The Fundamentals of Auction Profit
Profit at auction comes down to one formula: Retail Value - Landed Cost = Profit. Your job is to maximize the spread.
Know Your Landed Cost
Before you bid, know your all-in cost:
- Purchase price (your bid)
- Buyer fee (typically 3-5% of purchase price)
- Transport to your lot
- Inspection and reconditioning
- Title and registration fees
- Any needed repairs
Set Your Max Bid Before the Sale
The single most important discipline in auction buying is setting your maximum bid before you enter the lane. Use tools like LaneDock to calculate your max safe bid based on retail comps and your fee structure.
Run List Management
- Import your full run list into LaneDock the night before
- Sort by deal score — focus on A and B deals
- Set alerts for specific makes and models your buyers want
- Mark your must-haves vs nice-to-haves
Timing Matters
- Tuesday and Wednesday sales often have less competition
- End of month dealers are trying to hit volume targets — more inventory
- Holiday weeks tend to have thinner buyer turnout
- Lane position matters — vehicles late in the run sometimes sell for less
Build Buyer Relationships
The best dealers have buyers lined up before they bid. Maintain a buyer CRM and match deals to buyers automatically. A sold unit is always more profitable than one sitting on your lot.