Vehicles purchased at auction are typically marked up by up to 30% by car dealers. This is due to a combination of factors. Used cars at auction are less expensive than those found in dealer showrooms because they are not in perfect driving condition and sometimes do not attract many bidders.
Even though buying a car at an auction can be less expensive than buying from a dealership, the costs can be unpredictable. In addition to the car, taxes, a buyer's premium, registration fees, and any necessary repairs may be required.
Early bidding on desired items
Auctioneers frequently start an item at a higher price before lowering it as bids come in. This is a common strategy because when a price begins to fall, things tend to gain more attention.