Tips for Buying Cars for Wholesale

January 27, 2012

One of the most lucrative careers involving the buying and selling of automobiles involves purchasing cars for wholesale in other locations. This can mean that you purchase cars from dealers for export or that you purhcase vehicles to be used at an auction, or it can even signify the process of purchasing cars in bulk for other uses as well. In any case, if you know the best way to find a good deal on wholesale cars, you'll stand to save a good amount of money off of the costs of your purchase. Read on for some tips on buying cars of rhte purposes of wholesale redistribution.

Be Aware of Any Licensing You Need

Some states require that wholesale car dealers or exporters obtain a state license in order to operate any sort of business that involves the buying and selling of cars for wholesale purposes. In other cases, you may not be required to obtain such a license, but having a license may cut down on the taxes and other fees that you'd be required to pay for the cost of the car, so it's advantageous to invest the time and effort into getting one. Check with your local DMV for more information.

Take Advantage of Dealer Auctions

The primary venue in which cars are sold at wholesale prices (which are significantly lower than retail prices) is the dealer auction. These auctions are typically not open to the public and are only available to people who have dealer licenses, as mentioned above. There are a variety of ways to find out about dealer auctions in your location. You may try asking dealers who are already established in your area, although some of these individuals are reluctant to share information about good auction sites with potential competitors. You can also look online for listings of dealer auctions close to you. In many cases, you'll have the best luck with your search for a dealer auction if you expand your range of search to include the nearest major cities.

Check Each Car

When you have located the site of a good dealer auction or another venue for purchasing wholesale cars, you'll need to remember to check each and every vehicle that you're considering purchasing before you sign off on any negotiations. The reason that this is especially important for a wholesaler is that these individuals plan on reselling vehicles that they've bought int hese cases; if your cars are defective in any way, that may harm your reputation as a dealer or reseller, and it may cost you additional money in repairs and other costs. Get a good checklist of items to check for on any car, or hire a mechanic to help you test each vehicle for signs of faulty parts.

If you have any other questions about the process of buying cars for wholesale, contact a wholesale dealer near you for additional advice.