Dealer license
Buyer Tips

Do You Need an Auction License to Buy a Car?

By Mike Richards Updated: 05/07/2020 Posted: 08/06/2019

Auctions are a great place to buy a used car cheaper than at the dealership. But do you need an auction license to buy a car from them at a fair price? The answer is NO – at least if buyers access them online.

Car Auction are Getting Popular 

Buying cars at auctions is becoming more and more popular among private buyers. This is so for a number of reasons. The most important of these reasons is the price because you can get a good deal, but there are others. Auctions offer a greater variety of vehicles than your ordinary car dealership, and you don’t need to spend your time haggling for a better purchase price. When you can avoid paying a dealership’s markup on a car, why not go for it, right? 

Also, if the auction is online, you can do your bidding from the comfort and safety of your own home. Online auctions can be very convenient and a good idea. You can get all the information you need online and save yourself a trip. On top of that, online car auctions like Auto Auction Mall provide you with excellent customer support, can take care of the paperwork and title transfer, and even arrange transportation for your used car. 


No wonder then that the popularity of car auctions, and especially online car auctions, is on the rise. You get a huge variety of vehicles with the best deals. Add convenience and great customer support, and you’ve got an unbeatable combination. 

Different Types of Auction

With all these benefits, you would think everybody would be eager to get their next new car from an auction. However, many people still hesitate. One of the reasons for this is that many potential buyers still think they need a license to take part in a car auction. That is only partially true.

There are two main types of auction: public auctions and dealer auctions. As the name suggests, public auctions are open to all shoppers and do not require a license at all. These can be government auctions selling off old police or service cars, as well as impounded vehicles. These can also be auctions selling used or salvage cars. Anybody can take part, and the vehicles are usually at a very good deal, although some may be in less than ideal condition.

Online Auction Sign

Dealer auctions are different. These auctions are where car dealers get their stock. The quality of the vehicles is higher, including new or like-new vehicles. The prices are also usually higher than at public auctions, but they are still much cheaper than at the dealership. This is because, after buying the vehicles at the auction, dealers add their markup. 

Strictly speaking, you would need a license to take part in a dealer auction, namely a dealer license. This is a document that proves that you are a registered and authorised car dealer. Getting one is not easy or cheap, and it is definitely not worth getting one if you only want to buy yourself a new car. However, there are lawful ways around this restriction. And that’s where companies like Auto Auction Mall can help you. 

How Auto Auction Mall Can Help

If you’re trying to attend an in-person dealer auction, there are few ways to get around the restrictions. You could attend with your car dealer friend, for example, and they may be able to bid on your behalf, but that’s it. 

However, if you’re thinking of using online auctions, then a whole world of possibilities are open to you. Online dealer auctions will still require a dealer license, but there’s a loophole. Companies like Auto Auction Mall can use their own dealer license to give you access to those dealer auctions. 

Think of Auto Auction Mall as your car dealer friend. You can browse and get all the information you need about the hundreds of thousands of vehicles available at the website. This means that, for a very reasonable fee, private buyers can attend any online auction they would like, without the need for any sort of license thanks to Auto Auction Mall.

Further Reading

The only thing you can’t do yourself is bid. But you can set your budget and a maximum bid limit. Auto Auction Mall’s many auction experts will give you all the information you need and then bid on your behalf for the new vehicle of your choice, up to the limit you set. This means that no car is off-limits, as long as it is within your budget. You can even let Auto Auction Mall take care of the delivery of your car up to your driveway upon completion of your purchase.

In short, buying a car at auction, and especially at an online auction, is full of benefits and advantages. Don’t miss out on these advantages on account of a mistaken belief that you’d need a license to take part. Most auctions don’t require any licenses whatsoever. For those that do, there are ways around it that also bring their own advantages. So next time you need a car, don’t hesitate and give online car auctions a try.

Example Currently Live Car Auctions