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Auction Cars FAQ

Discussion in 'Tesla for Sale' started by Manzacoty, Feb 8, 2017.

  1. Manzacoty

    Manzacoty Member

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    I send out a weekly list of what is going through auction. Please PM me your email address and I can include you on the list. Please let me know if you have additional questions and I can add to this FAQ.

    Why does a Tesla end up at auction?


    Tesla’s end up at auction for a variety of reasons. The most common, is Tesla receives a car as trade in that they don’t want to retail (over 65k miles, previous damage, damage, etc.). They could be repossessed, lease has run up and brought by the bank. Could be someone traded into an ICE dealer and they bring them to auction.

    Why would I want to buy a car at auction?

    Simplest answer is speed (you can pick it up that day) and discount on pricing. Going this route isn’t for everybody, you can’t be as picky, car may have some damage, won’t have a sales person telling you about all the features, etc. While you can look at the car, you won’t be able to take it off the lot to have it checked out.

    While there is some discount ($1k – $10k), don’t expect to find a brand new loaded P100D for $25k.

    Do they have damages?

    Sometimes, each car has a Condition Report (CR) that rates the car on a scale from 1 to 5 (1 being lots of damage and 5 is in perfect condition). Any damage is itemized and explained on the CR, usually including pictures of the damage(s). Once you find a vehicle you are interested in, please send me the VIN and I can send you the CR.

    Do you need to be a licensed dealer to buy at auctions?

    The listings that I have all require all buyers to be licensed. We have the ability to purchase all over the country by I would recommend finding a local dealer/wholesaler that can get you into the auction to view the car and handle the paperwork. You can find a dealer by posting on Craigslist, visiting a small dealer lot and talking to the owner, posting on forums, etc. A pretty typical fee for a dealer to arrange this is around $1,000. Some may charge more given the dollar value of what a Tesla could sell for. If you do find a local dealer, please send me their details so I can refer in the future. We would be willing to work with some buyers that are out of state on a case by case basis. Please reach out to me and we can discuss the logistics.

    Can I tell which options or model each car has?

    Some are listed as 60/85 etc . But the only classification that is made within the database is a performance and non-performance model. Sometimes you can see from the pictures which options it has but your best bet is to go see it person. You can sometimes google the VIN number and if was at a retail lot previously, they might have it listed on the web.

    Does it come with a warranty?

    Disclaimer - please confirm with Tesla before assuming it comes with a warranty.

    Infinite Mile Warranty

    As long as the title is clean, anything less with 50k miles will come with the factory warranty. As far as I know, you cannot purchase an aftermarket warranty.

    All of our cars are sold as-is and we do not warranty any car.

    Again, please confirm with Tesla if there is any question about the warranty.

    How does financing work?

    The best and easiest way is to pay cash. You can do financing if you choose a lender first that will give you the cash before having the title. Sometimes the title is not delivered to the auction before the sale and they have 30 days to produce the title. If they do not produce the title, they will buy the car back for what you paid, plus any repairs you made to it. Please do not plan on buying a car at auction if you do not have the finances.

    What are the fees?

    Above the price you would bid on the car, you would also have to pay the following fees:

    Auction Fee: this varies from each auction but typically it’s 4.5% of the sell price and usually capped at $450.

    Dealer Fee: We charge $1,000 to handle the transaction. We can reduce that fee for cars priced less than $30k.

    Internet Purchase Fee: $50 – if we’re not bidding on it in person, the auction charges an additional fee to bid online.

    Tax, Title & License: This varies from state to state. Please review your states fees and regulations.

    If you live in Texas and buy from me (or another dealer) – you would pay the Tax, Title and License to the dealership and we would handle all the paperwork, registration and send you the plates. If you live out of state, you would take the title to your DMV and self-register.

    This is not my full time job. It’s a hobby for me and I’m a Tesla fan (own 1 right now, working on one for the wife). I just started this because I was getting a lot of request about auction cars so I put this together and will help anybody trying to get into a Tesla.

    How does the bidding process work?

    Each car is scheduled to go through the auction at a certain day and time. It is a live auction and there are dealers bidding in person and over the internet. There are typically reserves and if the reserve isn’t met, they will not sell the car. Sometimes, if the reserve isn’t met but it’s close to the reserve, they will call it an “if” or a “call” sell. In that case, they will go back to the seller to see if they are willing to sell it at the highest bid price. They usually get back to the buyer that same day to confirm the sell.

    What is the MMR?

    The MMR stands for Manheim Market Report. This estimates what the sell price of the vehicle will be. Please take this as a grain of salt with Tesla’s as it doesn’t factor in the options, battery size, etc. Also, it’s not as accurate because of the volume of sales of Tesla’s at auction. On average, about 15 Tesla’s are sold a week at auction. The MMR on something like a Honda Accord is very accurate as hundreds of these are sold every week. As mentioned above, the only distinction it makes is if it’s a performance or non-performance model.

    If the MMR is blank, that means there isn’t enough data available to predict the sale price.


    Please only request additional information, Pictures, Condition Report if you are serious about a car. As mentioned, I do this part time. Please feel free to reach out to me if you have further questions and I can update this FAQ.
     
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  2. bakoplan

    bakoplan Supporting Member

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    Manzacoty, this is awesome. Could you please share with me how to do a PM? If I click on the member name link below your icon it takes me to your profile page. I can put an entry there but it's public. Where is this illusive Private Message? Thanks, --Ben
     
  3. Jay Hawk

    Jay Hawk Member

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    Bump For the reason of *VERY USEFUL INFO*
    Thank you Manzacoty!
     
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  4. Manzacoty

    Manzacoty Member

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    I just tried to send you a PM and I got an error saying I could not start a conversation with you. That is strange because I've gotten and sent a lot of other PMs.

    Would someone mind trying to send me a PM to see if the issue on my end? Could I have been blocked for some reason?
     
    • Informative x 1
  5. bakoplan

    bakoplan Supporting Member

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    I wonder if it's me that's blocked...
     
  6. Manzacoty

    Manzacoty Member

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    I've been traveling so I'm a little behind. I get several requests a day to be added and it's becoming a bit of a manual process to add everyone in a spreadsheet. Im going to look at something like constant contact and add a link to my signature to help automate this process.

    Please be patience if you asked to be added and you haven't heard from me!
     
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  7. Manzacoty

    Manzacoty Member

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    Alright - I setup something with MailChimp - this will also make it easier for someone to unsubscribe if they don't want to receive the emails anymore.

    As an FYI - I'm going to make some changes to the FAQ. Mainly with how the process will work if you use us as a dealer. I mainly do this for friends and family and I front the money as I know they are good for it. When we bid on a vehicle we're obligated to pay the bid price so I'm on the hook the full amount if won. We're a small dealer and I do this part time so a $50k hit with small margins on this service would devastate our business. I might be a little delayed on this week's listings as I'm going to update the FAQ and I'll have to learn how to use MailChimp.

    I consider myself pretty tech savy but I'm an accountant by trade so this using SAS isn't second nature to me as it is with most of you guys on here.
     
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  8. Nototrader

    Nototrader Member

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    How do I get in touch with you to discuss a transaction? Thx.
     
  9. Manzacoty

    Manzacoty Member

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    Please PM. Would rather not post my number on public forum.
     
  10. lifeforce

    lifeforce New Member

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    I also can not find the PM link on your profile.
    I did not see a link or anything for the MailChimp so I will guess you are still working out how to use MailChimp.
    please send me a PM or something so I can talk with you.
    thank you for your time
     
  11. jgaines26

    jgaines26 Member

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    Same here please...
     
  12. Manzacoty

    Manzacoty Member

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    Sign up for my weekly listing of Tesla's going through dealer auctions
     
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  13. byeLT4

    byeLT4 Member

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    ^Awesome, thanks!
     
  14. Nototrader

    Nototrader Member

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    How do you pm somebody?
     
  15. voltaren

    voltaren Member

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    Very generous of Manzacoty to spend time on this and include other interested parties.

    Food for thought, though...

    I am also a Manheim member. I've been monitoring sales for quite some time. Just a few comments:
    - Manheim is the largest wholesale auction source with locations just about everywhere. Not the whole auction picture, but a good part of it.
    - Like Manzacoty said, auction cars could have prior damage, higher miles, rougher shape. I just saw a 16 S70D with 3,000 miles that was in terrible condition.
    - The prices are surprisingly HIGH given the uncertainty with the cars. Many times you cannot drive the car - granted, many are under warranty, but there is a certain level of risk with auction cars.

    Cost savings?
    See attached screenshot of 2015 Model S 70D auction results--these are the auction hammer prices (not including auction fees). I'm going to say $64,000 for a 10k mile 70D. Don't know the full options suite, but I'll assume they're moderately equipped.

    Now, look at Tesla's CPO program. Tesla goes through the car, performs any required maintenance, and adds an additional 4 yr/50k service plan. I found a 2015 70D w/ 7k miles for $66,500: Model S 70D 5YJSA1E24FF109920 | Tesla.

    With the auction, you may get the car quicker, but at least for me, ~$2000 difference is not worth it given the Tesla CPO program.

    70d.gif
     
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  16. Manzacoty

    Manzacoty Member

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    I don't disagree at all. The ideal buyer is someone wants a car that Tesla won't retail. For example, my car I bought at auction with 85k miles.
     
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  17. voltaren

    voltaren Member

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    Absolutely, and that is where you can get the great deal.
     
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