How to Buy a Car Like a Dealer
Know the difference between a dealer-only wholesale auction and a public, repossession or other retail auction., Decide which car you want, the options you need, and the condition for which you are willing to settle., Use an independent source to...
Step-by-Step Guide
-
Step 1: Know the difference between a dealer-only wholesale auction and a public
A dealer-only auction requires a car dealer license in all 50 states and is the main way dealerships rotate excess inventory.
Unlike public auctions dealer-only auctions tend to offer close to new cars, new cars, recent trade-ins or just off-lease vehicles.
In addition, many vehicles are detailed, have existing warranties and are carefully rated as to condition.
Public car auctions are open to anybody, including savvy dealers, so the prices may not be as low as the hype suggests.
You see these advertised all over the place including online and in the backs of newspapers. -
Step 2: repossession or other retail auction.
Be as flexible as you can as you will be buying at auction. , The most frequently used sources for this are, DriverSide, Edmunds, Kelly Blue Book and Nadaguides.
NADAguides is owned by the Automobile Dealers Associations so their pricing is always most favorable to the dealer
- not the consumer. , Do not forget that your final price will include taxes, registration and other fees.
Also consider ongoing costs
- sites like DriverSide will help you estimate cost of ownership. ,, A proxy buyer is an individual (sometimes a group) who has a legal dealer license and runs a service where he or she attends wholesale auctions to buy an individual car for you.
Acquire a dealer license.
This is typically a time-consuming and expensive process that is not practical unless you plan to buy and sell cars as a business.
States rely on taxing dealerships for income, so there is little or no incentive for a state to grant a license to an individual who does not plan to operate as a car dealer. , Once you have found one that has the vehicle you want, make arrangements to attend the auction or have your proxy buyer attend the auction. , Each auto auction will have its own terms; verify these in advance make sure that you have the correct payment options available if you win the car. , -
Step 3: Decide which car you want
-
Step 4: the options you need
-
Step 5: and the condition for which you are willing to settle.
-
Step 6: Use an independent source to determine the wholesale and retail values of your target vehicle.
-
Step 7: Settle on a budget.
-
Step 8: Decide that you will not exceed this budget under any circumstances; a key aspect of buying a car like a dealer is not to let emotions cause you to spend more than you decided to.
-
Step 9: Get access to wholesale auctions using one of these methods: Locate
-
Step 10: research and retain a proxy buyer or proxy dealer who has access to wholesale auctions.
-
Step 11: Research local auctions to find out times
-
Step 12: locations and get a list of available vehicles.
-
Step 13: Make any necessary financial arrangements.
-
Step 14: Stay in close contact with your proxy buyer while locating the car you want through purchase and delivery.
Detailed Guide
A dealer-only auction requires a car dealer license in all 50 states and is the main way dealerships rotate excess inventory.
Unlike public auctions dealer-only auctions tend to offer close to new cars, new cars, recent trade-ins or just off-lease vehicles.
In addition, many vehicles are detailed, have existing warranties and are carefully rated as to condition.
Public car auctions are open to anybody, including savvy dealers, so the prices may not be as low as the hype suggests.
You see these advertised all over the place including online and in the backs of newspapers.
Be as flexible as you can as you will be buying at auction. , The most frequently used sources for this are, DriverSide, Edmunds, Kelly Blue Book and Nadaguides.
NADAguides is owned by the Automobile Dealers Associations so their pricing is always most favorable to the dealer
- not the consumer. , Do not forget that your final price will include taxes, registration and other fees.
Also consider ongoing costs
- sites like DriverSide will help you estimate cost of ownership. ,, A proxy buyer is an individual (sometimes a group) who has a legal dealer license and runs a service where he or she attends wholesale auctions to buy an individual car for you.
Acquire a dealer license.
This is typically a time-consuming and expensive process that is not practical unless you plan to buy and sell cars as a business.
States rely on taxing dealerships for income, so there is little or no incentive for a state to grant a license to an individual who does not plan to operate as a car dealer. , Once you have found one that has the vehicle you want, make arrangements to attend the auction or have your proxy buyer attend the auction. , Each auto auction will have its own terms; verify these in advance make sure that you have the correct payment options available if you win the car. ,
About the Author
Deborah Kennedy
Professional writer focused on creating easy-to-follow hobbies tutorials.
Rate This Guide
How helpful was this guide? Click to rate: