How to Buy Wholesale Auto Direct

As many people know, dealerships are the intermediate agents between the customer and the wholesaler. Wholesale auctions offer you a great way to buy cars inexpensively. In fact, even the dealers buy cars at auctions and then increase the price tag.

• Search listings for public wholesale auctions. Public auctions do not have lower prices as dealer’s auctions would. But on the upside you do not need a dealer’s license to attend a public auction. These auctions are advertised in newspapers and the Internet prior to the actual auction to ensure advance publicity.


• Obtain a dealer’s license in case you choose to attend a dealer’s wholesale auction. There is a lot of paperwork but the prices are considerably low on dealer auctions. Local forms can be obtained from the local DMV.


• Check with a third-party source to find out the fair market value for a specific car and how it would fit in your budget. The services categorize cars by year, make, model and option and offer you condition-based pricing.


• Inspect meticulously the car which you choose to bid on. Since there is no permission to test drive cars at auctions, it is important to assess the condition of the car to determine its value. Obtain the VIN number if possible and search through CarFax. You can get a glimpse of the vehicle’s ownership through this.


• Register for bidding if the auction attendance requires you to do so. You may have to pay fees, and fill out some forms to obtain bidding number and paddle. Most of the low key auctions however, use the simple hand rising approach for bidding.