One of the best ways to buy a vehicle today is through a wholesale car auction. It’s possible to find an array of different vehicles at low prices.
However, there is one major drawback for buying at a wholesale auto auction for the average buyer. These auctions are for dealers only, and if you don’t have your dealer’s license, you won’t be able to buy from the auction, in most cases. Fortunately, there is a method that you can use as a workaround to this.
How to Get Into the Auctions?
A number of third party dealers can provide you access to these auctions. When you work with these companies, you will be able to see what vehicles are up for sale in the wholesale car auction. This provides you with many more great opportunities to find the vehicle that you want and that simply isn’t available through the regular public auctions.
These companies work relatively simply. You will be able to look through the online inventory that’s available in the auctions and then choose the vehicles that interest you. The company will take care of all of the bidding for you, since they have their dealer license. You will be able to determine the maximum amount that you want to bid on the vehicle, which will ensure that you are never in danger of going over your budget.
Many of these dealers will also have an option for shipping. Since you are buying through a wholesale car auction, it means that you may be buying vehicles that are several states away. You might even be in another country. Having a company that can help you with the shipping process will make your life much easier.
Which Auctions Are Right for You?
Instead of looking at the wholesale car auctions and trying to find a dealer that can help after the fact, your best course of action is to find the dealer first. Look for a company that has a good reputation and that has access to top quality auctions.
You do not have to become a member of most of these sites to look at the vehicles that are in the wholesale auto auctions they are attending. Look at the vehicles that are available to help you determine whether the company might be right for you.
When you are looking at those vehicles, see how much information is offered about them. If the site doesn’t provide any information other than the make, model, and some photos, it could be a warning sign. You want to get as much info as possible about the vehicles you are buying, including the VIN. Look at the history of the vehicles to determine why they are on the auction block in the first place.
Something that you will notice with many wholesale auto auctions, as well as public auctions, is that the vehicle often has a salvage title. This type of title means that the owner or insurance company has decided that it would be more cost effective for them to replace the vehicle rather than repair it.
However, this does not mean that it’s a bad option to buy. In some cases, the insurance companies do this because it’s easier to write off the vehicle. The cars and trucks at the wholesale auto auctions with salvage titles could still be well worth your time and money. Check to see what type of damage they have and try to get an estimate on what it will cost to repair the vehicle and get it on the road again.
Also, you should make sure you consider the fees that the company charges. They are there to help you, but they can’t do this without charging fees. Check to see what types of fees are associated with buying, and make sure you factor that into your budget.
Why Bid Against Dealers?
When you are going through wholesale car auctions, the majority of your competition will be from other dealers. There will certainly be some other bidders like yourself going through a dealer, but for the most part, you’ll be competing with dealers.
This is actually a very good thing. They are not buying vehicles for their personal use, so they have no attachment to getting a certain vehicle in most cases. They are trying to get the vehicles as cheap as possible for their dealerships so they can resell them and make a profit.
This generally means they are not going to be pushing the bids too high. If you bid higher than them, many times they will simply move on to another vehicle. This can make it easier for you to find a vehicle that you really want, and you will not have to spend a fortune doing it.
There’s a relatively easy method to get into a wholesale car auction. Be sure you are working with a company that has a great reputation in the field, though, as it will make the bidding and buying process much more easier.