How To Get Into Car Auctions
Car auctions can be a great way to purchase a vehicle at an affordable price. However, they can also be a bit intimidating for those who are unfamiliar with the process. This article will provide step-by-step guidance on how to get into wholesale used car auctions open to the public and make sure you get the best deal possible.
Knowing how to navigate the auction process beforehand helps you get the most from your auto auction experience. From understanding the different types of auto auctions available to preparing financially, this article will explain everything you need to know about getting into car auctions in the US.
The first step is determining which type of auction is right for you. Do you want to buy from a public or private auction?
Both offer unique benefits, so it’s important to understand the differences between each option before deciding. Public auctions are open for anyone to attend, while private auctions are typically reserved for dealerships and automotive professionals.
Once you have chosen which type of auction best fits your needs, it’s time to prepare financially. Make sure you have enough money saved up beforehand so that you don’t end up spending more than necessary on the auction day.
This means finding out what all the applicable fees will be, including auction buyer fees and taxes. It’s also important to research each vehicle before bidding in order to find out its true value and not get caught up in any bidding wars that could drive up prices beyond what is reasonable.
Public Car Auctions Vs Dealer Auto Auctions
Car Auctions Open to the Public
Public car auctions offer the average consumer an opportunity to purchase a vehicle at a fraction of its retail price. These auctions are usually held in public areas, such as parking lots or warehouses, and can be attended by anyone who is interested in buying a car.
At public car auctions, vehicles are sold ‘as-is’, meaning that they have not been tested or inspected for flaws or defects. Therefore, it is important for buyers to research the vehicles before bidding on them. Public auto auctions provide an obvious answer to ‘how to buy a car at auction without a dealer license?’.
Getting into Dealer Auto Auctions
Dealer auto auctions are typically not open to the public; instead they are open only to licensed dealers. These auctions typically take place at wholesale car auction houses and can include both new and used vehicles.
Dealers use these auctions to purchase cars at discounted prices, which they then resell at retail prices. The vehicles that are sold at dealer auto auctions have all been thoroughly inspected and tested prior to sale, so buyers know what they’re getting when they bid on them.
When deciding between a public car auction and a dealer auto auction, it is important to consider what type of vehicle you want to buy and how much you can spend. Public car auctions may be perfect for those on a budget who don’t mind taking a risk on an untested vehicle, while dealer auto auctions may be ideal for buyers looking for reliable used cars with good warranties.
Getting a Local Dealer License to Bid in Dealer Auto Auctions (aka an “Auction License”)
What is sometimes referred to as an “auction license“, a retail dealers license or a wholesale used car dealers license is almost always required in order to bid at dealer auctions that do not allow the public.
If you’re wondering ‘How do i get a license to buy cars at auctions?’, just know that the process can be difficult and expensive, depending on which state you choose to become licensed in.
- Check with your state’s Department of Motor Vehicles to determine the requirements for obtaining a local dealer license.
- Complete an application for a dealer license with the Department of Motor Vehicles.
- Provide proof of a valid business address, proof of insurance, and proof of financial responsibility.
- Submit fingerprints and a criminal background check.
- Submit proof of a surety bond or a letter of credit.
- Submit a copy of the bill of sale for each vehicle you plan to purchase at the auto auction.
- Pay the applicable fees to the Department of Motor Vehicles.
- Attend an orientation or training class related to auto auctions.
- Receive your dealer license and register for the auto auction.
How To Get Into Barrett Jackson And Other Specialty Auctions
Getting into specialty car auctions can be a challenge for the novice car enthusiast. Barrett-Jackson Auctions and other high-end auctions like Mecum typically require that auction bidders have special credentials. Here are a few tips on how to get into these types of auctions:
- Have a valid driver’s license and proof of insurance.
- Obtain an auction participation number from the auction house.
- Have proof that you can pay for any cars you win at auction. This is usually done by getting pre-approved financing from a bank, or providing proof of funds from your bank account.
- Provide information to the auction house about your current residence and contact information.
At some auctions, you may also need to show proof of income or provide references before being accepted as a bidder. Additionally, some specialty car auctions may require that bidders be members of certain organizations or have special certifications related to the auction itself.
Be sure to check with the specific auction house in advance so that you know what requirements must be met to participate in their events. Lastly, make sure you review all rules and guidelines set forth by the auction house before attending an event so that you know what to expect when bidding on vehicles.
Attend an Auto Auction Near You – Know How to Get into Car Auctions
Auctions are a great way to purchase cars at a discounted price. From the public car auctions, to the dealer auto auctions, to specialty auctions such as Barrett-Jackson Auctions, there are many options available for those looking for a bargain.
With these different types of car auctions comes varying levels of competition and skill required in order to succeed. Those with experience in the field will have an advantage, but those willing to learn and take their time can also find success. The key is understanding the differences between the various car auctions and knowing what type works best for you.
For those who are new to car auctions, it is important to do your research and be patient when entering this world. With some dedication and hard work, anyone can get involved in these exciting events and score a great deal on a vehicle they love – if they’re lucky enough! As they say “you miss 100% of the shots you don’t take”.