Facts on Wholesale Cars

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    • According to Autos.com, wholesale auto brokers are companies that sell cars to dealerships and to the general public. Unlike dealerships, they do not need to devote a portion of their profits to covering advertising costs, since the majority of their business is to dealerships. When you purchase a car from a dealership, whether it is a new or used car, the wholesale price is what the dealership paid the wholesale broker for the car. By using a broker, you cut out the dealership middle-man.


    • One place to find wholesale cars is at auctions, according to Autos.com. Auctions are a great place to find government vehicles, impounded cars that have not been claimed and excess inventory cars from dealerships. When you attend an auction you are not only bidding against individuals, but also against smaller used car dealerships that are looking to complete a specific order or to add to their own inventory. You are not required to purchase anything at an auction--simply register and you can watch or join in the bidding. You should, however, have all of your financing arranged prior to attending, since you will be required to at least make a down payment if you place a winning bid.

    Online Brokers

    • The majority of wholesale auto brokers that sell to the general public are online, according to Autos.com and WholesaleCars.com. As an online broker, they are able to cut their costs and sell more cars than a traditional brick-and-mortar dealership. If you know specifically what kind of car you are looking for, this is a good option. Online wholesale dealerships sell both new and used cars and often sell for the Kelly Blue Book price, based on the age of the car, the options that car has and the mileage and any possible damage to the car.

    Getting a Dealership License

    • There are some states that do not allow individuals to purchase cars directly from wholesale car brokers. In this case, it may be worth your while to get a dealership license, according to Cars.com. If you anticipate that you will be purchasing a number of cars, this is a good route, although it can incur some up-front expenses that you would not have if you were to buy directly from an online car broker.

    Buying Foreign Cars

    • One of the options available from wholesale car brokers is the ability to purchase a car overseas and have it shipped to the United States for a fee. According to Autos.com, this is an excellent way to save money if you are planning on purchasing a luxury car that is difficult to find in the United States. Although shipping fees can be hefty, what you save in tariff fees may justify spending the money in purchasing a car this way.

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