Car Auction App Development: Everything You Need to Know - Prismetric

Car Auction App Development: Everything You Need to Know

Everything about Car Auction App - A Detailed Guide for Entrepreneurs

A car is always a large purchase and something that demands a lot of research. Earlier people used to go to a car dealership or connect with individuals to buy old cars. The process was very cumbersome as the person would need to go and inspect the car before finalizing the deal physically.

The car’s paperwork is another cumbersome process that the car buyers and sellers have to go through during the process. Like many other things, the hassle of buying a car offline has prompted people to look for online options. The new and second-hand market for cars is huge and is expected to grow in the coming years.


The huge market size has lured many entrepreneurs to explore the online car buying space. Today, car dealership owners are looking to gain a better traction utilizing by employing mobile technology for engaging their prospects.

The dealers involved in the business of buying and selling used cars are looking for top mobile app development company to develop an efficient car auction application for their business. This article aims to guide all those entrepreneurs who want to build an online car auction app.

Benefits of having a car auction app

Benefits of a Car Auction App

The car auctions apps have changed the dynamics of the automobile industry due to its disruptive model. There are many advantages of a car auction app, we have mentioned the advantages according to the type of users.


For car dealers, it is a big hassle to manage car bookings physically. A car auctions app can help them manage the booking, let the customers know the car’s scheduled delivery, and help the dealers keep their customers updated with the paperwork.

With limited availability of test drive cars, it becomes difficult for car dealers when too many customers wait their turn for a test drive. Through a car auctions app, car buyers can schedule a test drive according to their convenience and avoid the hassle of waiting in the car dealership.

A car auctions app lets the dealers respond to the queries of their customers timely and efficiently. By responding to customers’ queries immediately, the dealers can raise the levels of customer engagement.

Car dealers need to improve their services to stay in competition consistently. A car auctions app allows the dealers to easily connect with the customers and receive their feedback and suggestions to improve their dealership.

Individual car buyers and sellers

It is a big hassle for car buyers to go from one car dealership to another to get their short-listed cars’ price. A car auctions app removes this hassle as it allows the car buyers to see the price of a car immediately on the car auctions app.

The customers can also compare the price of the same car in different dealerships. Apart from prices, a second hand car app can also help the customers know the other details of a car like the features, dimensions, available colors, finance options, mileage, estimated maintenance cost and the expected delivery date of the car.

A car auctions app can prove quite helpful for people who want to sell their old car. A car auctions app allows car owners to post pictures and other details of their car online and get the best deal for their car.

Many car auctions apps take up the hassle of paperwork like transferring the ownership of the car and thus prove to be a much better option than selling cars offline.

Request quote for app development team

Despite the rise of car-sharing apps like Uber and Lyft, the lure of a personal car remains there. Contrary to popular belief, the tech-savvy millennials do not hate cars, but they are averse to the idea of buying a car from car dealerships.

According to a New York Times article, millennials are fueling the next automobile boom by buying a car online. The hassle of researching while buying a car has prompted users to go online.

There are many car auctions apps available in the market today that help a person to buy used cars, we have discussed a few below.


Truecar is one of the most popular car auctions apps in the USA. Truecar provides potential car buyers with all the necessary details regarding buying a car.

Truecar is one of the best apps to buy used cars as well as new cars. Truecar offers great transparency to car buyers and the app has more than 13,000 car dealers associated with it. The following are the salient features of the app

  • Multiple car deals for the app’s users
  • Truecar offers guaranteed savings to its customers with respect to the price suggested by the manufacturer
  • The company has ensured that with iPhone X optimizations, the users have a great time using the app
  • Truecar helps the users compare prices of cars between dealers of the same area
  • Truecar allows the users to directly connect with the car dealers for any queries related to the purchase
  • One can coordinate a visit with the car dealer representatives for a test drive or to address any queries


Autotrader is another popular car auction mobile app in the market. Autotrader lets its users save a car they are interested in to have a detailed look at it later.

The customers of Autotrader also get a free detailed vehicle history report. Autotrader lets users choose from its huge collection of pre-owned, certified refurbished cars checked by the app and new cars.

Following are some interesting features of Autotrader:

  • Comprehensive vehicle information
  • The app has a separate section for classic cars
  • Has super-detailed filters based on attributes like car color, transmission type, model, engine and fuel consumption


Instamotor acts as a featured list of cars, something similar to Craigslist. Instamotor is a private car marketplace that connects the buyers and sellers and makes the entire buying and selling a car simple, transparent, and personalized.

The team at Instamotor does extensive checks of all the cars before listing them. They do so to ensure that there are no fraudulent transactions on the Instamotor platform. These features of Instamotor make it one of the best used car auctions app out there.

Key features of Instamotor:

  • Instamotor qualifies a buyer for car loan within a few minutes
  • Instamotor checks whether the manufacturer has recalled the car model in past
  • The users of Instamotor get a vehicle history report by Experian AutoCheck
  • Instamotor offers the users a visual breakdown of the car’s special features

How much will it cost to develop an online car auction app?

Cost to build a Car Auction App (1)

The cost to build a car auction app will range from $25000 to $120000 and even more than that based on the features selected. The reason to have such a wide range is because the cost depends on a lot of factors and the businesses need, just like any other mobile app. To add to that, the automotive industry is a very fast paced one and those that do not adapt to newer technologies will loose its way.

One of the most important steps to build a mobile app is conducting market research regarding the cost. For any business the cost of building an app is of utmost concern since the investment can make or break your business and getting a solution built can help the business gain much higher ROI.

We have listed below some of the most important factors affecting the car auction app development cost.

Hybrid or Native app

When one starts thinking about building a car auctions app or any app for that matter, the first question that comes to mind is whether to build a hybrid app or a native one.

A native app gives great performance as it is able to utilize the hardware capabilities of a Smartphone. The smooth performance of a native app comes at a price.

If a business is planning to cater to both iOS and Android users, they will have to build two separate native apps for both the platforms. A hybrid app is an app that can run on both iOS as well as Android platforms.

With the rise of cross platform app development frameworks and SDKs like React Native & Flutter, the developers now can build hybrid apps that have near-native performance.

A hybrid car auctions app development will cost much lesser than developing native apps for Android and iOS platforms. This is because the number of developers required to build a hybrid car auctions app will be much lesser and also there will be a significant amount of reduction in the development hours again reducing the overall development cost.

While for a native car auctions app, one would require to deploy two separate teams of developers that shoots up the developer hours and the app development cost.

Platform and devices

Factors such as the platform and the devices on which the app is intended to run also impact the used car auction app development cost.   A single platform app would cost significantly less than an app intended for multiple platforms.

Today the rise of wearable’s and smart speakers market has boosted the app development in these areas also. If a business needs its presence in the wearable and smart speaker’s space, then it has to invest in building separate apps for these devices.

The car auction mobile app development cost for iOS and Android also varies as both platforms’ app publishing fees differ. For instance, while the app publishing fee for Google Play Store is $25 for a lifetime, the Apple App Store charges $99 every year to publish iOS apps on App Store.

Another important cost to take into consideration is device generation. In case a business wants to build an app that should support older devices, then it takes more effort and time from the developers, translating into more app development costs. While allocating a budget for building mobile apps, one must take into account the mobile app maintenance  costs also.

Features and functionalities to be included in the app

The car auction app development cost depends a lot on the technology functionalities and features that the app owners wish to integrate into the app. Simple features that do not consume a lot of developer hours won’t be that costly.

Complex features like integrating AR or 3D views of the car can cost more to integrate. When we select to include an app feature, things like backend infrastructure, third-party service integration need to be taken care of as they have an impact on the overall cost of the app.

The types of end-users panel the used car buying app needs to integrate, also adds to the app development cost. The different type of end-users for a car auction app can be bifurcated based on the business:

  • Individual car buyers
  • Individual car sellers
  • Administrators
  • Car dealership Company

Location and structure of the app development team

The cost of car auction app development depends a lot on the type and location of the development team. Primarily, there are two types of development teams, a large organization with separate and specialized teams for each mobile app development task.

Large organizations typically charge more for developing an app. On the other hand, small development teams would charge less for developing the app but might lack the resources or the experience to finish the project satisfactorily.

The business must look at the pros and cons of each type of team before taking a decision.

The location of the mobile app development team also plays an important role in deciding the cost of the app. A development team located in developed regions like North America and Western Europe would charge more as compared to a development team located in a developed nation like India.

Normally it is observed that Indian app developers charge 5-6 times less than their western counterparts. This huge difference in costs has an overbearing effect on the final cost of the app.

Also read:The cost of developing a parking spot finder app.

Car Auction App Monetization Opportunities

make money with Car Auction App

No business can survive without a decent source of revenue. The same holds true for a car auctions app.  By implementing the right monetization strategy you can maximize your car auction app revenue.

We have discussed a few below.


In the commission based model, the app owners get a fixed percentage from each car sale. The car sale can happen between a dealership and a buyer or between two individuals. While with dealerships, it is easier for the app owners to keep track of the enquiries sent and customers converted, with individuals it is not so easy. The app owners can fix a convenience fee for individuals for using their app to solve this issue.


As cars have high aspirational value, the car auctions apps generally enjoy huge numbers in terms of users. These huge numbers of users attract advertisers who need to reach the maximum number of users.

The advertisements can act as a lucrative revenue source for the app owners as many automobile accessories vendors like tyre, battery, garage owners to name a few would like to place their advertisements on the platform.

ECommerce services

A car auction application can earn decent revenue by doubling up as an ECommerce platform that sells automobile accessories like car washing products, decorative items.

The online car auction app can start with selling automobile accessories of popular brands and then can start their own brands to increase profits.

Must-have basic features in a car auction app

There are two types of users for a car auctions app, namely the individual car buyers and sellers and the car dealerships apart from the admin. While designing the features of the car auctions app, all the users’ needs and requirements need to be taken care of.

We have discussed some basic features according to the type of users below.

features of car auction app

Individual car buyers and sellers

Sign up and Sign in

The users should be able to register on the platform with their mobile number and email ID.

In-app camera

This feature will help the users take pictures of cars that they want to sell. The users should also be able to upload a panorama (360 degree) view of the car so that prospective buyers get a better idea about the car. The app should also support short videos to boost user engagement.

EMI calculator

An in-app EMI calculator will help the users calculate an estimated EMI of the car based on the period of loan and the down payment amount.

Location based sorting

The location based sorting feature will help the car buyers find out the available cars near their location.

Customer care contact

The in-app customer care contact will help the users connect with the customer care team of the app whenever they face issues.

Submit reviews

The users should be able to share their reviews of the car on the platform. This feature would boost the engagement levels of the users with the app and also help other car buyers take proper decisions.



The dashboard will allow the admin to have an overall look of the app. The admin can take the necessary action as and when situations arise.

Manage payments

This section will allow the admin to manage all the payments.

Analytical tools

The analytical tools will help the admin check the application’s growth and users’ activities on the application.

Content management system

The CMS system will allow the admin to access and modify the content of the application as per their need.

Car dealerships

Sign up and sign in

Like the individual buyers, the car auctions application should allow the car dealerships to create a profile and sign in to the app. The app owners can think about keeping the profile of individuals and car dealerships separate.

Quotation form

The car dealerships should be able to get the details of the customers through a quotation form. This quotation form would help the car dealerships screen the users, provide customized offers to these users, and help them identify the best car for their needs.

Chat with buyers

It becomes difficult for car dealers to keep track of all the discussions that they had with the customers. An in-app chat with the prospective buyers would help the car dealers record and overview the discussion they had in the past.

Manage car listings

The car dealers should be able to manage the car listings as they would upload multiple cars.

Mange offers and transactions

The car auction app should allow car dealers to manage and customize their offers according to the customers.

Advanced Features of car auction app for better engagement and reach

Advanced features of car auction app

Now that we have discussed the essential features that one needs to include in a car auction app, we shall look at some advanced features of a car auctions app. These advanced features would help the app attract and retain users towards the app.

AR 360 degree view from the app

This can prove to be an attractive and distinguishing feature of the car auctions app. While buying a car, the car owners would like to have a detailed view of the car.

An AR 360 degree view would help the prospective buyers experience the car online. The AR 360 degree view feature would help the car buyers make up their minds purchasing the car.

Push notifications

The push notifications enhance user engagement and nudge the buyers to keep on visiting the app. The used car app can send relevant push notifications to users after analyzing their search history.

 Used car check-up

While buying a second-hand car a detailed check-up of the vehicle  must be done. This check-up includes checking the condition of the car’s various parts like tyres, exterior body, engine and so on. The second hand car auctions app can charge a premium and provide the service to car buyers.

Data analytics

The car auctions app should have advanced analytics features that analyze the customer behavior on the app. Advanced data analytics will help the app owners offer a customized experience to their users and maintain a great relationship with the app users.

Online comparison of cars

Before purchasing a car, buyers like to do a comparison between various cars. The car auctions app should provide a tool that allows the users to do an online comparison of cars on the basis of various factors like mileage, dimensions, price, safety features and so on.

Integration of Chatbot

Personal assistance to the users will help the car auctions app differentiate itself from its competitors. An AI (artificial intelligence) enabled Chatbot will help the car auctions app provide personal assistance to its users.

The Chatbot will not only help the car buyers make the right choice, it will also solve their basic queries immediately. If the Chatbot cannot solve the customer’s query, it will redirect the customer to a customer care executive. If the Chatbot finds that a particular user is a hot prospect, it will notify the customer care team of the app who will connect with the user later. This way a Chatbot can help the car auctions app realize more sales.

Car valuation tool

While buying second-hand cars, the car’s fair value is often a bone of contention between the buyers and sellers. The used car auctions app can provide a car valuation tool that will provide a fair value of the car to the buyers. This tool will help prospective buyers make an informed decision.

GPS tracking

Although buyers are often interested in a certain car, the distance they need to travel to reach that car acts as a deterrent. A GPS tracking feature will help the buyers get in touch with nearby sellers. This way the buyers and sellers can avoid wasting time and effort in scrutinizing cars that are not in their vicinity.

Document scan & upload

Significant paperwork is involved in any car deal and it becomes a hassle for both car buyers and sellers to keep track of the paperwork. The second hand car app can provide an in-app document scanning feature that would prove to be useful for both individuals as well as car dealerships. Using this feature, the involved parties can send and receive the paperwork as per their convenience.

Lead management system

This feature would help the car dealers manage the leads through the app to buy used cars. The system would help the dealers identify the hot leads which they can convert into sales.

On Demand Car Wash App Development

Technology stack required to build a mobile app for selling used cars

The selection of a proper technology stack plays an important role in deciding the fate of the online car auctions app. To ensure that the app is built using the best technology stack, it is essential to hire dedicated app developers from a renowned app development service provider.


MySQL, Oracle, MongoDB and PostgreSQL.

Programming Languages

Java, Python, C++, C#, Scala, JavaScript, Kotlin, Swift and PHP.

Cloud solutions 

Amazon S3, Microsoft Azure and Google Cloud.

DevOps tools Jenkins, selenium, Rollbar, GitHub, and Bitbucket.

The technology stack listed here are to provide an insight about the requirement, but to know the complete list of technology and other resources required based on your requirements it is always better to ask the professional Automotive app development company you partner with.

Team required to build a second-hand car auction app

Developing a car auctions app is a long and complex process. It requires a professional mobile app development team hundreds of hours of research, planning, programming and testing to finish the job. We have listed the team members required to complete a car auction mobile app development project efficiently.

  • Project Manager
  • Back-end developers
  • Team leaders
  • UI/UX designers
  • iOS/Android developers
  • QA Engineers

Request quote for app development team

 Car auction app – we customize it for you

Building a user-friendly and informative car auctions app can prove to be a challenging task. The app owners need to keep the interests of the users in mind before developing the app. Proper market research and execution of the idea is important to ensure the success of the car auctions app. One can consider hiring top car auctions app developers to take the idea to fruition.

We at Prismetric have made a name for ourselves as one of the industry’s best mobile app development companies today. We have a skilled and experienced team that helps us execute all kinds of projects within tight deadlines. We would love to be part of a success story like yours. Please contact us to discuss your app idea.

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