Continued from Article: Argument for you to Focus on Wholesale
I am not suggesting that off-site auctions are inherently bad, they’re not. Remember, my dad was an independent dealer and we spent the greater part of my childhood at auctions in Pennsylvania and New York buying cars for his dealership.
No, auctions aren’t bad, they’re just expensive, like any third party. Third parties can be great under certain situations, but whenever you outsource a task to another company you are inevitably giving up a piece of your profit and in some cases weakening your understanding of the market.
Some dealers just don’t have the stomach or the inclination to start their own bid sale. If they are willing to pay the costs and like the results, off-site auctions can be the way to go.
Even if you like using off-site auctions to wholesale your cars, take some time to finish this series of articles before you move on. It may change your paradigm regarding your current process, and if nothing else will let you fully understand what you are paying for it may even help you find ways to reduce that expense.