...I’m at 29900 Auction Way in Hayward, California, in the midst of a massive car auction run by vehicle wholesaler Manheim. The sale I just watched is one of a dozen going simultaneously, each 20 yards or so from the next. In the space of one morning, 2,300 cars change hands. (If you’re sticking around for the full three hours, take the earplugs over the headache.) This isn’t a rarity, it’s a weekly event. Americans buy and sell 40 million used cars a year, and this auction is one of many pipelines, usually unseen, feeding that demand...
After three hours, they’ve picked up 20 cars, more than they needed. Once the paperwork’s filed, Manheim does a closer inspection before releasing each car to DriveTime. Then the used car company runs each vehicle through a 14-day inspection and repair process, checking that all the vitals work with test drives. If the car’s not up to snuff—which happens about 8 percent of the time—it’s dropped. Otherwise, they make any necessary repairs and cosmetic touchups and send it to one of the company’s 128 dealerships. Then it’s off the customer, who’ll most likely have no idea of the journey their “new” car has taken.