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Where can I find wholesale used cars?

Used car lots typically get wholesale vehicles for sale on the lot. The dealerships cannot make money and keep the business afloat by paying full-price for used vehicles. Purchasing vehicles at-cost or at wholesale prices help the business pay for operating cost and pay the salaries of any employees.

Wholesale vehicles are much less expensive than new vehicles. When you see a vehicle on a car lot, you might not realize that the lot paid several thousand dollars less than the price on the windshield. Depending on your area and your experience, you might have the chance to purchased wholesale vehicles yourself. Once you start buying those vehicles, make sure that you enter your ZIP code and find cheap auto insurance rates for your area for FREE!

Wholesale Brokers

One of the best places to find wholesale cars is through a wholesale broker. A broker is someone that buys cars from another dealer and offers those vehicles to car lots. A broker can also act as a middleman by doing the legwork for another seller. The broker works out deals between the seller and the buyer, and receives a percentage of the sale for his work.

The problem with using a wholesale broker is that most brokers only work with car lots and dealerships. If you are an individual, then the broker might not work with you. Most brokers prefer working with someone that can purchase multiple vehicles at one time.

Car Auctions

Car auctions fall into one of several categories, including:

• Sheriff auctions
• Online auctions
• Charity auctions
• Insurance auctions
• Liquidation auctions

Not all auctions are open to the general public, and some require that you have a vendor’s number or a dealership license before bidding. When you attend the auction, you must bring cash with you because the auctions do not accept checks or credit cards. Arrive as early as you can and bring a value guide with you, like the Kelly Blue Book. The book tells you the value of almost every vehicle you see, and keeps you from spending too much on cars.

Insurance Auctions

Insurance auctions consist of vehicles that insurance companies view as less valuable. Many of the cars were in accidents or have problems with the engine and/or body. Instead of selling the cars to a junkyard, the insurance company offers the vehicles for sale in an auction setting. It’s a great way to find cheap wholesale cars.

Insurance auctions sometimes include rental vehicles. The vehicles are in almost new condition, but have a large number of miles on the engine. Not all rental car companies sell their vehicles at auction, as some have dedicated car lots for that purpose.

Liquidation Auctions

Liquidation auctions offer vehicles at rock-bottom prices, though most are only open to dealers or brokers. The cars typically come from car lots, rental agencies and other businesses that no longer need the vehicles.

Sheriff Auctions/Sales

Law enforcement hosts several sales and auctions every year for property seized during investigations. The money those sales bring in go back to support local law enforcement. You can find advertisements for these sales in your local newspaper. Some departments host sales with a set price attached to vehicles, while others run those vehicles through an auction setting.

Charity Auctions

Several charities accept donations in the form of vehicles, offering those vehicles for sale at auction. Every car sells as-is and you cannot examine the vehicles with a mechanic. Car lots often attend these auctions because the vehicles sell at or below wholesale prices. Keep in mind that if the car does not run, you must still take it off the lot within 24 hours or on the day of the auction.

Online Auctions

You can also find wholesale cars at online auctions. Most of these cars belong to a single owner. Depending on the seller, he might let you come by and examine the car in-person before placing a bid. The key to winning at online auctions is to pay attention to the ending date and stick to the price that you want to pay.

Junkyards

You might not realize that junkyards hold a wealth of valuable cars and parts. The vehicles at the junkyard include damaged vehicles, vehicles that no longer run and some cars with only minor damage. Junkyards are more willing to work with individuals if you make a bulk purchase.

Car Lots

Believe it or not, some car lots sell vehicles at wholesale prices. The car lots constantly turn over inventory because the owner knows that he needs fresh inventory. The cars are not as cheap as they are when sold by a broker, but cheaper than buying from other sources. The owner of the lot will often let cars go for a few hundred dollars over his original cost.

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