DAP is the automotive industry's most progressive and innovative pre-owned vehicle purchasing model, which allows members of the general public to acquire quality preowned vehicles within the same purchasing structure and financial parameters as a licensed automobile dealer.
Vehicles are procured by the dealer, who then operates as a middleman and liaison for the consumer. All of the usual extra processing and cost adding measures have been removed from the process, allowing the public access to the vehicle at a much more streamlined price point. It is not unusual for a DAP dealer to have the ability to market a vehicle to the public anywhere from $2000 to $3000 lower than a neighboring dealer with the exact same vehicle who does not operate under the DAP format. Any dealer using the DAP format will be able to offer a preowned vehicle to the public at or very close to regional auction pricing. This allows the purchaser much more flexibility when adding necessary ancillary products such as an extended service agreement, or guaranteed asset protection, otherwise known as GAP insurance.
In addition, the DAP format also exposes the consumer to a much lower LTV, or loan-to-value ratios, which have the ability to affect the allotted interest rate offered from the lender. These components can result in a much lower interest rate for the purchaser, again decreasing the total overall cost of the vehicle purchasing experience.
In short, DAP, or the Direct Auction Pricing business model is a phenomenal way for the buying public to purchase vehicles at dealer pricing and avoid all of the usual hard-core negotiation and pressure tactics that normally accompany purchasing a used vehicle.