How to Buy Cars Wholesale
Knowing how to buy cars wholesale can be a great way to save some money on your next vehicle purchase. Bypassing the dealer can save you thousands of dollars, depending on what type of car is purchased. High end vehicles can yield the greatest savings when purchased at a wholesale dealer auction.
- Step 1: Research the type of car you want. Finding the right vehicle can be done through proper research. Your research should include: car brand and model, wholesale and retail pricing (check NADA guides), features for the vehicle, and safety and reliability. Vehicles which are usually good candidates to consider purchasing are vehicles which have come off leases. These vehicles are typically two to three years older, with no more than 40,000 miles. Certain brands may be even better options, if the manufacturer providers maintenance for the original driver. This ensures that the previous owner kept up with the maintenance on the vehicle. Once you have decided on a vehicle, decide on how much you are willing to pay for your preferred car. Keep in mind that the more open you are with colors and option packages, the greater the chance that you will find a vehicle.
- Step 2: Obtain credentials to enter wholesale vehicle auctions. There are several ways to get into major auctions: go with a friend who has an automobile dealer license or search for a vehicle broker who will let you purchase an auction vehicle for a flat fee. If you don’t know anyone in the car selling business, going with a broker/dealer is your best option. You can find these dealers in the classifieds or on the internet. Typically, they will charge a flat fee (such as $500 dollars) for you to go along with them. Obtain a list of vehicles which will be present at a certain auction, so that you can make plans to attend in advance.
- Step 3: Inspect potential vehicles onsite. Dealer auctions employ individuals to create reports for each vehicle. These reports are much more in-depth compared to consumer inspection reports. Vehicle reports are a great starting point to narrow down the choices. Inspect the vehicle yourself as well, looking for signs of previous repair (paint work, mismatched panels, aftermarket parks). Be aware of vehicles that may not have obvious signs of damage from events such as floods. Performing your own inspection will prevent any surprises before making the decision to bid on a vehicle.
- Step 4: Bid on the desired vehicle. Be careful not to get caught up and overpay for your vehicle. If you are looking for an off lease vehicle, chances are good that there will be many to choose from. Keep a firm price range in mind, and a maximum purchase price in your mind too.
- Step 5: Pay for the vehicle. Depending on the arrangements made with your sponsor, you may have several different options to pay for the vehicle. In certain cases, you may be required to immediately pay for the vehicle. It is important to have financing pre-arranged if you plan on obtaining a loan for the vehicle.