I am planning to buy an off-lease car directly from the bank/finance company. They usually send the off-lease cars to Manheim auction. I don’t have a dealer license to place a bid on those cars. However, there are many people that sell the dealer license for $$$. For example, I am thinking to get one from ezautodlr.com.
They need my SSN and $$$ to give me access to auctions.
Do you think it worth the hassle for a single transaction?
When I researched this, my conclusion was that the only way to go was a very experienced, very reputable dealer who would select, bid and buy the car on your behalf. There’s a decent chance of someone uninformed ending up with a money pit (or at least need enough $ to destroy any savings vs buying private party).
Guys. SSN/TIN is required to register in the national auction access database. They can not register me as wholesale agents without that. I would love to buy from auction without giving up my ssn but I need access to manheim website to research how much should I put for a reasonable bid.
If you really want a dealer license to do this, why don’t you go to your state website, figure out how to get your license legally and ethically, and do it the right way vs potentially getting scammed for a very expensive piece of paper that gets you nowhere?
For just 1 car this is overly complicated and a bigger risk going through this process.
If you’re just buying 1 car find a dealer/salvager/etc who goes to auctions in your area (or wherever that have the cars you’re looking for), you can tag along with them and they can even help give you pointers.
The answer is no. It’s not worth it. Cars at auction (if they’re desirable) aren’t that much cheaper than cars on a dealer lot. Another thing to keep in mind is that auction cars often need work done to them before they can be sold. It’s definitely not worth it for a one time thing. Buying a car at an auction is a huge risk with no recourse, and I’ve been fucked more than once doing it. It’s especially not worth the $1400 that the website you linked wants. Often enough, there might only be a difference of $2k between what the car goes for at auction and retail.
The best auction to go are dealer/broker auctions requires a license (or somebody with one to accompany you). Manheim is the largest car auction in the US. If you have a broker/dealer license and go to their website and see what is available, what was sold (the prices) and bid if you don’t want to go in person.
I just took a college class at our local city college named “Used car salesmen certification course”. The last day (actually weekend since they were night classes) we went to a broker auction. I took the course to understand the entire car sales process (new, used a lease) to better prepare myself on my future car buying/leasing.
There were over 4K cars and the auction process is totally chaotic. Those auctions are where 80% of the good cars you see at ALL dealerships (reported by the auction office discussion).
I met this guy who’s primary job is to get cars for dealerships in which he sells to them with a profit for himself. Also, since the guy has a broker license, he gets good cars from auction, puts the dealership plates (pays no tax, DMV fees etc. until he sells then its up to the buyer to pay) on and after three or more months sells at a pretty decent profit. He was driving a 2018 Dodge Ram Limited 4X4 he got at auction (had dealer plates).
I saw a 2017 MBZ S550 coupe with 15K miles sell at auction for $50K. I also saw a 2017 Cadillac ATS 3.6 go for 12K. However, the place was so crazy that I would have to go many many times to get an idea how to bid and win. Its very intimidating if you do not know the process. My instructor is going on another field trip next month and I plan to attend (this time in Pomona CA).
Although it looks like the dealership makes good money on used cars, if they get a great deal, they don’t because of all the prep work they have to do to the car prior to getting it on the lot. Then there is the time on the lot to get it sold.