Independent dealers packed into a room at the Fontainebleau in Las Vegas for an NIADA conference session to hear auction executives from Manheim, Copart, and ACV share strategies for buying wholesale cars at auction in today's market.
The message: The days of dealers relying solely on their local auctions are over.
"You guys used to be able to go down to one local auction and buy your 15, 20 cars that you need for the week and then go home. It doesn't happen anymore," said Doug Hadden from ACV Auctions.
Why it matters: Digital auctions let independent dealers expand their scope nationally and sometimes globally. Instead of being stuck with whatever shows up at the local auction, dealers suddenly have access to way more variety.
By the numbers: At Manheim Auctions, 70% of vehicles are now purchased online versus 30% in-lane.
"Just five years ago, it was pretty hard to sell an as-is car digitally. That's not the case anymore. Everything sells digitally," said Bryan Walker from Manheim.
When dealers buy online versus in-lane, the average shipping distance jumps from 350 miles to 600 miles.
Here's the challenge: Buying cars without physically seeing them requires completely different skills. And Hadden thinks too many dealers are rushing through the digital process.
"How long does it take you to get in the car, drive to the auction, get the spreadsheet, walk the entire auction? All the things that you do at the auction take time. Why is it when you buy a car online that you don't take time to look at every single picture? Zoom in on every picture. Read that thing front and back before you make the decision."
Success in the new environment requires dealers to trust condition reports and digital imagery from people they have never met. Hadden acknowledged this often feels uncomfortable for dealers, but said digital condition reports have become pretty darn accurate, even if they're not perfect.
For buy-here-pay-here dealers dealing with older inventory, Brett Adair from Copart recommended additional verification steps. Post-sale inspections by ASE certified mechanics become crucial, especially for green-light units that appear problem-free online.
Zooming out: Digital platforms have fundamentally altered the competitive landscape by opening auction access to international buyers.
Copart now serves 900,000 buyers across 190 countries, with roughly 46% of its vehicles leaving their original state or country entirely.
High-mileage repo vehicles frequently attract international buyers who see value that domestic dealers might overlook.
Bottom line: Dealers who master multi-platform buying, embrace new inspection technologies, and develop systematic approaches to remote vehicle evaluation will gain meaningful competitive advantages. While those still clinging to single-auction relationships and traditional methods face an increasingly difficult future.
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