dealer-only car auctions, good stuff?

steaknshake925 · #1 07-06-2005, 10:59 PM

so i have a friend whose dad's best friend is a car dealer guy, and he tells me about these car auctions every week that are only for folks with dealer licenses. apparently u can get some really nice deals there, cars wayyy below market value. does anyone know anything about these things? my friend said his dad's best friend (the dealer) is pretty close with him so he could probably get me in, and i think this sounds like a pretty good opportunity for profit. does anyone have any opinions about these types of auctions, is it really a good opportunity and is there anything i should know before jumping in? as u can tell i know absolutly nothing about buying cars.

thanks all,
steak

steaknshake925 · #2 07-07-2005, 12:32 AM

bump

ChipWrecked · #3 07-07-2005, 12:35 AM

I don't know about profit, but I bought a personal car this way once and did pretty well. Didn't hurt that the heater core was bad and when the steam started rising from the hood while the car was on the block, my opponent decided not to bid any more.

Fred G Sanford · #4 07-07-2005, 11:45 AM

Good deals can be found at the dealer sales but it is helpful if someone there has some experience in buying used vehicles. Major damage(i.e frame damge) is usually announced on the block but it doesnt stop people from trying to slip it past. Big problems like a bad transmission can be arbitrated but only within a certain time...usually between 24 and 48 hours. The other reason experience is good is that knowing where to stop bidding is kind of important. Some cars are more valuable to some people.

Also you can spend a whole day at the auction and not see anything you are interested in buying. Usually there is an advance list available but I dont know what sale you are going to.

If you have more specific questions feel free.

FGS

Fred G Sanford · #5 07-07-2005, 01:17 PM

[ QUOTE ]
and i think this sounds like a pretty good opportunity for profit.

[/ QUOTE ]

Didnt notice this part earlier but you will need to have a good relationship with the person whose license you are using. That dealer will actually be the seller of record and may be obligated to some short term warranty. In New York it is 30 days. Also he may be required to collect sales tax on a retail sale. That dealer needs to be compensated for the use of his books and his risk. It may not be worth it for him to do on a regular basis.

I originally thought your purpose was to get yourself a car.

FGS