How to Run a Car Auction

Reputation is everything when dealing in used cars. Two phrases can make or break a business--"As Is" and "Buyer Beware." Buyers at an auction don't have time to take the car to a garage for inspection, so they rely on the auctioneer to inform them accurately about the history of the car.

Instructions

1. Systematize registration of buyers prior to the auction. The Internet is a cheap and easy way to have buyers pre-register for the auction.

2. Create a registration verification team that double-checks all buyers the day of the auction. Each buyer must have their own registration number or code.

3. Decide if you can have registration on the day of the auction. Make sure all materials are available and a designated area is easily accessible.

4. Plan for car parking--there must be an area large enough to accommodate the buyers. Consider a valet service.

5. Organize the cars for sale by make and model. A buyer friendly atmosphere is an auctioneer's goal.

6. Determine how close the buyer can get to the cars for sale. Provide specific hours when people can view the cars.

7. Expedite the day of the auction with raffles, entertainment, T-shirts and food vendors. Work can be fun.

Tips & Warnings

• Disclose as much information as you can about the cars you are selling.

• Consider a valet service to eliminate parking issues.

• Constantly be aware of the auctions reputation and your own--bidders need to believe in the company or people who are running the auction.