⚠️ Educational-Use Notice: This article is for educational purposes only and reflects professional opinion and experience within California's dealer-licensing and auction industry. It is not legal, financial, or tax advice. Always confirm procedures with the California DMV, CDTFA, and the auction platform you use.
Dealer auctions are where California's automotive market really moves. Retail customers see the showroom, but licensed dealers see the lanes—physical or digital marketplaces where inventory is sourced, traded, and liquidated daily.
Understanding how each auction type functions helps you choose the right lane for your business model.
| Model | Description | Best For |
|---|---|---|
| Physical (Live or Simulcast) | Traditional in-lane bidding with optional online simulcast; preview and test before sale. | Dealers who want hands-on inspection, local transport, and relationship building. |
| Digital (App or Web) | 100% online, timed or live streaming auctions with inspection reports, video, and audio. | Dealers sourcing statewide inventory efficiently, with data-driven decisions. |
Pro Tip: Many California dealers blend both: previewing local Manheim or ADESA lanes while also bidding digitally on ACV or OPENLANE.
👉 See: Get Auction Access in California
Calculate the true all-in cost:
Hammer + Buyer Fee + PSI + Transport + Recon + Floorplan Interest = Total Cost
Anything above your retail target margin = pass.
| Fee Type | Typical Range | Notes |
|---|---|---|
| Buyer Fee | $150–$900 tiered by sale price | Always check each platform's schedule. |
| Post-Sale Inspection (PSI) | $75–$200 | Optional but protects against arbitration loss. |
| Storage / Load-Out | $25–$50 per day after deadline | Avoid delays. |
| Title Courier | $20–$40 | For mailed titles. |
| Transport | $0.60–$1.20 per mile avg in CA | Increases sharply for northern routes. |
| Recon | $350–$1,200 avg | Tires, brakes, fluids, detail, safety. |
💡 Pro Tip: Add 10% buffer to every bid for post-purchase surprises.
To win arbitration, you'll need:
Create a fixed target for profit per vehicle:
| Vehicle Price Range | Margin Goal |
|---|---|
| Under $10K | $1,200–$1,500 |
| $10K–$20K | $1,500–$2,000 |
| Over $20K | 10% gross margin minimum |
Track results per auction source to see where your ROI lives. This will help you focus on the most profitable platforms and sourcing strategies.
All auction purchases tie back to DMV and tax requirements:
Problem: You've already spent time researching; you bid above your max to "win"
Solution: Set max bid in advance; stick to it regardless of competition
Problem: You bid $10K; discover transport is $1,500 instead of expected $800
Solution: Get transport quotes for all locations BEFORE bidding
Problem: You skip PSI; discover $1,000 in undisclosed damage; arbitration loses because damage wasn't documented in CR
Solution: PSI costs $75–$200; protects you from catastrophic repair costs
Problem: You miss ROS deadline; DMV audit discovers missing submissions
Solution: Use ROS tracker; submit within 5 days of sale EVERY TIME
Problem: You use plate to run personal errands; DMV finds out; major violation (fines, license suspension)
Solution: Dealer plates are ONLY for transport, test drives, and demo purposes
Our pre-licensing and advanced courses teach platform-specific strategies, fee optimization, and real-world profit modeling used by top California dealers.