Buying cars wholesale is very different from retail purchasing.
Buying Cars Wholesale
If you're looking to purchase a vehicle at a wholesale price, it will require a bit of research. Normally, wholesale cars are not sold directly to the public. Wholesale priced cars are usually sold to retail or wholesaler auto dealerships and lots, which then mark up the price to make their own profits.
Vehicles at these discounts are mostly obtained through private Dealer-Only wholesale auctions. In order to be able to participate in these auctions, you must have a dealership license. This fact eliminates most of the general public from taking advantage of these deals. So where can the average Joe find wholesale priced vehicles?
Auto Auction Car Brokers
Auto auction car brokers are businesses that provide a service for their customers by going to these auctions for them. For a fee, they will do the legwork and attempt to purchase the desired vehicle in the price range specified by the customer. Since it is an auction, this might not happen right away and you may have to wait a bit to get your car at the price you want. These auto brokers also keep some vehicles on their own lots that may fit your needs.Some auto auction car brokers you may consider buying cars wholesale from include:
Public Auto Auctions
Public auto auctions are available to everyone and do not require a dealership license or any other qualifications. Vehicles available at these auctions are usually repossessions, government vehicles, and others automobiles owned by private parties. The average savings on a typical purchase can be as high as 40 to 60 percent; there are a lot of potential bargains. Some people even purchase at public auctions and then resell the cars for a bit of profit.
However, like any big investment, you must purchase with a bit of caution. Some vehicles can be auctioned off at low prices, but there may be a reason for the huge discount. You should always give the vehicle(s) you are interested in bidding on a quick inspection. Keep these tips in mind before attempting to win that auction:
- Start the engine and listen for any knocks or unusual sounds. Check exhaust, air conditioning, heating and power options.
- With a foot on the brake, put the vehicle into drive and reverse to see if it lunges or makes any unusual movements.
- Check for any moisture in the vehicle (as a result of flooding) underneath the floor mats and rugs.
- Pull out the oil stick and check it for white bubbles (water present). If bubbles or overly thick oil residue is present, pass on the vehicle.
- Inspect the transmission fluid for any unusual smells or color. If it stinks and has a dark brown color, stay away.
- Look underneath the vehicle for any possible oil or other vehicle fluid leaks.
- Check exterior for rust, bubbling paint spots or paint that does not seem to match the rest of the vehicle. Any of these issues is a red flag to move on to something else, since the car may have frame, flooding or other types of damage.
If you considering buying cars wholesale, auto auction car brokers and public auctions are your best bet. Wholesale vehicles are normally sold to auto dealerships and require you to have a special license to participate in Dealer-Only auctions. With a bit of patience and persistence, however, your next vehicle can be purchased at a great discount by taking advantage of these options.
By Sheila Robinson
