There is no dealer auction license!
I receive calls and emails asking me, “How do I get a dealer auction license”? Here’s the answer.
Let me explain where the cars at the auction come from.
Then I’ll show you how to get an equivalent of an “dealer auction license” so you can attend all the wholesale dealer only auctions.
There are over 250 dealer only auctions around the country. They are closed to the public. Last year over 10 millions vehicles were sold at these auctions!
Here are the sources of these vehicles.
- Off-lease: These are vehicles that the lease has expired and it has been returned to the financial institution that financed the lease.
- Off-rental: Rental companies will normally replace their fleet every year. These are the vehicles removed from their rental inventory.
- Company/fleet cars: When companies replace their vehicles they usually dispose of them through dealer only auctions. The companies do not have the expertise nor staff to sell to the public. Also, they don’t want the legal liability of selling cars directly to the public. And they would have to be licensed dealers to sell directly to the public.
- Repossessed: These are the vehicles repossessed by financing institutions.
- Trade-in: If a dealer takes a trade that does not meet the profile of the vehicles he offers, he will send it to auction. If a car remains unsold on a used car lot, the used car manager will send it to auction.
- Salvage: There are vehicles that have been damaged by accidents, floods, fires or recovered from thefts. These are usually offered by insurance companies.
So that’s where the vehicles come from.
You can see in bad economic times when these sources are not producing as many of these used vehicles, the supply goes down. In bad economic times there are fewer new cars purchased by consumers so the demand for used cars goes up. Supply is down and demand is up which equals higher prices for used cars.
So now how do you get into auctions? The majority of the auctions use a service called AuctionAccess. This is from their website………..
“AuctionACCESS is the number one dealer registration system in North America. In-person or online, AuctionACCESS gets you “in the lanes” quickly, easily and efficiently”.
After you get your dealer license, you register with AuctionAccess and they issue you an access card to enter the dealer only auctions that use their registration service.
So there is no dealer auction license, you get access to dealer auctions by being a licensed dealer or an employee of a licensed dealer.
Watch this video that the explains the AuctionAccess service