With 93% of dealers facing challenges when sourcing sufficient stock for their forecourts, many find themselves relying more heavily on car auctions to keep inventory up.
As motorists keep hold of their vehicles for longer and the impact of the car parts shortage is still being felt, we’re seeing dealers having to utilise alternative channels to keep their pitch fully stocked.
When it comes to the biggest challenges dealers are facing when sourcing stock at auction today, three big things that standout:
Costly auction fees
Representing the single biggest expense for dealers when purchasing stock at auction, the associated fees significantly increase the cost of acquiring a vehicle – ultimately eating into profit margins.
While fees can vary, it’s reasonable to assume that independent dealers will need to spend between £300 and £800 in fees for every car they purchase at auction.
This is a huge amount of money and can really put smaller dealers at a competitive disadvantage compared to larger dealer groups who secure more favourable rates due to the volume of vehicles they’re purchasing.
A single auction-fee structure like ours means that dealers are guaranteed the most competitive fees regardless of the size of their dealership. This is particularly important today, as used car prices are already high, and car buyers are spending longer shopping around to find the lowest price possible.
In the current climate, a few hundred pounds extra in auction fees and therefore a smaller metal margin could be the difference between selling a vehicle quickly or risking it sitting on a pitch losing money.
Needing to attend in-person auctions
The rise of online auctions during the pandemic proved to dealers that it is possible to source, bid and buy stock online. With a return to in-person auctions in the years since, some dealers may feel the need to physically attend auctions for fear of losing out on the best stock.
With that said, it can be challenging for smaller dealerships to juggle attending in-person auctions with making sure there’s enough people left onsite to help sell the vehicles they already have in stock.
For anyone without a dedicated buying team, the flexibility offered by online auctions can be game-changing. Not only is no time wasted travelling to-and-from in-person auctions, but there’s simply more choice as dealers have the option of bidding on vehicles from across the UK.
Some of the technology offered by online auctions can mean dealers can better utilise their time while still bidding on desirable stock. For example, our proxy-bidding function provides dealers with the chance to benefit from automated bidding. It works by offering bids in one bid increments within a budget set by the dealer – meaning dealers can spend less time manually monitoring auctions.
Accurately appraising vehicles
Incomplete or missing information can be a major challenge for dealers looking to source stock online.
Without descriptions that go into detail about a vehicle, potential damage and clear supporting imagery, it can be difficult for dealers to have a true sense of the quality of the vehicle they’re bidding on.
To give you an idea of the level of detail online auction listings should be providing, we use a 24-point checklist for every car to ensure that all information is accurate. We also road test every single car so we can highlight mechanical issues and complete a full damage audit, including flat lays to pinpoint exactly where exterior imperfections are located.
My biggest piece of advice for dealers looking to use online auctions would be to make sure they feel as well informed about a vehicle as if it was parked in front of them. Make sure you get your questions answered and ask for additional imagery if you need it. You don’t want to collect new stock to find that it wasn’t as described.
John Hood is general manager at Auction4Cars
Challenges facing dealers when buying stock at auction
John Hood
June 17, 2025
Opinion & Commentary
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With 93% of dealers facing challenges when sourcing sufficient stock for their forecourts, many find themselves relying more heavily on car auctions to keep inventory up.
As motorists keep hold of their vehicles for longer and the impact of the car parts shortage is still being felt, we’re seeing dealers having to utilise alternative channels to keep their pitch fully stocked.
When it comes to the biggest challenges dealers are facing when sourcing stock at auction today, three big things that standout:
Costly auction fees
Representing the single biggest expense for dealers when purchasing stock at auction, the associated fees significantly increase the cost of acquiring a vehicle – ultimately eating into profit margins.
While fees can vary, it’s reasonable to assume that independent dealers will need to spend between £300 and £800 in fees for every car they purchase at auction.
This is a huge amount of money and can really put smaller dealers at a competitive disadvantage compared to larger dealer groups who secure more favourable rates due to the volume of vehicles they’re purchasing.
A single auction-fee structure like ours means that dealers are guaranteed the most competitive fees regardless of the size of their dealership. This is particularly important today, as used car prices are already high, and car buyers are spending longer shopping around to find the lowest price possible.
In the current climate, a few hundred pounds extra in auction fees and therefore a smaller metal margin could be the difference between selling a vehicle quickly or risking it sitting on a pitch losing money.
Needing to attend in-person auctions
The rise of online auctions during the pandemic proved to dealers that it is possible to source, bid and buy stock online. With a return to in-person auctions in the years since, some dealers may feel the need to physically attend auctions for fear of losing out on the best stock.
With that said, it can be challenging for smaller dealerships to juggle attending in-person auctions with making sure there’s enough people left onsite to help sell the vehicles they already have in stock.
For anyone without a dedicated buying team, the flexibility offered by online auctions can be game-changing. Not only is no time wasted travelling to-and-from in-person auctions, but there’s simply more choice as dealers have the option of bidding on vehicles from across the UK.
Some of the technology offered by online auctions can mean dealers can better utilise their time while still bidding on desirable stock. For example, our proxy-bidding function provides dealers with the chance to benefit from automated bidding. It works by offering bids in one bid increments within a budget set by the dealer – meaning dealers can spend less time manually monitoring auctions.
Accurately appraising vehicles
Incomplete or missing information can be a major challenge for dealers looking to source stock online.
Without descriptions that go into detail about a vehicle, potential damage and clear supporting imagery, it can be difficult for dealers to have a true sense of the quality of the vehicle they’re bidding on.
To give you an idea of the level of detail online auction listings should be providing, we use a 24-point checklist for every car to ensure that all information is accurate. We also road test every single car so we can highlight mechanical issues and complete a full damage audit, including flat lays to pinpoint exactly where exterior imperfections are located.
My biggest piece of advice for dealers looking to use online auctions would be to make sure they feel as well informed about a vehicle as if it was parked in front of them. Make sure you get your questions answered and ask for additional imagery if you need it. You don’t want to collect new stock to find that it wasn’t as described.
John Hood is general manager at Auction4Cars
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