AFS shares some tips for auto dealers looking to make smart decisions at their next vehicle auction.

Press Release updated: Sep 15, 2017 06:00 PDT

Floor plan financing is most often used by independent auto dealers to purchase inventory in an auction setting but for dealers who do not regularly attend auctions, this can be daunting. In a new statement to the press, floor plan lender AFS shares some tips for how dealers can make smart choices at their next auction.

“First and foremost, plan ahead,” says the statement from AFS. “Most auctions will provide a complete list of available inventory in advance of the auction itself. Using this list, dealers can zero in on the specific vehicles they want to look for, and have a real game plan in place.”

With that said, it is also important for dealers not to overextend themselves. “The worst thing you can do is use a floor plan loan to buy so much inventory, your sales team can’t move it,” says AFS. “Don’t stretch yourself too thin, financially.”

AFS also recommends that dealers be friendly with the people running the auction. “You may not want to schmooze like a politician, but do introduce yourself and be friendly with the people behind the auction,” the company advises. “You never know what kinds of doors this will open for you.”

Another tip from AFS is to be vigilant about bad inventory. “Be on the lookout for low-quality vehicles trying to be passed off as good ones,” AFS explains. “Know some of the warning signs and red flags, and if needed, bring a mechanic with you to help you inspect the inventory.”

AFS shares one final tip for dealers: Be prepared for additional expenses. “You don’t just have to worry about paying for the cars you buy, but also paying to get them transported back to your dealership,” says AFS. “Make sure costs like these are factored into your budget for the auction.”

The bottom line? “An auto auction is a great opportunity for dealers, especially those who have a floor plan credit line behind them,” says AFS. “With that said, it’s important to proceed with caution and with care. Plan ahead, do your research, make a budget, and be ready to make prudent decisions at your auction.”

AFS provides financing services to dealerships throughout California, allowing independent dealers to build up their inventory without tying up all their finances. More information about the company and its services can be found on the web at www.useafs.com.

ABOUT:

AFS is a financial services company that works with auto dealerships throughout California, providing a full range of offerings that include credit lines, floor planning, and beyond. AFS can also provide dealerships with access to top-of-the-line marketing and legal services. More information about the company can be found online at www.useafs.com.

Source: Auto Finance Solutions (AFS)

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