on trade at the dealership level. Dealers don’t retail most trades; they often dispose of them at auction.
- Wholesale Unite / Repo
These are vehicles repossessed from a buyer who failed to make his monthly payment. Independent companies are in the repo business as most large financial institutions sell accounts to vehicle recovery outfits.
- Non-Captive Finance / Off Lease
Many banks or credit unions now offer car leases. These are often at a higher rate and on specialty vehicles.
- Fleet or Demo Vehicles
These are vehicles that were part of a private company’s company fleet, Uber fleet for example, or, cars operated by a dealer as loaner or manager demo.
- Manufacturer or Corporate
Many car manufacturers offer their executives a company car, these are normally late model cars and usually sold after 1 or 2 years of service.
- Retired Rental Cars
These are cars that were operated as a daily rental vehicle at airports or for collision replacement. Most car rental car companies, however, offer a closed sale to affiliated car dealerships, for example, Enterprise rent a car sells retired rentals to Enterprise Car sales.