Using an online car auction is a great way to find everything from rare collectibles to energy-efficient family cars. The problem is that not all auctions are open to the public or allow for active bidding without paying an entry fee. That’s why ACV Auto Auction exists.
ACV Auctions uses an online wholesale vehicle marketplace for dealerships. Think more B2B than B2C. To get in and look around at what is being sold, you’ll need a dealer, a licensed representative, or another authorized representative.
The good news is once you’re allowed in, you’ll gain access to a massive selection of inexpensive vehicles. ACV Auctions offers clear ways to bid remotely, arrange financing, and coordinate transportation. It’s both a traditional and online auction. Here’s some ACV Auctions information to get started.
What Is ACV Auctions?
ACV Auctions is an online dealer-to-dealer (D2D) wholesaler marketplace. When dealers are vetted, they can look for clean-title used inventory from family SUVs with a third row to work trucks and modern EVs.
The main difference between ACV Auctions and more traditional marketplaces is location. Massive auctions that specialize in high-end luxury cars often take place only in places like Milan, Italy, or upstate New York. With ACV, you can do everything online or by phone. Internal vehicle inspectors examine inventory, list condition reports, and buyers can purchase remotely.
Who Can Buy Cars from ACV Auctions?
For any ACV auction review, make sure you understand that this offering is not public. ACV clearly states that only licensed car dealers or authorized representatives can purchase used vehicles on their platform. That requires a valid dealer license and an active AuctionACCESS account. Most of the registration forms also require a resale certificate, Power of Attorney (PoA), and ACH banking credentials.
It’s a little disappointing if you’re trying to find a used Toyota for your college-bound student. It’s great if you’re operating a small resale shop and need to scale your retail business. The lack of a mobile app the average user can download and use makes it more trustworthy because it follows strict wholesaler guidelines designed for the resale market.
How Does the ACV Auto Auction Work?
If you’re looking to expand your inventory of used vehicles and are curious about using ACV Auctions information, it’s a pretty clear-cut process:
- Register and gain access to ACV’s marketplace
- Confirm all supporting documents, including providing ACH banking info and the dealer’s license
- Browse all the vehicles from different locations
- Review any accompanying information on car conditions
- Place a bid for that car
- Complete payment and title requirements
- Arrange car transportation
Most auctions last about 20 minutes but can go up to two hours for those cars that are higher in demand. The trick is that winning an auction doesn’t immediately mean you have a profitable inventory. A dealer must consider the value cars bring to their business, not just whether they're reliable and have good gas mileage.
What Information Does ACV Provide About a Vehicle?
Buying a used car online can be risky. ACV Auctions works hard to reduce that risk by providing inspections and reports on titles, car condition, vehicle history, and more. ACV also uses a Virtual Lift system to capture underbody images. They go above and beyond to provide as much information to the buyer as possible. After all, the auction wants the sale as much as the buyer.
Even if a vehicle has an undisclosed problem, the Vehicle Condition Arbitration Policy applies. It outlines what buyers can do to dispute anything sold on the platform. These procedures and requirements make it more effective and efficient to resolve defects.
ACV also offers Purchase Protection programs so qualifying buyers have cancellation rights. The program has different terms and conditions, but it can offer more peace of mind the next time you’re considering 5-10 vehicles for your lot.
ACV Auctions Pros and Cons for Car Dealers
Feature |
Advantages |
Drawbacks |
|---|---|---|
Live Online Auctions |
Allows dealers to bid remotely on wholesale inventory without attending a physical auction |
Auction length varies, and competitive bidding can quickly increase acquisition cost |
True360 Inspection Reports |
Provides detailed condition information that can help dealers evaluate vehicles remotely |
Reports reduce uncertainty but cannot eliminate every risk associated with buying a used vehicle sight unseen |
In-House Transport |
Integrated transportation makes it easier to arrange delivery after a successful purchase |
Dealers may find different pricing or scheduling through an independent transport broker |
Mobile App Usability |
Lets dealers browse inventory, review vehicle information, bid, and manage purchases remotely |
Requires mobile or internet access and may not appeal to dealers who prefer inspecting inventory in person |
Can You Sell Cars on ACV Auctions?
Once you’re a qualified dealer, you can use ACV to sell any of your inventory. You’ll need to register for AuctionACCESS credentials and work with a local ACV Vehicle Condition Inspector, but it adds a new sales channel for businesses that may need access to a broader client market.
Buying and selling on ACV Auctions does include some transaction-related fees. Each buyer must follow a fee schedule instead of a universal fee for each purchase. Learning how to calculate the total purchase or sale price while also including expected acquisition cost, fees, transportation, financing, and reconditioning is dependent on the buyer or seller.
For example, ACV Auto Auctions also includes ACV Capital. This is the dealer floor plan financing arm of the business. Dealers can use floor planning for vehicle purchases, financing everything from buyer fees to transportation costs in one package.
How Do You Transport a Car Bought Through ACV Auctions?
When you win an ACV auto auction, you still need to get the vehicles you purchased from the auction lot to your dealership. ACV does have an integrated transportation system. It uses a network of over 3,000 vetted carriers that can provide both open and enclosed auto transport.
The good news is that shopping at an ACV Auction doesn’t lock you into their specific transportation system. You can always choose a competing company that offers the same benefits and more years of experience.
With Nexus Auto Transport, you get a company solely focused on door-to-door car shipping with nationwide access. Our massive carrier network ensures everything from a commuter sedan to a motorcycle is delivered safely and reliably where it needs to go. Learn more about Nexus in our complete auto shipping guide.
Is ACV Auctions Worth Using?
ACV Auctions reviews come down to whether or not you operate a business. If you’re a licensed dealer, it may be worth checking out what ACV offers. At wholesale prices and with a substantial inventory, you may find the items your clients want and a new supply chain you can use to scale.
If you are going the ACV Auction route, you should also run the numbers. Take the time to double-check all your financing and answer questions about profitability long before you get started. That way, when something from the lot arrives, you’ll be more likely to have a buyer set up and ready to go.
FAQs
Can a private individual buy vehicles directly from ACV Auctions without a dealer license?
No. If you want to purchase from ACV Auctions, you’ll need to be a fully licensed dealer or a legal representative. You’ll also have to sign up and register for the auction before you can place a viable bid.
What are the buyer fees and arbitration rules for disputed vehicle conditions?
Total transaction fees vary by situation. You can view the fee schedule after signing up for the platform. For disputes, you’ll need to review ACV’s arbitration policy and any available buyer-protection programs. In most cases, you have cause if the inspection report lacks certain information.
How does ACV handle shipping delays compared to independent transport brokers?
ACV has a strong carrier network to pick up the slack if there's a delay, but a company like Nexus Auto Transport may offer more options to fill gaps in delivery, including in rural areas.
Is there a penalty fee for canceling a winning bid on the platform?
Possibly. Winning a bid means you have a payment obligation. There could be fees when transactions are canceled or abandoned.
