Today’s Business
Berco Blog:
4/10/2026
Our Refusal to Overpay at the Auction
Tax season always brings movement to the used car market. Refund checks start coming in, buyers become more active, and dealers know demand usually picks up. That same energy shows up at the auction. More bidders chasing the same vehicles means prices can climb quickly, especially when good inventory is already hard to find.
The current market reflects that pressure. Cox Automotive reported that the Manheim Used Vehicle Value Index rose 6.2% year over year in March 2026, reaching its highest level since summer 2023. Used vehicle supply has also tightened, with retail lots falling to around a 40-day supply, the lowest level of the year. That combination of higher demand and tighter supply makes the auction lanes more competitive. (Cox Automotive Inc.)
This is where discipline matters. We watch vehicles bring more than they should, and we see certain dealers, including some buy-here-pay-here operations, pay high numbers at the auction only to turn around and price those vehicles even higher. That may work for certain business models, but it does not change the true value of the car.
Our approach is to stay patient. Before bidding, we look at the vehicle’s condition, mileage, history, needed repairs, transportation costs, market value, and where it would realistically need to be priced after it is ready for sale. If the numbers do not make sense, we stop bidding.
In a market like this, winning every car is not the goal. Buying the right car at the right price is. Sometimes the smartest decision happens before the vehicle ever reaches the lot: standing firm, letting someone else overpay, and waiting for the right one.
