Hesitant To Source Online
As a result of restrictions in place because of the coronavirus auctions have all temporarily switched to online sales only. For dealers that have long since embraced online sales this hasn't proved to be a disruption in the slightest but for others it has been a steep learning curve. A large majority of dealers still prefer to attend physical auctions so that they can inspect vehicles in person which means they have never bought vehicles online. Suddenly they find themselves forced into an auction format that they don't fully understand or trust.
Peace Of Mind With Post Sale Inspections
Vehicle post sale inspections (PSIs) are not a new thing and a lot of dealers that buy in person, do add them to the vehicles that they acquire at auction. Even when buying in person it's easy to miss something so the PSI is a sensible addition to shield you from unforseen and costly repairs. When sourcing from online only auctions adding a PSI to the vehicles you acquire should really be standard practice; it will protect you from problems that were not apparent in photos or listing information and also serves to restore confidence in the process that can be lost when buying online. For those of you that are unfamiliar with PSIs, some details are listed below:
ADESA's PSI is available for a 7 or 14 day period. For online purchases, eligible vehicles will display the PSI icon and coverage is provided for $500 in cumulative defects. If an item or part fails during the PSI coverage period, the item will be replaced or repaired at ADESA’s discretion. A vehicle must not have accumulated more than 200 miles since purchase and if the auction chooses to reimburse the dealer for items on the checklist that fail or were not discovered in the PSI and the vehicle is still within the applicable PSI coverage period, the auction will reimburse the dealer for the actual expense of repair or replacement up to a maximum of $1500.
Manheim's PSI is also available for 7 or 14 day terms. Dealers can add them automatically for all eligible vehicles, at the time of purcahse or for up to 5 hours after the sale is complete. Coverage extends to Green and Yellow Light vehicles under 125K miles that are within 200 miles of odometer reading at time of sale. If an inspected item passes during the inspection, but then fails during the PSI guarantee period and costs $500 or more to repair or replace, the defect is eligible for claim resolution with Manheim. Prices range from $110 - $250 for vehicles up to $49,999 and are $50 more for every $10,000 increment above $49,999.
Cox's Deal Shield covers 121 different auction locations across the country. The DS360 guarantee protects wholesale vehicle purchases and gross profit for up to 21 days and 360 miles. If a dealer decides that they no longer want a vehicle, for any reason whatsoever, they can return it for a full refund.
These are just a few of the available PSI programs that are available. Dig into PSI details or available protection plans at your auction of choice and take advantage of them to increase online buying confidence while protecting your margins.