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Re: Yeah but Posted by Snowmobile [Email] (#686) [Profile/Gallery] (more from Snowmobile) on Thu, 24 Jan 2013 08:32:53 In Reply to: Yeah but, ELaw [Profile/Gallery] , Thu, 24 Jan 2013 07:07:35 Members do not see ads below this line. - Help Keep This Site Online - Signup |
Someone with more knowledge may be able to explain this better (NoSnaab is an expert on the auctions I think), and it may vary regionally, but my impression from speaking to a couple sales guys at our local (now long gone) Saab dealer was that lease returns generally went to auction and they would get some of their cars as off-lease from auction, though I think there was a "first dibs" kind of deal for the Saab dealers, so Saab dealers were able to pick out the nicer ones before they were made available to wider auction... the trade ins were evaluated and if the mileage was too high or if there was more than a certain value of damage on the record (eg even parking lot damage repairs), they would not CPO and sell it - what they did with those was put them up for sale "as is", and if no buyer surfaced in the week or so, they'd dump them in bulk (ie a single sale price for a group of trade ins) to go to auction or someone else... often a new dealer doesn't really want other brands on the lot...
some of those "corner parking lot" used car dealers have ins with specific new dealers (eg I spoke to one who grabbed all the unwanted trade ins from the local subie place - it often had saabs, volvos, and audis as a result, as well as other cars and high mileage and/or rougher looking subies)... the dealer I bought our 9-5 from had an "in" with a Hyundai dealer...
Others that go to auction are more interested in the nicest cars and are willing to pay more for that, and it is reflected in their prices. I don't think there is much more to it than that. Some probably more often take their chances on the cheaper dregs...
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