Who Is Buying Pickup Trucks From Auctions?
Over the past 10 years the crowd at a pickup truck auction has become much more diverse. In the past, the bidders were primarily composed of used truck dealerships who are looking to bolster their inventory. Today, pickup truck auctions have become an excellent source of savings for other opportunistic buyers as well. While some people believe this has led to an increase in use truck prices at auction this isn’t always the case. In fact, the type of buyers at an auction will directly impact what the final purchase price will be. In general, you can break down the different types of people at a pickup truck auction into three fundamental categories.
1. The Reseller
The first type of person at a pickup truck auction is the reseller. This encompasses both representatives from used vehicle dealerships as well as private individuals who purchase one or two trucks at a time, repair them, and then resell them. This category of better it is typically looking for popular makes and models which are highly sought after. This will allow them to turn over their inventory quicker and begin purchasing new units at the next auction without worrying about liquidity. This is particularly true for individual resellers because they do not have as much capital to invest in vehicles if they are not able to resell them quickly.
2. Fleet Managers
Fleet managers are relatively new to the pickup truck auction scene. In most cases, they are not fleet managers for huge company because those companies will purchase new drugs and actually enter them into auctions once they are done with them. This allows them to deduct the depreciation which provides noticeable tax benefits at the end of each year. The type of fleet managers who attend used pickup truck auctions primarily represent small businesses. For example, home repair companies, lawn care companies, and a variety of service oriented small businesses. These managers are looking for powerful, reliable trucks that can be used on a daily basis to tow and haul items to and from the worksite. In general, they are trying to save money on a used pickup truck but will not sacrifice quality to do so. As a result, they are normally only going to bid on two or three target vehicles at any given pickup truck auction.
3. Private Buyers
The final group of people who are buying trucks at used pickup truck auctions are private buyers. Private buyers are simply average people who are looking to save money on a reliable used truck. In most cases, special features and capabilities are less important than overall reliability and final price. Private buyers typically show up to an auction with a larger potential target list because they are less picky about make and model but emphasize making value purchases or getting the most bang for their buck.
Overall, each category of individual at an auto auction will affect the overall bid price however not in the way you may think. Everyone is looking to save money without sacrificing reliability but each group of people is looking for something very specific. The reseller is looking for highly sought after makes and models. Fleet managers are looking for powerful trucks that can tow and haul equipment on a daily basis. Private buyers are simply trying to save money on a quality used truck. Since each category of people is looking for something different they will not increase the overall price of pickup trucks at auction outside of their respective target units.