What’s the purpose of dealer only car auctions?

Question

I know it keep the consumers out so the dealers can competes below the retail price but why would anyone who want their cars gone sell it at a place where everybody unwilling to pay retail price than just go to a public action and sell it to the consumers?

In: Other

Answer 1

I think you’re misunderstanding **who** is selling cars at these auctions. The cars that are sold at these auctions are most often from:

* insurance companies selling cars after accidents
* finance companies selling cars after repossession
* dealers selling cars they took in on trade

In all of these cases, the car is just a liability and they want it gone. For insurance and finance companies the car is likely damaged or in bad repair mechanically and they just want it gone. Also, those cars may have title issues that need to be worked through.