Dealers Debate Online vs. In-Lane Auctions
From the November issue of UCD
Sourcing inventory remains a constant challenge for independent auto dealers, who are always looking for efficient ways to bring quality vehicles to their lots and meet consumer demand. The two primary methods today are browsing thousands of vehicles online or attending live auctions in person. Time, location and selection all play key roles in determining which option works best for each dealer.
That question – whether to buy online or in the auction lane – was a hot topic during a recent S1 20 Group meeting held in Irving, Texas. Alongside discussions about buy-list models, customer engagement, and the hiring of technicians, dealers compared their approaches to sourcing inventory and shared what’s working in their markets.
Some participants noted that purchasing directly from other dealers has become increasingly difficult due to high costs, while acquiring inventory from franchise dealerships has slowed as those stores hold on to more of their vehicles.
Jim Anderson, owner of Superior Car Credit in East Dundee, Illinois, opened the discussion by explaining that he now does most of his buying online – a big change from just a few years ago.
“I never thought I’d get to this spot. If you asked me five years ago if I could buy these cars online, it wouldn’t have happened,” Anderson said.
He added that online sourcing allows him to “cast a wider net” and access vehicles from farther away. He appreciates the efficiency.
Anderson pointed out some of the drawbacks of the auction, such as missing out on cars he’s researched when they sell before he can act, and the time it can still take to evaluate listings.
“It takes a lot of time to go to the auction,” he said.
He added that new AI features from online sellers have helped him better inspect vehicles remotely. Even so, he occasionally sends mechanics to check cars in person before finalizing a deal. Anderson also stressed the importance of understanding arbitration rules when buying online.
Other dealers have taken the digital leap entirely. Blaize Brimer of Pokey Brimer Auto Sales in Oxford, Alabama, said he no longer attends physical auctions at all.
“I haven’t been to a lane in five years,” Brimer said.
But not everyone has made the switch. Rondis Cavender of Cavender Auto Sales in Gainesville, Georgia, said he continues to prefer the in-person experience.
“I’m more successful at the physical auction,” Cavender noted.
In fact, one dealer group attending the meeting said they’ve moved back to buying live at auction after experimenting with online platforms.
NIADA 20 Group Moderator Brad White encouraged dealers to keep both options open.
“There’s a lot more dealers going online because of the convenience, but there are still benefits to going to the auction,” White said.
He emphasized that, whether buying online or in person, dealers need to understand each auction’s inspection and access rules before making purchases.
In the end, there’s no single best path – just different approaches that work for different operations. As inventory sourcing continues to evolve, successful dealers will likely find strength in mastering both worlds: the efficiency of online platforms and the confidence of in-lane buying.
