A used car dealership is a used car dealership is a used car dealership. Auction Direct USA has a clever slogan and catchline, but when you understand what's really going on in the used car industry, there's really not much behind the smoke and mirrors.
Dealer auctions are how used cars move from dealership to dealership. When you trade in a car at a dealer, there's a good chance that it'll go to one of the large car auctions and end up at a small used car lot somewhere else. New car dealerships typically don't want to keep a lot of used cars around (unless they're low-mileage and in excellent condition), and they're more interested in selling you a profit-heavy new car. And when a used car dealership tells you that they'll "look" for a particular car for you, what they're actually doing is searching the well-organized network of dealer auctions. This network is a well-oiled machine, and Auction Direct USA has figured out some clever marketing to capitalize on it.
I test drive a _lot_ of cars (mostly because I like cars and I have a penchant for flipping them regularly), and I'm not above stopping at Auction Direct if there's something I'm curious about. But every time I do, I have to listen to the song and dance about how wonderful and different they are. What the salespeople seem to forget is that the "Auction Direct Reserve Price" is nothing more than an arbitrary price that they determine the car is worth. It's not the price that they paid for the car at auction. In other words, I could take your grandmother's beat-up '84 Chrysler K-Car and put a "reserve" price of $10,000 on it -- and in the case of Auction Direct USA, it would have the veneer of credibility.
I'm also weary of dealerships like Auction Direct that bring cars from northern states down to the south. In addition to properly sweetened iced tea, southerners tend to enjoy rust-free cars. Buying a car that spent its first four years in New York State is no bargain at all -- and even if you have to pay a touch more for a car that lived all of its life in North Carolina, it's probably a better buy in the end.
Now, I'm a huge advocate of buying used cars. There's simply too much of a depreciation hit with new cars, and buying new is really only worthwhile if you're the kind of person that wrings every last mile out of a car (and, preferably, someone who takes good enough care of a car to make it go "the mile").
So, my advice to anyone in the used car market is to do your research. Kelly Blue Book and Edmunds.com are great places to start. Craigslist, if for no other reason than to see what local private sale prices are like. Research all of the "fees" associated with the purchase price, and negotiate the crap out of them (since the only fees you're legally obligated to pay are the 3% highway use tax and the tag and title fees; everything else is dealer profit). And if you're paying cash, don't tell the dealer until you've negotiated the purchase price, since many dealers know they'll get a kickback from the financing company if they can sell you the financing (yes, that's a product with a profit margin for them too). Auction Direct has this all lined up a little too well for my liking, and i can see why they're profitable.
Auction Direct has never done anything egregious to me, but they've also not proven that they're any better than the next dealership -- and with the abundance of cars from northern climates on the lot, I find I have to look really carefully before I get excited. Not a horrible experience, but a definite "meh". read more