Any Idea Why Nearly Brand New Vehicles Going Thru Auction??

[Esquire]

I've seen a number of basically brand new vehicles of all makes being run through the auto auction.

I know some unscrupulous new car dealers sell their inventory to themselves to make quotas, however, running a very new vehicle through the auction
seems very peculiar. Especially a higher priced and in demand vehicle.

I presume there are issues with the vehicle--perhaps damages that haven't been posted on CarFax, etc....?

Curious on thoughts.

Pre-Owned 2024 Toyota Land Cruiser

Used 2024 Toyota Land Cruiser Sport Utility Black for sale - only $64,027. Visit Ira Toyota of Danvers in Danvers #MA serving Lynn, Salem and Essex #JTEABFAJXR5001547

www.toyotaofdanvers.com

 

[jnsplace]

*Clearing lot from 2024 models now that 2025s are arriving?
or
*dealer owner vehicle that was used for test drives all model year?

 

[Esquire]

*Clearing lot from 2024 models now that 2025s are arriving?
or
*dealer owner vehicle that was used for test drives all model year?

I certainly understand that when a nearly new vehicle is listed for sale from the new car dealer after it has been used as a demo vehicle. In fact the dealer typically CPO's it to make it more attractive.

What concerns me is when the vehicle has been run through the auto auction when it is nearly new and likely was used as a demo. A hot selling vehicle typically can be sold rather quickly without paying the fairly significant auction fees and the work associated with bringing it to the auction, selling, etc.

 

[MJE]

Are these vehicles maybe that have transport/shipping damage that then can’t be sold as new? I have no idea, but I typically associate auctions with repos, damaged vehicles, or just plain older odd ones.

 

[misnMy4runner]

Lemon-law. My 2024 palisades night edition with barely 6k miles on it falls into this category. Hyundai corporate approved a 100% buy-back after it sat for 169 days due to an engine issue recall. By the time it was all said and done, the palisade had a new engine and ran like new but I was tired of the hassle I’d been through and just wanted to be rid of it (and get my Land Cruiser). My understanding is the transfer agent took possession and it then went to auction before going back to a lot for sale. Absolutley pristine vehicle, added front window tint, chrome delete, and canvasback rear 2nd/3rd/cargo protector. Someone should get a great deal on a new engine used car…

 

[cruzer2024]

Lemon-law. My 2024 palisades night edition with barely 6k miles on it falls into this category. Hyundai corporate approved a 100% buy-back after it sat for 169 days due to an engine issue recall. By the time it was all said and done, the palisade had a new engine and ran like new but I was tired of the hassle I’d been through and just wanted to be rid of it (and get my Land Cruiser). My understanding is the transfer agent took possession and it then went to auction before going back to a lot for sale. Absolutley pristine vehicle, added front window tint, chrome delete, and canvasback rear 2nd/3rd/cargo protector. Someone should get a great deal on a new engine used car

 

[D-mac]

What concerns me is when the vehicle has been run through the auto auction when it is nearly new and likely was used as a demo. A hot selling vehicle typically can be sold rather quickly without paying the fairly significant auction fees and the work associated with bringing it to the auction, selling, etc.

The auction is a way to help make sure a higher demand vehicle can be sold for the highest possible price. If the dealer puts it on the lot, they have to put a high sticker price on it and then hope someone pays it, meanwhile everyone complains to salespeople and makes social media posts about what a greedy dealership they are. With an auction they sell it immediately and don't have to deal with all the tire kickers.