Auctions and tenders are not interchangeable

Many sellers treat auctions and tenders as interchangeable tools. They are not.

Each method drives different buyer behaviour and produces different outcomes depending on the situation.

Understanding when to use each is more important than choosing one and sticking with it.

How auctions actually work

Auctions create competition through visibility and momentum.

They work best when:

• Buyer demand is strong
• Vehicles are easy to assess
• Pricing expectations are realistic
• Time-to-sale matters

The strength of an auction is speed and price discovery.

The risk is that poor presentation or weak demand is exposed quickly.

How tenders really behave

Tenders are quieter and more controlled.

They work best when:

• Buyer groups are known
• Vehicles vary in condition
• Sellers want discretion
• Pricing needs protection

The downside is reduced competitive tension if buyers know they’re insulated.

Where sellers get it wrong

Common mistakes include:

• Sending mixed-quality stock to auction
• Using tenders to avoid pricing decisions
• Treating poor clearance as “market feedback”
• Not reviewing buyer participation

The method doesn’t fail. The setup does.

Choosing based on vehicle mix

High-volume, consistent stock tends to perform well at auction.

Mixed-condition or specialised vehicles often perform better in tenders or private channels.

The key is flexibility, not loyalty to a method.

Final thoughts

Auctions and tenders are tools. Not strategies.

Strong sellers understand when to apply pressure and when to control it. That’s where results improve.

‍