The Money Is Made in the Buy: An Old-Timer’s Guide to Dominating a Dealer Auction

I remember my first car auction. I couldn’t have been more than 14, chasing my dad around the lanes, trying to soak it all in. But even with that upbringing, I’ll never forget the first time I stood in the arena as a dealer myself. The roar of the engines, the blur of the cars, the auctioneer's fast-paced chant—it’s enough to intimidate anyone. You see the pros bidding, cool and confident, and you’re clutching your list, wondering if you should raise your hand for that car you think you want.

Let me tell you: that feeling is completely normal. I’ve been doing this for over 25 years, and I still get a rush. But I’ve also learned that in this business, the old saying is the gospel truth: the money is made in the buy. Your profit isn’t decided when you sell the car; it’s locked in the second the auctioneer points at you and yells "Sold!"

Here’s my playbook for walking into any auction, knowing exactly what you're getting, what you'll pay, and how you’ll profit.

Part 1: The Pre-Game — Your Strategy Before the Sale

Success at the auction starts hours before the first car rolls. You have to do your homework on the metal.

Arrive Early and Walk the Lot

Get to the auction as early as they’ll let you in. This is your only chance to physically inspect the inventory. Your goal is to find an auction with a decent test track where they’ll let you drive the cars. Some auctions have stopped allowing test drives, which makes it incredibly tough to buy with confidence. If you can't drive it, you're just gambling.

A Quick Word on Etiquette: When you test drive a vehicle, be respectful. These guys are trying to run an efficient sale. Always put the car back in the exact spot and direction you found it. The cars are sorted that way for a reason, and messing it up is a rookie move that won't go unnoticed.

Systematize Your Inspection

When you’re new, you need a system. Create a predetermined checklist for your vehicle inspections and use it every single time. The more you can make your process automatic, the fewer expensive mistakes you’ll make. When you’re walking the lot, have your All-Weather Vehicle Appraisal Forms on a sturdy clipboard. Don't rely on memory.

Part 2: Doing the Math — How to Calculate Your Max Bid

This is where you make your money. Every car will have a sticker on the windshield. Use an app on your phone (like KBB’s own, Autoniq, or others) to scan the VIN. This will pull up the Kelley Blue Book value, which is the industry standard. It will give you several numbers, but you need to determine your actual selling price for your market.

The Max Bid Formula

Once you’ve set your target retail price, work backward to find the absolute maximum you can bid.

Part 3: In the Arena — Bidding Tactics of a Pro

When the sale starts, the cars stream past, and it’s easy to get lost. This is why your notes are critical. You need to know in a split second which cars you want and which to ignore.

Timing is Everything

Most sales start around 9 a.m. Be there from the beginning. A sale has a natural curve; prices are often lower at the very beginning (before all the buyers have shown up) and at the very end (when people are tired or have spent their money). You can capitalize on that.

Know the Seller, Know the Bidder

• Who to Buy From: Pay attention to who is selling the car. You want new car store trade-ins, repos, and lease returns. Avoid general consignment cars. That’s just another dealer trying to offload their problems onto you. Don't buy another dealer's garbage.
• Who You're Bidding Against: Always know who you’re bidding against. If you don't see another hand in the air, be careful. The auctioneer might be taking a phantom bid "from the Coke machine" to run you up. It happens.

The Art of the Bid

Don’t just be the person who sticks their hand in the air until they win. You're leaving money on the table. When the bidding gets close to your max number, use a little strategy. Keep eye contact with the auctioneer, and when the other guy bids, pause for a second. Make it look like you’re thinking about it, like you're at your limit. Then, hit it again with a confident nod. This little hesitation can break the other buyer's rhythm and make them second-guess their own number. It can be the difference that saves you a few hundred bucks.

Part 4: After the Hammer Drops

You bought some cars. Great. Don’t lose track of your money now. Keep a running log of every dollar you've spent, and don't forget to factor in those auction fees.

For transportation, I suggest using the service offered by the auction, especially if you’re new. It’s usually economical and fast. Driving them back yourself only saves money if you have the time and manpower to spare.

Buying at auction is a skill. It takes practice, discipline, and a solid system. Follow these steps, trust your math, and never let emotion drive your bidding. That’s how you build a profitable inventory, one smart buy at a time.