How Do Auctions That Are Only For Car Dealer License Holders Work?

One of the many benefits of getting a car dealer license is that you will almost immediately have access to dealer only auctions. While these auctions can be fast paced and hard to follow for beginners, they are an excellent source of good deals on cars. Most people who haven’t been to one before, however, will not know how exactly the auctions work including what types of cars are being sold and how much they can save by buying one of them. Once you understand the auctions, they are still fast paced but not as complicated.

Some Crucial Facts About Dealer Only Auctions

In order to take full advantage of the auctions that your car dealer license gives you access to, you need to thoroughly understand the details of the auction including the following.

  • Some dealer only auctions will offer vehicles that have been seized for various reasons. Others will offer ones that dealers simply want to get rid of and yet other auctions will have a mix of vehicles.
  • Why would a dealer sell a car in an auction for less money than they could at a dealership? Although there are several different possible answers to this question, one of the most common explanations is that they have a car on their hands that doesn’t fit in with the others. A good example would be if a high end car dealer offers trade in deals and someone trades in a lower-end car. Even if the dealer could potentially make a bigger profit by keeping the lower-end car on their lot, they may choose not too simply because it will bring down their image. It may also be that they don’t expect anyone looking for a low-end car to show up at their dealership and feel this is the only way to sell the vehicle.
  • Most of the time when a car is sold at an auction that requires a car dealer license to enter they will be sold for an amount smaller than their value according to the blue books which gives an opportunity for profit. Sometimes a car may be able to be resold as it is and still give you a profit of between $500 and $3,000.
  • The people who buy cars at dealer only auctions must be sure of their purchases. That is because you cannot return a car that you buy there and they are all sold as is. Because of this it is important to take a close look at any vehicle you are considering purchasing.

About Dealers License LLC

The firm Dealers License LLC is based in Greenville, South Carolina. They work with clients who are looking to acquire a car dealer license, whether a retail or wholesale license. This license allows their clients to buy and sell used vehicles through the firm’s retail network as well as at dealer-only auctions. As an extra service to ensure their clients are successful, the company also offers 24/7 mentoring, marketing assistance and coaching. To learn more, visit https://www.dlcnetwork.com/.

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