If you can find wholesale cars at wholesale prices, it can be a fantastic way to save a substantial amount of money on your next vehicle purchase. The wholesale price is the amount of money that a dealer will pay to the manufacturer for the vehicle. You can research cars wholesale value (how much it can cost) on KBB website. They will then increase the price on the vehicle when they sell it so they can make a profit.
If you, as an individual buyer can find these vehicles at wholesale prices, or close to those prices, it’s worth the time and research it takes to find them. Here are the steps you should take when you are searching for wholesale cars.
Learn About the Vehicle and the Value
Chances are you have a couple of vehicles in mind when you are shopping for wholesale cars. It’s important that you learn as much about the vehicles that interest you as possible. You need to know the exact vehicle that you want. This includes more than just the make and model. Learn about the wheels, audio, engine, and options in the vehicle that you want, as all of these will factor into the value of the car.
When you have the exact information you need, it will become easier to find the value of the wholesale cars. Instead of just choosing one car and setting your heart on it, you should have several different fully researched options in mind.
It’s easy to find the value of the wholesale cars. You can look at online guides through sites such as Edmunds and Kelley Blue Book if you want to learn the retail and wholesale price of the vehicle you want. You should always check these resources before you buy a vehicle whether you are looking for wholesale cars or not.
What Can You Spend
It is also important that you know your budget for the vehicle before you begin shopping. In addition to the price of the vehicle, you will also need to think about all of the other fees that go into the price, such as the taxes and registration. Set a budget that you are comfortable with and always try to negotiate to get the car for under your budget.
No matter what the seller tells you, don’t go above your budget. Stick to your guns. Look at the vehicles through another dealer if you have to. If you can’t find a dealer that will meet your budget for the first vehicle on the list, move on to the next vehicle.
Negotiations and the Dealer Holdback
If you want to buy a car from a dealer, negotiations are in order so you can get to the lowest possible price and as near to the wholesale price as possible. When you are at a dealership, you can ask them about the invoice price for the vehicles (which you should already know if you’ve done your research), which is the same as the wholesale price. Make sure they are being honest about the price, and then start your negotiations. Start as low as possible and make them meet you as close to the price as possible.
Remember, dealers have a “dealer holdback” when it comes to selling new cars. This means they will always have 3% of the vehicle’s sticker price as profit, even if they were to sell at wholesale prices. Technically, they are buying the vehicles for less than the wholesale price. When you are calculating how much you want to pay for a vehicle, make sure you consider this 3% holdback. Negotiate so that the dealer still makes a profit but you are close to the wholesale car’s price.
Consider a Wholesale Car Auction
Instead of going through a dealer and needing to negotiate, you also have the option of buying at an auction for wholesale cars. You can find a number of different types of cars at the auctions. They often have brand new vehicles, near new vehicles, and trade-in cars that are in good condition.
Of course, there’s a catch. Unless you have a dealer’s license, you will not be able to attend these auctions and bid. However, there’s a way around this, and it’s quite simple. In certain auctions, you can work with a third party proxy that has a dealer’s license. You can find the vehicles that you want and have them take care of the bidding for you.
When you go through an auction, you have the chance of finding some great vehicles at cheap prices. You do need to remember that it’s an auction, though, and others that want the vehicle will be bidding against you.
Keep an eye on the price and make sure that it conforms to your budget and the actual wholesale value of the car. If it goes too high, it doesn’t really make sense to buy through the auction. Most of the time, you will find that it’s relatively easy to get vehicles for good prices though, as dealers will generally back out of bidding first – they are trying to get the prices as low as possible so they can refill and rotate their inventory.
Keep in mind that you have other auction options as well. You might want to check out some of the public auctions in your area, as well as some government auctions. They don’t always have new or newer vehicles, and you may not be able to get wholesale prices (although you can sometimes find prices even lower), but they are worth considering.
When you are buying through these auctions, make sure you learn as much about the vehicle as possible, including any possible damage it might have if it is not a new car.
Though it takes time and some effort, it is a good idea to look for wholesale cars when you are buying a new vehicle. You may be able to save a lot of money. Whether you are going through an auction or a dealer, just remember to stick to that budget and be willing to walk away if you can’t get the deal that you want.