Why do main dealers send their own cars to auction?
Discussion
Does "Warranted" in each listing refer to the milage or the car?
I know my local garage sends everything that is out of manufacturer's warranty either to auction, or in the case of older cars, straight to a guy who buys them up for the eastern bloc countries.
It's because he otherwise has to provide a full year's warranty on the car himself.
I know my local garage sends everything that is out of manufacturer's warranty either to auction, or in the case of older cars, straight to a guy who buys them up for the eastern bloc countries.
It's because he otherwise has to provide a full year's warranty on the car himself.
AlexNJ89 said:
This one is just out of curiosity. I was looking on the BCA auctions website and saw that both BMW and Mercedes have sent cars to auction which would be perfectly good for their main dealer forecourts.
When I was at MB they had an in-house Used Car Remarketing team that handled ex-employee and ex-daily rental hire cars. My understanding is that cars were graded on condition (A/B/C).A grade cars went to the used car dealerships that MB owned themselves (called MB Direct at the time).
B grade cars went to closed auctions for franchised MB dealers.
C grade cars went to open auctions.
There is a good chance that BMW did the same.
Therefore, these cars have probably been inspected and were not considered good enough to retail through the franchised network.
ralphrj said:
AlexNJ89 said:
This one is just out of curiosity. I was looking on the BCA auctions website and saw that both BMW and Mercedes have sent cars to auction which would be perfectly good for their main dealer forecourts.
When I was at MB they had an in-house Used Car Remarketing team that handled ex-employee and ex-daily rental hire cars. My understanding is that cars were graded on condition (A/B/C).A grade cars went to the used car dealerships that MB owned themselves (called MB Direct at the time).
B grade cars went to closed auctions for franchised MB dealers.
C grade cars went to open auctions.
There is a good chance that BMW did the same.
Therefore, these cars have probably been inspected and were not considered good enough to retail through the franchised network.
Did you not sell off to the likes of Car Giant and other volume/trusted buyers?
hyphen said:
Isn't there a another option between B and C? Private arrangements with independent dealer?
Did you not sell off to the likes of Car Giant and other volume/trusted buyers?
Possibly, it wasn't an area I worked in but this was my recollection of a conversation with someone who did work in the Remarketing team. I may have missed a grade. Did you not sell off to the likes of Car Giant and other volume/trusted buyers?
Nearly half of that list have more than 60k miles, it not worth it for a main dealer - that's really independent dealer stock nowadays.
Other ones may be models that have historically sat for a long time on the forecourt so it's much quicker to realise the cash through auction - the i8 and 2 Tourer for eg.
Another reason is having a similar car in stock and you're effectively competing against yourself, rare but it has happened.
Other ones may be models that have historically sat for a long time on the forecourt so it's much quicker to realise the cash through auction - the i8 and 2 Tourer for eg.
Another reason is having a similar car in stock and you're effectively competing against yourself, rare but it has happened.
hyphen said:
Pistonheader101 said:
Bargains to be had
BCA are currently closed to the public due to Covid. And with only profit making trade buyers attending, the bidding should be more sensible.Argleton said:
Nearly half of that list have more than 60k miles, it not worth it for a main dealer - that's really independent dealer stock nowadays.
Other ones may be models that have historically sat for a long time on the forecourt so it's much quicker to realise the cash through auction - the i8 and 2 Tourer for eg.
Another reason is having a similar car in stock and you're effectively competing against yourself, rare but it has happened.
True, except the mileage point as Mercedes are doing it too with low mileage carsOther ones may be models that have historically sat for a long time on the forecourt so it's much quicker to realise the cash through auction - the i8 and 2 Tourer for eg.
Another reason is having a similar car in stock and you're effectively competing against yourself, rare but it has happened.
I understand it's a risk buying at auction and their fees are huge for private buyers, but buying a car still under manufacturers warranty could be appealing
Edited by AlexNJ89 on Tuesday 25th August 18:56
ralphrj said:
When I was at MB they had an in-house Used Car Remarketing team that handled ex-employee and ex-daily rental hire cars. My understanding is that cars were graded on condition (A/B/C).
A grade cars went to the used car dealerships that MB owned themselves (called MB Direct at the time).
B grade cars went to closed auctions for franchised MB dealers.
C grade cars went to open auctions.
There is a good chance that BMW did the same.
Therefore, these cars have probably been inspected and were not considered good enough to retail through the franchised network.
I suspect BMW did something similar. A grade cars went to the used car dealerships that MB owned themselves (called MB Direct at the time).
B grade cars went to closed auctions for franchised MB dealers.
C grade cars went to open auctions.
There is a good chance that BMW did the same.
Therefore, these cars have probably been inspected and were not considered good enough to retail through the franchised network.
My 1st BMW in 2005 was a 2004 320td Compact that had been a BMW UK car but I bought it from Scotthall in Chandler's Ford.
AlexNJ89 said:
True, except the mileage point as Mercedes are doing it too with low mileage cars
I understand it's a risk buying at auction and their fees are huge for private buyers, but buying a car still under manufacturers warranty could be appealing
Many of those are staggeringly low mileage for the age. They’re all out of warranty on age and my guess would be owners/drivers have not had them serviced annually as they should have so they can’t be sold as approved used.I understand it's a risk buying at auction and their fees are huge for private buyers, but buying a car still under manufacturers warranty could be appealing
A poster on one of the MB forums I visit bought an unserviced C Class at auction and the engine failed shortly after purchase.
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