ABM_1 - Flipbook - Page 44
OPINION
RETAIL
Online-only
auctions: The most
effective option?
→ John Hood is general manager at Auction4Cars
C
ar auctions are growing in
popularity, according to the
National Association of Motor
Auctions (NAMA), with the
market hitting record strength
in August 2025.
The rise in online-only
auctions can prove helpful
for time-strapped dealers, providing
greater flexibility and offering a way to
fill their forecourts without having to
leave their dealership.
Auction4Cars.com shared five reasons
dealers should consider making
the switch:
Transparent listings
A key benefit is that they provide
transparent, easy-to-access
information. Prior to an auction going
live, each vehicle will be vetted with a
detailed listing including a description
of its condition and specification. While
you can’t “kick the tyres” of online
auction stock, these detailed listing
pages ensure dealers can be confident
before bidding and will not stumble
across hidden problems once on
their pitch.
Accessible
Online auction sites are simple to use
and with auctions running throughout
the week, dealers are not limited on
when they can source stock. With the
opportunity to bid on multiple live
auctions at once from anywhere, online
auctions can reduce the amount of time
spent replenishing your inventory.
Some online auction platforms offer
proxy bidding functionality, providing
dealers with the ability to remain active
in an auction whilst away from their
phone or computer. This automated
bidding function means dealers do not
need to manually monitor each auction
and instead can just check-in on
progress as and when needed.
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AUTOMOTIVE BUSINESS Q4 2025
Stress-free buying
Even if dealers are seasoned buying at
auction, a physical auction environment
can be busy and stressful. With multiple
auctions running at once, there is
always a chance that dealers could miss
out on stock they were wanting to see.
Online auctions make the buying
process simpler, with less immediate
decision making required. Most
auctions will run for a couple of days
meaning dealers have the time to really
consider what is right for their forecourt
before placing a bid.
Efficiency and convenience
Although traditional auctions can
be a great way to see stock prior to
purchasing, dealerships without a
dedicated buying team might find them
too time intensive to attend regularly.
Online auctions can fill this gap in a
really effective way, meaning dealers
can be restocking while also focusing
on other areas of the business.
Search functionality allows dealers
to search specific models so they can
find exactly what they want, as well as
setting up alerts when specific vehicles
are up for auction.
Cost-effective
Online auctions prove cost-effective
for dealers as they reduce time offsite, helping relieve staffing costs and
remove the need to drive to an inperson auction. Some online auctions
can offer flat fees, meaning that smaller
dealers are not disadvantaged for
purchasing fewer vehicles. With auction
fees stretching into the £100s per
vehicle, this could provide a huge saving
and help increase metal margins.
Just like traditional car auctions, their
online counterparts will use industry
data to benchmark pricing, meaning
dealers can be confident they will not
overpay for stock.i
