A Manheim Auto Auction is an auction of cars in bulk where the bidders are car dealers only and not members of the general public. In contradiction to a public auction, this is a closed bidding process wherein the eligibility of bidders is determined by being an authorized automobile dealer and be registered as a dealer with Manheim Auto Auctions. Even people selling cars out of their homes cannot enter a Manheim Auto Auction unless they are licensed auto dealers. It’s tough to get registration as car dealer because apart from a comprehensive car dealer test, one has to submit requisite bond, have a tax ID, ample insurance, in many cases get approval from city council, obtain an occupation license, and have warehousing space.
Previously, car dealers used to give secret underground entry into Manheim Auto Auctions to their premium clients, but now that’s not possible because these auctions have taken enhanced security measures to prevent this. Basically, unless you are a licensed, insured and bonded automotive dealer it is impossible to physically enter. The only other hope for such a purchaser without these credentials would be to befriend a car dealer and obtain advance list of all cars included in the auction, specify the car model one has an interest in, and work out the manner of payment to him. Manheim Auto Auctions require full payment of auctioned vehicles on the spot. Moreover, such dealers would also expect to be paid over and above for the trouble of procuring a car from the much sought after Manheim Auto Auction.
This craze for Manheim Auction cars is triggered by the following facts:
- These are very top end and high class auctions in which only cars in tip top shape are allowed to participate. This is not to say that cars which are rebuilt to pass off as original do not pass through these auctions, but with participants being car dealers, these frauds routinely get caught.
- Secondly, the popularity of the Manheim auction is because the rates there are wholesale and much lower than the fair market value that is obtained for individual’s cars at other auctions.
- The third reason for purchase of cars from a Manheim auction is that the auction vehicles have great value for the money, because mostly they are: leased cars returned after expiry of the lease, cars from car rental agencies, antique cars being sold by collector dealers, cars over 4 year old but in extremely good condition.
The high value for money that these cars can command is basically the reason for the huge public intrigue in Manheim Auto Auction vehicles.