Tips For Auto Auctions As A New Licensed Dealer

Posted on January 5, 2012 by Aaron

Becoming a wholesale dealer of used cars can bring people a higher income than they are currently earning at their jobs. It’s for this reason that people pursue obtaining a dealer license. With an auto license, they can purchase used cars at a dealer auction for the most advantageous prices. But those who are new to the business and inexperienced may want to learn a little about how to be successful when purchasing vehicles at an auto auction.

One good tip to remember is that a winning bid price is not going to be the same as the price that will eventually be paid. After the auto auction is over, a buyer’s premium is added to the purchase price. The buyer’s premium is the amount of money the auction house charges everyone that purchases a vehicle through them. It’s important to remember, because this buyer’s premium just might take the price of the vehicle above what is printed in the Kelley Blue Book, and this would defeat the purpose of purchasing used vehicles from an auto auction.

The vehicles that are being sold at a dealer auction will, most likely, be auctioned off on an “as is” basis. This means that the used vehicles could have something seriously wrong with them and break down the next day. The buyer will have no ability to return the vehicle for a refund. Because of this possibility, people who have just newly received their car licenses must learn to check the vehicles out they want to purchase by doing their own title checks. They can’t expect the auction house to perform the most thorough search, because this is really the domain of the person who will purchase the vehicle.

Things can go wrong after people begin to buy used vehicles at auction, but those who receive a wholesale dealer license from our company, My Auto License, will not be left alone to discover everything by themselves.