How to Buy Cars Wholesale
- 1). Look for listings for public wholesale auctions. A public auction will not have the lower prices of a dealer auction. However, you don’t have to obtain a dealer’s license to attend a public auction. These are usually advertised in newspapers and on the Internet long in advance to get publicity.
- 2). Obtain a dealer’s license if you are convinced you’d rather attend a dealer’s wholesale auction. There is a great deal of paperwork involved. However, traditionally the dealer auctions offer lower prices. Consult your local DMV for the proper forms.
- 3). Consult a third-party information source to determine what a fair market value is for a specific car and how it will fit into your budget. Kelly Blue Book is a traditional resource for this information, as is Edmunds (see Resources below). These services break down cars by year, model, make and option and give you a price based on condition.
- 4). Inspect the car you intend to bid on thoroughly. You will not be allowed to test-drive a car at an auction, so it is important to look into the car’s condition to determine what the value of the car will be. Get the VIN number if you can and run a Carfax search on the vehicle (see Resources). This will at least show you the vehicle's ownership history.
- 5). Register for bidding if the auction you are attending requires it. This may mean you will pay a fee and fill out paperwork to obtain a bidding number and a paddle. However, more low-key auctions will simply use the hand-raising method of bidding.
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