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How to Buy Brand New Cars at Auction Online?

By Mike Richards Updated: 05/22/2019 Posted: 10/20/2015

If you dream of getting great deals on new cars without all of the haggling and hassle of going to dealerships, comparing prices, and negotiating for the best value, then you might actually want to consider getting a dealer’s license yourself and buying brand new cars at online auctions. To understand why this might be the right route for you, let’s first discuss why online auto auctions are the best platforms for getting great prices on new cars. Then we’ll get into why you might want to become a dealer and how you can buy brand new cars at auctions online even if you don’t decide to get your dealer’s license.

Why Online Car Auctions Are a Winner

Did you know that most car dealerships buy their cars through auto auctions? Whether they buy from physical auctions or auctions online, they are able to make profits on the cars they sell because they buy them at much lower prices at auction.

Imagine the deals you could get if you had access to an auction house with incredibly low starting bids. Now think of the deals you could get if you chose your cars right and only bid on vehicles that weren’t getting much attention from other dealers bidding on new cars. The possibilities are endless, and online auctions make the whole process even easier and more lucrative.

With online vehicle auctions, you don’t have to go to a physical location, so you don’t have to account for time driving in traffic. You also don’t have to miss out on attractive auctions that are not within easy driving distance of you the day of the auction. Furthermore, you can research everything you need to know about the makes and models that you’re interested in from your computer while you keep an eye on the auction. And, because you won’t be standing there bidding against someone else in person, you won’t feel the pressure that comes with the auction environment.

Anyone can buy a salvage car at auction, but only dealers can buy new and used auction cars. That means, if you want to have access to these auctions for cars that are new and ready to drive immediately, you will need to get a dealer’s license.

How to Get a Dealer’s License

Now, when you look into becoming a licensed dealer, you should know that there are two kinds of licenses available to sell cars, but only one of them will give you access to auto auctions. A salesperson’s license will not help you get the deals you want on auction vehicles, but a dealership license will.

Of course, a dealership license does require you to actually take the steps to open and run a dealership. You cannot simply obtain the license without a business address, tax ID for your dealership, business license, and other documentation.

If you are interested in buying new cars at auction because you want to sell them at your own dealership, this is absolutely the way to go. You should know, however, that every state has slightly different rules and requirements to obtain a dealership license. You can find all of them listed by state at the DMV’s Dealers & Auto Industry site.

Buying Cars at Auction Without a Dealer’s License

If you are only in the market to buy one or two cars, though, going through that whole process really isn’t going to be worth it. That does not mean, however, that you have to just settle for dealership prices and hassles. You can still buy cars at online auto auctions, but your choices are more limited.

If you want to personally buy a car through an online auto auction, you’ll need to limit yourself to the salvage vehicle category. You can buy these at heavy discounts, but they do need to be completely repaired or rebuilt, and they will need to be re-titled before you can register and drive them. ((((I DONT THINK THIS IS TRUE????))))

Another option is to find someone who has a dealer’s license to bid on online auction cars for you. In most cases, your dealer will find cars at prices that you specify, and then they’ll charge you a finder’s or dealer’s fee on top of the cost of the car itself. This is usually still a much better deal than buying a car from a car lot, though it is not quite as cost effective as bidding on a car yourself.

Online auto auctions give you a lot of options for both new and used cars, and you can look up the Carfax (((LINK THIS))) on any used or salvage car you’re interested in, too. This means that you may be able to find a recent model year, low-mileage used car in very good condition at an online auction. Of course, you may also find the new car you’ve been dreaming of at a price you can’t believe, even when you factor in your dealer’s fee. Whether you’re looking for a new or used car, online auto auctions are the way to go if you want to get the very best price on the highest quality vehicle.

Find information on Rebuilt Title Laws for Each US State. See our Vehicle Auctions, Car Auctions and Education Centre.

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