Wholesale Auto Auctions

Car auctions abound in variety and some of them include wholesale auto auctions, government car auctions, public auto auctions and online auto auctions. Though this article primarily deals with wholesale auto auctions, there is passing reference to other types of online car auctions.

The majority of the vehicles auctioned in wholesale auto auctions are surplus cars liquidated by vehicle manufacturers, government departments, police department, banks and insurance companies, franchise dealerships and car rental companies.

There is also the case of autos seized or repossessed from organizations/commercial establishments due to their inability to make the car repayments. Almost a whopping ten million vehicles are sold every year through wholesale auto auctions.

Features/Benefits of Wholesale Auto Auctions:

• For the business owner looking for a posse of cars for his sales team, wholesale auto auctions give him the opportunity to buy a fleet of vehicles at a far lower price than what he would find at a dealer's outfit.
  
  
• The huge savings in car costs at such auctions can be attributed to the lack of overheads like showroom space and the accompanying advertising. Moreover, the salaries paid to car salesmen, other commissions and the cost of large inventories are made redundant with wholesale auto auctions.
  
  
• There are people who pursue a full time profession of buying cars cheap at wholesale car auctions and in turn sell them privately with a huge profit margin.
  
  
• In general, the vehicles at these wholesale auctions are sold for pittance compared to the prices they would sell for at a dealer's.
  
  
• Depending on the auctioneer conducting the proceedings, wholesale auto auctions can sell multiple cars in one lot or auction off each car individually.
  
  
• Wholesale auto auctions are comprised of both old and late model cars with popular brands like Mercedes, BMW, Honda, Toyota, Nissan and even SUVs and trucks.
  
  
• The rules governing wholesale auto auctions in the different states of USA varies from one state to another.
  
  

Drawbacks of Wholesale Auto Auctions:

• Wholesale auctions are not open to the general public.
  
  
• Only dealers registered with auctioneers conducting the wholesale auto auctions are permitted to participate. If you want to buy a car from wholesale auctions, you have to hire a car dealer who is registered to take part in the auction to represent you.
  
  
• All cars are sold in "as is" condition and the buyer is responsible for due diligence in checking out the antecedents of the cars being purchased.

There are other types like the insurance auto and salvage car auctions. These are dealers only auto auctions. The general public can participate in government car auctions. You can read more about government car auctions.