14Jun
By: Eric Van Essen On: June 14, 2019 In: Export Tips, Taxes, Uncategorized Comments: 0

Buying from live auctions can be a great source of vehicles for export from Canada at wholesale prices.  Partnering with Techlantic to purchase from these auctions can be a great way to gain access and solve many common challenges.  These challenges include avoiding paying Canadian sales taxes,  coordinating logistics as well as ensuring you get the vehicle securely in a timely manner after payment.  Techlantic also offers trade financing where if desired, your balance payment can be made at time of arrival in your local port.

The easiest way to buy from auction is by placing proxy bids for vehicles through Techlantic’s account.  Techlantic can give read only access to multiple auction listings.  The most commonly auctions that Techlantic purchases from for vehicle export include Manheim Canada, Manheim USA and Adessa.   To request our read only login, please fill in the request form on the right.  Below is the basic procedure that we follow.

 

After requesting read-only access you now have the ability to look at all vehicles that are for sale.  There are multiple auction locations, auction lanes and times of auction.  Techlantic has the ability so buy and export vehicles from any location in Canada and USA.  It is important to understand all costs prior to placing bids and logistics costs will change based on location.  To keep things most predictable, it is beneficial to stick to locations which are most familiar with Techlantic such as major Canadian cities such as Manheim Toronto, Manheim Vancouver and Manheim Halifax.

There are a couple ways to determine what price the vehicle will likely sell for in auction.  When accessing Manheim auction, the MMR (Manheim Market Report) price is a helpful indicator but it has the possibility of missing major options and trim levels that should adjust the price.  Another consideration is the condition report.  The “Carproof” can be very helpful to determine if there are any reasons why this vehicle should be valued lower and it should be reviewed for every car before placing a bid.  The best way to predict what a vehicle will sell for is to find similar vehicles for retail sale in the local market and deduct margin for the local dealer to retail them as the majority of vehicles sold in auction are by local retail dealers.

Most importantly, it is important to determine the value the vehicle is worth to you based on what you can resell the vehicle for after the other costs of importing it to your local region.  You will not necessarily pay your maximum bid.  The “Proxy Bid” is privately entered in the auction and is used to outbid the next highest bidder.  It is also important to note that the bid that is placed does not include the Manheim auction fee of ~$500.  It is always recommended that the amount entered is the highest you are willing to pay for the vehicle before the Manheim fee, Techlantic services and logistics costs.   Techlantic will of course guide you on what the total cost will be to deliver to your destination port prior to accepting the first proxy bids.

The best way to communicate a bid for a vehicle is to write an email to Techlantic with the following information:

    1. Which auction and time
    2. VIN
    3. Proxy bid price

If this is the first time you are bidding on a vehicle, it is important to clarify all the costs associated prior to placing this bid.  Techlantic will also require a deposit prior to placing a bid.  Final payment terms should also be discussed prior to placing this bid to ensure that there are no surprises.

Once the pricing is clear and Techlantic feels confident that you will follow through with the commitment, the proxy bid will be placed in the auction.

During the auction, Techlantic will get notifications of the results that can be shared with you to see the exact purchase price of the vehicle.  If the vehicle was purchased below your bid price the savings are passed on directly.  Techlantic will produce an invoice for the vehicle including the freight and will not charge the Canadian sales taxes.

Techlantic will coordinate with the auction to ensure the vehicle is paid for, picked up and shipped in a timely manner to ensure you get the vehicle as soon as possible to sell to your local customer.

Do not hesitate to ask us questions about this process and we look forward to working together to supply vehicles for export from North American car auctions.

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