A fact that many people do not know about is that the prices industry people pay at wholesale auto auctions influence what you will pay for a used car or what you used cars trade-in value is worth. Nearly ten million vehicles are sold through industry wholesale auto auctions every year.
The used car business relays on the ability of companies to sell the vehicles that they do not want and buy vehicles that they can sell on their lots. Date from these wholesale auto auctions is including in used car values everywhere. Even though individuals can not attend these auto auctions, knowing how they affect your used car prices means you will be able to get the best deal possible when buying a used car or trading in for a new car. Depending on your used cars condition the dealer will either send the car to an auto auctions or will sell it on the lot. If the car is selected for the lot then you will get a higher trade in value.
However, those vehicles destined for the auto auctions will have a lower trade in value. Auto auctions also help dealers determine the monthly payments for new car leases. When you apply for a lease the leasing company will often calculate the price between the new car cost and the estimate of what the car is working at an auto auction in two to three years. Therefore, if you are leasing a vehicle that has good value in about three years then you will be able to get lower lease payments.