Trade to Trade?

▶ One by-product I’ve noticed of the way in which it’s now becoming harder for non-trade account holders to buy at the big auction groups is an increase in trade-to-trade activity; where dealers buy from one auction and sell through another. This can actually be a good line of business – you don’t make much out of each car, but £200 each on four or five a week soon adds up. You do, though, need an exceptional knowledge of the market – changing trends in particular – and when margins are tight you need to know exactly what your Buyers Premium and other costs are. It also helps a lot if your purchase volume is sufficient to justify being in the lowest price-band for auction charges. But you play it right and choose cars that someone buying a car to use from a provincial auction might be attracted to, there’s money to be made from this sort of trading. And, of course, because you’re selling at auction, there’s nil-chance of any ‘about this car you sold me’ comeback a month or three down the line.

From a buyer’s perspective, such cars can be tricky to spot, and there’s always the risk that a particular car will be at auction because it’s a dog that cannot be retailed. However, the good thing about independent auctions which do still welcome the public is that you can actually talk to the auction staff, and while they won’t tell you who has entered a particular car, they will usually tell you everything they do know, and the type of vendor – big trade, small trader, etc., that a car has come from.