Dealers Snap Up Used Vehicles Strong Demand Fuels Brisk Sales At Weekly Auction Where Dealers Go To Replenish Their Stock

As vehicles approach the auction house, a swarm of dealers descends, determined to scrutinize every inch in the shortest time possible.

With cellular phones pressed to their ears, the dealers circle the cars, trucks and minivans, inspecting the bodies and listening to the motors.

“You’re not going to get everything you want,” said Bart DePratu, who sells Fords, VWs and Audis in Whitefish, Mont. “They’ve got 900 cars here. It’s hard to look at them all.”

It could get tougher. As consumers continue to make used car sales a booming industry, dealers rush to find the best buys.

Every week, between 500 and 600 used cars are sold at the Dealers Auto Auction on Geiger Boulevard, west of Spokane. The auction, in business since November 1992, has outgrown its property.

In June, the auction will open a new building on Hayford Road, where they’ll have room to run five lanes at once, instead of three. In April, the company expands into the Tri-Cities, where they’ll “run three lanes” every Wednesday, said Bob McConkey, president of the auto auction.

At the first auction, four employees sold 17 cars. Thursday, 90 employees helped sell about 550 cars. Auction sales now match new car sales nationwide, with both at about 16 million cars sold per year, McConkey said.

DePratu, like many of the dealers present Thursday, was hoping to buy three or four cars. When dealers step inside to bid, the overlapping voices of three auctioneers roll along like the staccato of a snare drum. From farther away, the steady din - interrupted only by assistants yelling ‘Hup!’ to indicate bids - sounds like dozens of jack hammers pounding at once.

Used car sales allow dealers higher profit margins than new cars, which have less price flexibility. Manufacturers set the prices dealers must pay for new cars; at the auction they decide how much to bid for used cars. Also, information about how much dealers pay for new cars is widely available to consumers, according to McConkey.

Those attending the auction are as diverse as the cars they’re buying - which range from a shiny red 1995 Chevrolet Blazer to an old beat up Dodge Ram. One dealer is from Colfax and sells farm vehicles - tractors and combines - but also a few pickups each year. Another, from Coeur d’Alene, is a boat dealer but also sells some cars and trucks.

But most of the dealers in the center ring are seasoned professionals. They’ll up a bid with a nod of the head, a raise of an eyebrow or the slightest of hand motions. Assistants dance among them, staring them in the face, and looking for anything that indicates a raised bid.

Spectators freeze until the sale ends.

It’s almost impossible to tell through the din and constant motion who bought the car or what the person paid.

The five huge garage doors through which the cars enter and exit are not adequate to clear the air. A car is sold every 45 seconds from one of three auction lanes, and motors are constantly being revved, filling the room with exhaust. Add a steady supply of cigarette and cigar smoke, and it’s tough to breathe.

Most of the dealers are men, dressed in jeans, sneakers and button-up shirts. They’ve come from as far away as California, Montana and British Columbia.

Cars are sold on consignment from dealers nationwide - as far away as New York. A dealer doesn’t have to be present to sell a car. But many dealers come from Canada to sell their vehicles because the American dollar is stronger than its Canadian counterpart.

George McConahy, a buyer for George Gee and Thrifty Car Rental, has been in the business for 41 years. Before hitting Spokane on Thursday, he bought four cars in two days at auctions in Portland and Seattle. In the coming weeks, he’s off to Phoenix and Las Vegas.

Spring’s the hottest time for car sales, McConahy said. “The buying public is out, so the dealers are, too.”

, DataTimes ILLUSTRATION: Photo