Benefits of Auto Auction Software Development for Used Car Businesses

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Posted on September 20, 2022

Every year, the auction industry makes billions of dollars, but only a small number of used car business owners venture into online auctions. 

Custom car auction app development from scratch or integration of auto auction software into your existing website will provide your customers with a convenient and hassle-free buying experience, thus, increasing your revenues. 


Read on to discover what improvements and opportunities you’ll get by implementing a tailor-made user car app for your business.

What is Auto Auction Software?


Car auction software offers a central platform to track used cars and customer details. Its main goal is to streamline the tasks related to executing, planning, and managing an online car auction. 

Such an app offers buyers the convenience of searching for cars based on their preferences and budget, as well as allows them to view many products at a go, compare prices, and make the best purchase decisions.
Benefits of Auto Auction Software Development for Used Car Businesses 2
As a result, the vehicle auction app development improves buyers’ bidding experience, which helps sellers generate more long-term value, bringing the site’s owner a consistent stream of profits. 

Why You Need an Auto Auction Software for a Used Car Business

Additional Stream of Income

Additional Stream of Income

Integrating car auction software into your used car business will ramp up your business as you’ll provide numerous auction-related services to many people worldwide.

Since a used car app is online, you won’t have to bear the costs associated with hosting actual auctions. Instead, you can use the software to get the maximum benefit (income) by specifying the desired selling price (reserved price) as well as employing different monetization channels. 

That’s how you can implement a subscription-based platform and charge sellers for the use of your service monthly or annually. As a part of the subscription, you can provide such services as VIN history reports, delivery, inspections, and other perks, which will bring you the lion’s share of profit. Also, some functionality can be a point of specific seller subscription, for example, the possibilities to check bidder’s proxies (max bid), view sales statistics and reports, bidder’s watchlist, etc. Or you can offer these features for an extra fee. 

Another revenue stream is up-sells and cross-sells when you offer related spare parts, etc. (we’ll talk about this feature in detail later).

Finally, custom car auction app development allows you to make money from different types of commissions, primarily from each vehicle sold. Some other commission cases might include: if a bid winner doesn’t pay for an auction they win, they’ll be required to pay a 4% hammer price fee to avoid suspension. If your auction is a site for multi sellers, you can offer them paid sponsorship opportunities such as advertising, listing, or appearing on the featured vehicles pages. The list could go on and on.

100% online solution

100% online solution

With an online auto auction, your business isn’t limited to specific working hours when customers can come to check out your products. A used car auction software offers flexibility as you don’t have to worry about showing up to a store daily to run your business. Thus, you can enjoy a flexible lifestyle where you aren’t tied to a particular schedule.

An online used car auction also eliminates the need for a central location to store cars as it’s entirely online. This saves the buyers and sellers money once a bid is complete; the vehicle is transported directly from a seller to a buyer.

Wide personalization car options

Wide personalization car options

The ultimate personalization is another crucial benefit of having an app for selling used cars. Sellers can choose the type of cars they want to trade based on their target audience. An online auction also doesn’t limit you to some vehicles; you can sell anything from salvage vehicles and used cars to boats, trucks, and motorcycles.

The best thing about online auctions is that businesses can offer extensive inventories of cars so that customers can set their specific interests (make, model) and get notified when the vehicle is in stock. This allows people to buy automobiles that best fit their needs and budget.

Upsells and Cross-Sales

Upsells and Cross-Sales

While selling new, used, or salvaged cars is profitable, auto auction software can also help your business become more profitable by motivating your customers to purchase additional vehicle accessories.

For example, you can sell vehicles with tracking devices or accessories for the vehicles you have in stock. The key to nailing this approach is understanding your customers’ needs. You should tailor your audience using the car auction app to increase your chances of success.

Proxies are at Your Disposal

Proxies are at Your Disposal

Online car auctions streamline time-consuming activities such as setting bids. With auction software, sellers can use a proxy to set their maximum bid, eliminating the need to sit constantly in front of the monitor. The system will bid on their behalf, automatically adding a minimum increment to the highest bid.

Minimum Personal Contact

Minimum Personal Contact

Customers may be more inclined to purchase cars on your website because they don’t have to interact with pushy salespeople. With an online auction shop, customers are their advocates and can request a car based on their preferences and needs. This increases customer satisfaction levels and increases their chances of referring other clients.

Fast Invoicing

Fast Invoicing

Once the auction is over, you don’t have to use the traditional method of entering all the bids into a spreadsheet to determine the highest bids or which one you’ll settle on. With car auction software, invoicing is made simple, as the tool displays all the bids on one page and ranks them from the highest to the lowest. Once you accept a bid, the invoice is automatically emailed to the customer.

A Wide Selection of Offers

A Wide Selection of Offers

An online car shop eliminates the awkward haggling over a car’s price as you can provide your customers with a wide range of offers to suit their budget. If the website is a platform for multi sellers, users can also find multiple auctions with different bids for the same model; hence they’ll be able to settle on a price that’s easier on their wallet. This will increase customer satisfaction, and more people may access the website as a result of referrals bringing in more business.


Get Custom Car Auction Add Development from DevCom


Providing a seamless shopping experience is key to your success as a used car business. Car auction app development has removed all the buying process’s confusion and stress.

Companies such as DevCom are helping clients accelerate their used car businesses and generate more revenue by creating robust online car auctions from scratch.

Contact us for a free consultation to discuss your company’s most optimal and effective IT solutions!  

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