How auctions work & how the vehicle condition is guaranteed

Sep 26, 12:43 PM

We locate, inspect, and buy cars and trucks at wholesale dealer auto auctions nationwide. Of course, one reason is vehicles at auctions cost $1000’s less than vehicles at retail dealerships. Another reason is that we can inspect those vehicles on the auction premises and obtain written guarantees of their condition.

1. When a vehicle is first consigned to an auction, the seller makes legal statements about its condition. The federal government has laws about vehicle disclosure at auction. The auction itself subjects every transaction to arbitrations policies before paying the seller for the vehicle. So, if a seller misrepresents a vehicle at registration, he is wasting his time and an amount of money is lost to him for sale fees, buyer fees, etcetera.

2. When a client shows interest in an auction pre-sale inventory listing, we send our licensed wholesale buyer to make a second physical inspection of the vehicle. He carries a paint meter, evaluates the interior, mechanical components, drives the auto, and uses every component on the vehicle to make sure it is in good working order.

He files a report of the current condition of the vehicle with us and the affiliated dealer. Thus eliminating any vehicles that do not match our specifications or yours. A written guarantee of excellent condition will be sent to you and made part of your transaction. The guarantee will be backed by us and the affiliated dealer assigned to your account.

3. Passing that, we buy the vehicle subject to post-sale ASE mechanic inspection & certification on the auction premises. That guarantees that we can return the vehicle to the auction if a pre-existing problem is found in the next thirty days and not stated in the report.

4. The vehicle is then transported to our affiliated reconditioning center for a fourth inspection in their shop. The vehicle is put in tip-top, ‘excellent’ condition and made ready for delivery to you.

We unconditionally guarantee the vehicle to be in excellent condition upon delivery to you. “Excellent” condition means that the vehicle looks great, is in excellent mechanical condition and needs no reconditioning or repairs. It has passed a smog inspection. The engine compartment is clean, with no fluid leaks. The paint is glossy and the body components and all interior parts are free of any wear or visible defects.

The vehicle glass has no defects. There is no rust. The tires are the proper size and match and are new or nearly new. This vehicle has a clean title history, verifiable with CarFax. All remaining factory warranty will be transferred to you. This vehicle qualifies for an extended warranty. This is an exceptional vehicle with all of the equipment and options stated above, in tip-top condition.

You are protected by these guarantees and federal and state laws. Knowing that, we only sell cars in excellent condition backed by franchised affiliate dealers capable of exercising your rights under those laws. They and us have legal obligations about the vehicle condition to the lender also.

Any misrepresentation to the lender can result in a charge of bank fraud. It is much easier for us to sell only vehicles in the excellent category using this method… that is also a key factor in reducing your cost-of-transportation.