Today’s auction houses offer a plethora of stock and various convenient ways to buy it.

However, everyone must abide by one simple rule if they are to make the most of auctions – be clear on what you want to buy and how much you have to spend.

If you have never used auctions before, take time to understand how the process works, the vehicles on offer, which vendors will be there and the terms and conditions.

A first-time visitor should familiarise themselves with the layout of the site and be aware of who the auctioneer and auction manager are.

Mike Pilkington, managing director of Manheim Auctions and Remarketing, said: “Use the internet to search for stock at auction before committing time to a physical visit.

Remember that auctions are a way of sourcing stock of all different ages, mileages and types (car, van or truck) so franchised dealers shouldn’t restrict their focus to manufacturer auctions.

Auctions are a way of expanding the search for vehicles outside a narrow geographical area while a cost-effective delivery service is available at all centres.”

Pilkington felt a common mistake when buying at auction is focusing too much on the price guides when people should be thinking about what the vehicle can be retailed for.

Pilkington said: “A dealer would normally need only one buyer to attend an auction although using the online service a buyer can attend a number of sales at one time.

"If the auction is far away and the dealership prefers not to buy online, then specialist commission buyers offer their services.”

Manheim believes many dealers do not analyse their past sales or examine the information and statistics available from their used car locator to help understand what customers are looking for.

Avoid missed opportunities

Pilkington said buyers are often given a broad area to work to based on past success, which can mean opportunities are being missed because they are looking for stock which has never been made available.

Buyers can be opportunistic and buy a vehicle just because it represents good value and a profit opportunity rather than matching it to what people need.

If your business is buying and selling used vehicles then auctions should be part of it, according to British Car Auctions.

Tony Gannon, BCA’s communications director, said: “Even in the midst of what many see as the worst economic downturn in generations, auction remains busy and active.

“Since the turn of the year, the auction halls have been particularly hectic, with sold volumes and values rising.

"There are many new buyers attending for the first time and others have come back to auction as other sources have proved less profitable.”

The company, along with Manheim, believes a shortage of used car stock will be a problem in the future.

Gannon said extended cycles in the leasing sector and wholly-owned fleets will restrict supply, although if it does it will be possibly balanced by greater volumes from the dealer sector when new car sales improve.

Paul Storr spent 15 years as a disposal manager for various fleet and dealer groups, including Jardine Motor Group.

He believes buying at these types of auctions is ideal because if they are fleet vehicles they would have been regularly serviced and should be a straightforward sale.

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