The advantage to dealer for auctioning the care is that, if the price meets his reserve, he gets cash for a hunk of metal that has been taking up space on his lot. He can put that money back into something that will sell.
If the car gets sold, it will most likely be bought by someone who has a better market, or prospects for that type of car.
The only way to verify if they are playing you is do drive down there and see if it's gone.