Not all buyers want to do this. Finding a dealer to work with can be tedious, and most of these will expect to be paid for their inconvenience. This lowers the value of the car, since paying a dealer will cost more, raising its price and lowering any possible resale value. You don’t always have to work with a dealer when you buy a car online. How to buy a car from a dealer that everyone knows, but can you buy a car without a license?
This is what you need to know to buy a car at an auction without a commercial license
Accessing Individual Auctions
Some auctions display their merchandise to the general public on a limited basis. Try to contact the person or organization that manages the auction and ask about it. Occasionally, you can pay a single-use license to access the auction, or you can even pay more to gain access without a dealer license. At the auction site you can find the costs of a license.
Getting Help from a Friend
If you know someone who is going to an auction, asking them to attend on your behalf is a great alternative. It doesn’t put extra effort on your friend, which means you can still save money.
Of course, few people have friends in the automotive industry, and even those who do may not know anyone who frequents auctions. That’s why it’s wise to get involved in the dealer community if you’re hoping to become one, buy vehicles at auctions, or just learn more about the industry. Start attending meetings and auctions that are open to the public, or participate in online discussion forums. By getting involved, you make sure you have access when you need it.
Obtain a Distributor License
There is no rule or requirement that implies a minimum of sales, and you do not have to be a real distributor to look for a commercial license. The process of applying for a license can be quite time consuming in some states, so plan ahead so you don’t choke on paperwork. Once you have your license, you can access attractive auction offers from car dealers and dealers across the country.
So is it worth it to get a dealer license? If there is a car you are eager to buy, the answer is yes, even if you never plan to set foot in an auction again. Otherwise, ask yourself the following questions:
- I hope to get more involved in the car community? If so, a license can help you.
- Is it possible for me to make this a side business? A license makes it legal and gives you the incentive you need to try it out.
- How many vehicles do I plan to buy and sell? If the answer is more than one, it is almost always worth going ahead and licensing the dealer.
- Does the cost of the license eliminate potential savings at auction? If it will cost you more to get a license than it will save you buying a car at auction, consider a more traditional route to buy one.
- Have I been educated about the process of buying an auction vehicle? Don’t waste time searching for a dealer license until you know what you’re doing.
Going to the Online World
How to buy a car online? Before investing time and energy in planning a dealership auction, consider whether doing online is a good option. Many online auctions are open to the general public, but offer discounts similar to what you might get at a dealership auction. Examine each of these to see if you can find an attractive business. If so, it’s worth a deal. After all, a license takes time, finding an agent takes longer and putting your fate in the hands of someone else at an auction you don’t attend is always a risky proposition.
Work with an Intermediary
A broker works on your behalf at a dealership. Their role is almost identical to that of a dealership at auction, with one exception: A dealership does you a favor, but a broker specializes in representing customers at dealer auctions. That means he / she can offer more competitive rates, and will be better equipped to get a good deal. The broker definitely knows how to buy a car online. Plus, they can work with you to establish an ideal range of offers and to assess whether a car is a good deal, a solid investment, or just a waste of money.
Benefits of working with a dealer
Think twice before ruling out preferring a dealer over a broker, searching for a business license, or going online. Ask yourself why you want to avoid working with a dealer. It can be a great ally, especially when there are no other good options for you. They know the industry, regularly attend auctions, and know what to expect. So while you certainly don’t have to work with a dealer to get that shiny used car you’ve been looking for, a dealer could be your best ally, even if you’ve initially been reluctant to partner with one.