Published 
March 02, 2021
When it comes to acquiring used inventory for your dealership, buying a used car from a private party is often overlooked in comparison to other methods, like auctions or trade-ins. While private sales have the potential to add some valuable inventory to your lot, the actual process of sorting through countless listings, and then gauging which ones will actually be worth your time, can be a lengthy and tedious task in and of itself. However, this reason alone shouldn't deter you from considering what private sellers have to offer. Combined with VETTX's streamlined software, the benefits of leveraging the private party market outweigh those of used car auctions.  Here are 3 reasons why buying a used car from a private party is better than an auction:
 

1) Buying a Used Car from a Private Party Can Save You Time

Attending multiple used car auctions can be incredibly time-consuming. They can take several hours out of your day, and as a dealership owner, you're likely spending quite a bit of time acquiring inventory this way. While you may be thinking that searching for viable private party sales can be just as time-consuming, at VETTX we've curated a way to help you save a ton of time with our platform. By filtering out unqualified leads and providing you with the best deals in your locality, we can equip you with the tools you need to get the best out of the private party market without wasting any valuable time.

2) You Can Find Hidden Gems with a Private Party Sale
Many private sales are conducted by owners who no longer need the car they're selling, or can no longer afford it and need to make some quick cash. In some cases, if the seller isn't aware of how much their car is really worth, they could be undervaluing the sales price, giving you the opportunity to earn more profit on your original investment after you resell it. Another opportunity to strike a great deal comes from car flippers. Some private sellers may have purchased a car for cheap, fixed it up, and detailed it themselves to sell for profit. These can often be great finds because most or all repairs that the car needs have already been taken care of, so you can get the car on your lot faster and without having to address the repairs yourself.

3) Buying from an Auction Can Be Risky

When vehicles are sent to auction, they can be there for any number of reasons. Some common reasons are:
  • They are being auctioned by a financial institution after repossession of the vehicle.
  • They are vehicles that were towed or abandoned.
  • They were previously used as rental cars.
  • They could have extensive damage from an accident or severe weather, and are being auctioned by an insurance company.
  • The vehicle has already stayed on another dealership's lot for too long, and they are trying to make back some of their investment.

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While you may be able to secure some good deals through auctions, it's also difficult to know exactly what you're going to find. The selection there could include anything from late-model cars in good working order, to older models that require extensive repairs before you can resell them. On the other hand, buying from a private seller often gives you the added benefit of being able to request information about the maintenance history of the car. You should also be able to communicate with the current owner to ask any questions you have about the car before setting aside the time to go and inspect it yourself. What's more, is that there is often less competition from other prospective buyers with a private sale vs. an auction.

Are You Ready To Quit The Auction Scene For Good?

If you are interested in utilizing the private party market to increase your inventory, VETTX provides an easy-to-use, searchable platform of pre-vetted, high-quality used cars for sale. Our software takes out all the guesswork for you and helps expedite the process so that you can diversify your inventory with the lucrative for-sale-by-owner market. Contact us today to learn more about how we can help increase your dealership's sales!

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