How can I purchase a car from an auction (the kind that dealers go to)? Do I need a dealer license, etc.?
Or is there a way I can also buy real cheap cars from these auctions? Also, are there any warranties or is it strictly: look and inspect the car now or forever hold your peace?
You have to go to the auction with a licensed dealer or representative.
yes which u can purchase online buy typing buy a dealer license on google
You need a dealer’s license to attend these “Dealer Only” auctions. This is usually not worth your while just to buy one car. You must pay to establish a business and get a tax code. You must also pay for a dealer’s license. This cost would exceed any amount you would save buy buying a car from auction. Dealers make out buy buying several vehicles and passing off this cost when they sell the vehicle.
Also, many Dealer Only auctions are starting to limit how many people they can bring with them. They are getting smart to too many people buying from these auctions that shouldn’t be there.
Also, these will not have any warranty. The only exception is if there is some remaining factory warranty.
Dealer auctions are closed to the public. Dealers assume all liability for repairs to the cars.
Some well established dealers are set up on a floor plan where they set up a line of credit with the auction house. They use that credit to “buy” cars to stock the inventory of their lot. They pay the auction house when the car sells. The auction house holds the title until they get paid. The dealers have to return the cars and pay a fee to the auction if the car doesn’t sell in 30 days.
Sure, its easy.
1. Buy garage liability insurance $2000-3000 per year)
2. Get a wholesalers license & bond ($350-1500 depending on location)
3. Register at dealer auctions.
4. Cars are sold “as is”, or with a “ride & drive”.
As is are much cheaper. “ride & drive” means the motor & transmission are good and if you drive it within 1 hour and disagree, you can arbitrate. The auction will decide. If your claim was bogus, you pay a fee and will be barred from the auction. If the car indeed had a bad motor or transmission, you get out of the deal and the seller pays fees.
Once 1 hour passes, you are an owner.
If you want to be a retail dealer, you need a car lot. Otherwise you can only sell to dealers & at auctions.
Despite popular opinion, cars at dealer auctions are not “real cheap”.
Many dealers regularly buy cars out of the newspaper and sell them at dealer auctions.
Ive sold a car for $3000 at an auction that I was HOPING to get $2100 for because some idiot started the bidding at $3000 and nobody else bid.
I bought a car out of the newspaper for $1400, sold it on the street for $2900.
A year and 20,000 miles later the same truck brings $3200 plus buyers fee at a dealer only auction.
A dealers license doesnt cure a lack of experience.
You can’t just “buy a dealer’s license online” lol if you read above, there is WAAAAY more too it. Yes you need to be a dealer to buy from these auctions. That is why they make it so dealers whom do this for a living are the ones who go to the auctions. If it was easy to get a dealer license and anyone could go to these auctions then us car dealers would be out of business. Just buy a car from a dealer you trust.
there is dealer auctions were you do need a dealers license to go to. and there is also public auctions, which i believe is the left overs from the dealers auctions that anyone can go to. not sure though. http://certified-auctions.com/ has local searches by zip code of where the auctions are going to be held.
You do need a dealers license or take someone along who has one of these to help you make that purchase.