Physical Auctions vs. Digital Marketplaces: Everything You Need to Know
3 mins
Dealers today now have more wholesale used vehicle inventory sources available to them than ever before. From your typical physical auction to buying from a digital marketplace (sometimes called an online auction), there are a variety of ways for dealers to source inventory. So how do you choose which is right for you and your business? Let’s talk about the key difference between the two to determine which aligns best with your needs.
Time
Traditionally, buying a car at a physical auction means working around the auction’s schedule, often involving hours of waiting and bidding when on-site. Not to mention the commute time it takes to get there and back. Attending a physical auction can easily consume an entire day when all is said and done, taking you away from your lot and your customers. When purchasing from a digital marketplace, there’s no need to show up in person or wait for auction day. You can conveniently source vehicles 24/7 with just a few clicks, anytime and anywhere.
Inventory
Buying at a physical auction typically confines your access to inventory within a small local proximity. The only inventory available is what is physically there in the lanes. Buying digitally means you can tap into a nationwide network of sellers, broadening your options and providing access to a diverse range of vehicles across different regions around the US. This expanded reach facilitates finding the perfect car to meet your specific needs and preferences. Not to mention that when using OPENLANE’s digital marketplace, you have access to thousands of off-lease vehicles daily, rental and dealer trades, which gives you an extensive range of options. OPENLANE consolidates this inventory into one marketplace that you can then use expanded filters to find exactly what you are looking for. Whether you are in the market for a reliable high-mileage vehicle or a high-end luxury car, OPENLANE can help you easily find what you are looking for.
Inspections
Attending a physical auction, you can inspect the cars yourself by seeing, touching and hearing them. It may seem like buying a car online is risky, but in reality cars listed on online auctions have already gone through a thorough inspection process. At OPENLANE, before a car is listed on the marketplace it has already gone through a detailed inspection done by experienced inspectors. The inspectors look at both the inside and out, and test-drive the cars, documenting all their findings in a comprehensive inspection report. OPENLANE’s condition reports employ cutting-edge technology and artificial intelligence to consolidate the results of onsite inspections of each vehicle. OBD codes are fed directly from our BlueDriver scan and Code Boost IQ will call out if any trouble codes indicated. OPENLANE’s Visual Boost AI™ uses artificial intelligence to highlight detected exterior vehicle damage, making it easy to determine a vehicle’s condition and valuation. OPENLANE also features audio engine recordings to allow buyers the chance to listen to and diagnose potential problems with the engine. All this, combined with OPENLANE’s As Described Guarantee gives dealers complete peace-of-mind when purchasing a vehicle digitally.
Cost
At physical auctions, the buy fees and cost for insurance products can add up quickly. On top of these fees, there are expenses like gas mileage for your commute and possibly hotel costs if the auction is far away. Buying digitally offers upfront transparency, allowing you to see clearly and immediately what the buy fee will be. Digital marketplaces such as OPENLANE not only offer transparent buy fees but also feature exclusive promotions and loyalty programs. And beyond transparency, OPENLANE’s fees are lower, saving dealers money: in a recent survey* of publicly available competitor base fee schedules, OPENLANE’s were the most competitive in the industry.
Buying on OPENLANE
When comparing the two, buying from an online auction offers many advantages to dealers looking for an efficient way to buy wholesale used vehicle inventory. OPENLANE is committed to providing a fast, easy and transparent way to sell and source used car inventory. With exclusive off-lease inventory not available on any other digital platform or physical auction and thousands of vehicles from franchise and independent dealers, OPENLANE offers a truly unique and unmatched selection of inventory with the lowest base fees in the industry.
Check out how OPENLANE can help your dealership right now at openlane.com.