A wholesale auction is generally only open to those with dealer’s licenses, as dealers use these auctions to buy stock for their inventory. For the most part, the auctions work similarly to public auctions in practice, but as a private buyer, you will notice that there are quite a few differences, namely, you can’t attend them.
However, that does not mean you are unable to buy from the auctions. You just need to work with a dealer or auctioneer that is able to act on your behalf for the auction.
Finding a Dealer and Getting the Car
The vehicles available at wholesale auctions are often new, recent trade-ins, or nearly new vehicles that might only be a couple of years old. This is great for buyers who want to save and who want to get the vehicles as close to the wholesale price as possible.
If you want to become a part of the wholesale auction, you need to find a dealer to act as the broker for the sale. Many dealers offer this option, and they can help to make the overall process of the auction and other service much easier on you.
When choosing a dealer, you need to make sure you are working with a company that has a good reputation and that can provide you with all of the information you need about the vehicle before you start bidding.
One of the benefits of going through a wholesale auction is the fact that the cars tend to be in very good shape. You do not have to worry about getting repairs for the vehicle before you can get them on the road. Most are ready to register right away, and you will find that getting insurance is quite easy as well.
Still, you should do plenty of research on the vehicles that interest you. Know the going price for the vehicles on the market, as well as the wholesale price. If you really want to get a good deal, try to keep your buying price as close to the wholesale price as possible.
Using a company to bid on your behalf will protect you from the risk of overbidding. You can set a maximum bid and trust that the company will stick to it.
What To Do After Buying
After you win your bid, the car is yours. However, you still need to think about how you can ship it from the auction location to your door. Many of the brokers and auction houses will have shipping options available to help you.
However, you do not necessarily have to use their shipping company. It is in your best interest to check out some of the other shipping options to see whether it is cheaper. Keep in mind that cheaper doesn’t always mean better, though. Check their reputation as well.
Going through a wholesale auction tends to be much easier for buyers, since you can have the brokers take care of most of the work for you. With some research and smart bidding, it is possible to get the vehicle that you really want.