By: Gov Auctions | 4 April 2020
Coronavirus COVID-19 and the impact on car and auto auctions
There are many fears in the global economy and what the future may hold and the car auction industry will also be impacted. While the auto industry is not immune from operational changes, technology means that it is able to adapt to the new world better than most.
Short Term Impact
The most obvious, immediate, and short term, impact of the Coronavirus is that live auctions will be halted. Large (or small) groups of bidders should not be allowed in small spaces. Safety of people attending live auctions and auction staff is paramount and so live bidding and vehicle inspections are not possible right now. In time this will return to normal. We just know when.
But the auction industry has utilized technology for years now to conduct online auctions. Ebay is the most well-known online auction platform in the world and there are many others. Technology and software exists to easily connect sellers with buyers in an online forum and so the instances of online auctions are increasing. Just because people are home in isolation does not mean that they cannot purchase via online auction. All you really need is a credit card.
Auctions Are Evolving And Thriving
Consumers will always want to buy new and used cars. People are continually updating their vehicles and the current Covid-19 environment does not take that away. Buyers and sellers, along with auction companies, should embrace the current environment. Dealers may struggle at present but auctions shouldn’t. This may even signal the new normal for the auction industry. There will always be shoppers who want to see and feel the vehicle prior to purchase. But we are also seeing more and more people happy to buy online given the protection for such purchases has improved in recent years.
So even through you may not be able to leave the (comfort) of your lounge room for a while, don’t let that stop you buying your next car at auction. Many people aren’t!