Frequently Asked Questions
How is ACV different from other online wholesale marketplaces?
ACV auctions happen in real time and creates a sense of urgency and a call to action for bidders.
ACV starts auctions at aggressive prices that encourage bidding activity.
ACV auctions last 20 minutes, not days or weeks.
ACV facilitates the transaction quickly and efficiently.
How is ACV different from calling a wholesaler to get a value?
ACV mimics the call to a wholesaler, but instead of just one buyer getting a simple call, hundreds of buyers get to see photos, VIN information, and a condition report. Bigger audience equals better marketplace.
How is ACV different than Simulcast?
Simulcast auctions still require set times and the buyer to be glued in front of their computer. Also, the bidder using simulcast is disadvantaged by not being in the lane. Their bids are subject to the block clerk receiving them and they also commonly get run up against phantom bidders since they are not on the floor to see what is really going on. ACV auctions occur in real time and there are no phantom bids, shady auctioneers, or questionable dealer reps on the block artificially driving up the bid price.
How is ACV different from other pricing apps?
ACV allows buyers to bid on the actual vehicle that is up for valuation. Other pricing tools charge high monthly fees and just give data of historical auction transactions on similar vehicles. As we all know, there are variables such as auction location, vehicle condition, season, economy, fuel prices, weather, etc. that all play into the auction data that cannot be properly accounted for. Only ACV puts a real cashable value on the vehicle being put up for auction.
Wouldn’t it get bothersome to keep getting notifications of available vehicles throughout the day?
ACV allows for the buyer to set search criteria so they’ll only see vehicles that interest them. Receiving a notification is much less of a distraction to your life than taking multiple days out of your week to drive long distances and spend full days at physical auctions. ACV allows buyers to remain at their dealerships selling retail vehicles and have a steady supply of available wholesale vehicles being brought right to their phone in real time.
Wouldn’t buyers ignore the notifications if they never had any success buying on ACV?
This is no different than a buyer going to an auction and bidding on fifty vehicles in a day and buying five to ten by the end of the auction. Also, conventional auctions have a sale rate of only 65% on average, so buyers are used to not winning every vehicle they bid on. ACV should be least competitive with these industry standards, if not far better.
Are buyers really going to engage in online auctions?
When all vehicles run are online and as-Is, the disparity between red light and green light vehicles goes away. ACV goes a big step further by including a 14 day 500 mile powertrain warranty on most vehicles that get auctioned. Check out the warranty page for more details. Also, buyers will be able to see feedback ratings for the seller left by other buyers so they can have a higher level of confidence and transparency with who they are buying from.
Is 20 minutes enough time to establish a true market value for a vehicle?
ACV provides 20 minutes because that fits into the workflow of valuing a current trade-in. In that same 20 minutes, a used car manager could call one or two wholesalers and describe the vehicle to them, or look at market reports and guess on a value. ACV allows for hundreds of potential buyers to see the vehicle in that same timeframe, therefore providing a truer market value and dramatically increased exposure. Compared to physical auctions where each vehicle gets less than two minutes on the auction block, 20 minutes is substantially more time to do research, look at vehicle history reports, check your leads to see if you have a retail buyer lined up…etc. This all equals more bidders and more selling success.
How will ACV get more eyeballs on an auction than the real auction lane experience?
At physical auctions, there are sometimes 20 different lanes all going at once. Buyers need to work multiple lanes at once which is nearly impossible. Each auction lane and auctioneer can really only handle a crowd of 20 bidders, and that is on a highly desirable vehicle. Also, each auction house can only pull in so many buyers. It is common that there are multiple weekly auctions scheduled for the same day within a few hundred miles of each other. This means buyers are split between facilities and again, can’t be in two places at once. ACV allows for buyers to stay at their dealership selling retail vehicles, while at the same time monitoring available vehicles from as far as they are comfortable in all directions, North, South, East, or West.
What happens if a vehicle’s condition is misrepresented?
ACV has powertrain warranties included on most vehicles which will protect the buyer from major drive train related misrepresentations. Condition reports will be up to the seller to create, but feedback will be available to provide buyers with an idea of how reputable the seller is. ACV will not arbitrate based on vehicle condition but will encourage both buyer and seller to work together to resolve issues. If a seller develops a poor performing feedback rating due to misrepresenting his vehicles, his selling privileges will be revoked.
How does ACV protect against snipe bidding in the last few seconds of an auction?
ACV uses a unique auction process that mimics a real auction environment. While the auctions last 20 minutes by default, if a bid is placed in the last 30 seconds of an auction, the timer gets extended for an additional 60 seconds. This allows for counter bids to come in. Our auctions will only end once it is clearly established that a bidder is the high bidder and is no longer being contested. Just like a physical auction, the hammer won’t drop until the bidding stops.
How does a buyer make payment for a vehicle purchased through ACV?
Immediately after a successful auction, you will receive an email from ACV Auctions with your payment options. Payment is expected within the same day as the auction.
Our secure payment portal Zipmark makes it easy to pay directly from your business checking account. The first time through, you will have to create your account which takes just a few minutes. After that, it’s as simple as entering your username and password and paying the invoice.
We have also partnered with major floorplan providers so you can use your existing credit lines to make payment directly to ACV Auctions.
How does a seller receive payment for a vehicle sold through ACV?
At the end of a completed auction, we will email the seller a Bill of Sale and a FedEx tracking label to ship the title into ACV’s title processing department. Once we receive and process a complete and valid title, we will send the seller payment for that vehicle.
Can I use ACV as a closing tool with retail customers in my dealership?
ACV is a very powerful closing tool and we encourage selling dealers to use the ACV auction process as a way to build confidence and transparency into the trade-in process. Retail buyers have been conditioned to disbelieve the given trade-in value. Dealers know that they are usually providing a fair value, but have no good way to validate this to the customer. In fact, most franchise dealer groups are trying to maintain a zero profit/loss for their wholesale operation. With ACV, you can prove to your customer in a non-combative way what you are able to resell their trade-in for and remove the uncertainly, doubt, and confusion.
Who can sell on ACV Auctions?
Franchise dealers are the allowed sellers on ACV auctions at this point in time. Once independent dealers establish sufficient history on your platform, they may be granted selling privileges.
Who can buy on ACV Auctions?
Any business holding a valid dealer license can buy vehicles on ACV.
What vehicles will transact on ACV Auctions?
ACV will contain a mix of fresh new-car dealer trade-ins and aged inventory. These are many of the same vehicles that would otherwise go to a physical auction, get placed on a wholesale classified online site, or get sold directly to a wholesaler who would remarket it to one specific used car dealer. ACV allows all buyers to bid on all the vehicles all the time.