Auction Sales As an Automotive Business Opportunity
A Home Business Article Contributed by Elizabeth Fox-Wise
Going One Going Twice...Auctions Can Be a Profitable Automotive Business Opportunity
Selling used vehicles through an automotive auction can be a lucrative business opportunity for some. Many used car dealers go to automotive auction houses to pick up their inventory. You may heard people in the automotive field in the past say that they got a car at auction. But where do these vehicles come from that are available for purchase at automotive auction? They could be coming from you if you build an automotive business opportunity that caters to the automotive auction market.
If you know how any type of an auction runs, you can understand the logistics of an automotive auction. The number one online auction house giant is Ebay. Many people are familiar with Ebay style auctions so we will use their style to make the analogy. At an automotive auction, businesses bring automobiles to the auction house and run them through auction. Other business owners will bid on the vehicles and the high bidder is the winner.
Your opportunity for a lucrative automotive business is to find inexpensive used vehicles and bring them to auction for the used car dealers to stock their inventory. This is much like some sellers will do on Ebay when they list items for sale under the whole sale or large lots categories. They are bringing merchandise to Ebay for other Ebay sellers to buy and resell, sometimes back on Ebay!
The Risks and Disadvantages of an Automotive Auction Business Opportunity
There are several risks and possible disadvantages to Automotive Auctions as a Business Opportunity. Perhaps the biggest hurdle for anyone wishing to sell anything at any auction is to find a merchandise supplier who can provide you with material that is consistently sellable at a price low enough for you to resell at often "rock bottom" auction prices. In this case, you need to find a steady supply of cheap but good condition vehicles as a low enough price to cover your auction overhead and still turn a profit.
Like Ebay, automotive auctions will charge a price for each vehicle that you run through auction (Ebay calls this a Listing Fee). Also like Ebay, you will pay a commission on each vehicle that sells. Unlike Ebay, your merchandise is not "virtually" at the auction house, your cars are physically there, so if they do not sell and you want to keep them there until the next auction, be prepared to pay a storage fee.
The Costs of an Automotive Auction Business Opportunity
You will need capital to get started in an automotive auction business opportunity. You will have to buy vehicles to run through auction and you will have to pay auction overhead fees to get started.
Like all auction sales, with an automotive auction there is always a chance that you will purchase vehicles that you can not sell or that you have to hold for awhile before you can turn them over (an example of this would be convertibles you picked up dirt cheap in December) But as will all businesses, the longer you are in business the better you will get at spotting and buying your merchandise and turning your automotive auction opportunity into a lucrative business.
