Go With Your Gut: Buy With Confidence At Auto AuctionsApril 22, 2016
After buying thousands of cars at wholesale auto auctions, I have experienced the highest highs and the lowest lows. When it comes to making these tough decisions, hard data and research from market reports can be great reference points. But in reality, there is no better lead than going with your gut.
Here are a couple of reasons why.
First, auto auction market reports are not created by a supreme power; they are developed by people like you and me. Second, wholesale auto auctions only sell about 60 percent of the vehicles they run. This leaves a whopping 40 percent of vehicles unsold! In many cases, these cars can receive bids up to an actual cash value. Just because the buyer does not accept that value, does not mean that bid was wrong or inaccurate.
It is also worth noting that report data is, by default, usually wrong to some degree whereas your gut relies on real past experiences. Remember that report data is just an approximation on what a car might be worth. Only you can tell the exact condition of the car in front of you. Not a report, book or website.
So, knowing this, how can you find the right balance between reading reports and going with your instinct? Use price guides, market data, and research on comparable vehicles to get an idea. But when it comes to decision time, trust your own intuition.
If you do this right, you can make confident and quick decisions while generating substantial profits. Happy bidding!