No Dealers Licence to Bid at Government Auctions?
Thousands of cars are sold at government auctions at unbelievable prices. These cars are acquired through asset recoveries, remarketed vehicles, insurance losses, fleet vehicles, impounded vehicles, repossessed vehicles, theft recoveries, damaged or collisions vehicles, salvage vehicles and Lein law foreclosures, government seized vehicles and previously leased vehicles. These vehicles are handed over to consignors for selling. Car dealers have licenses to buy these vehicles from the source directly and thereby save thousands.
Not having a dealer’s license has many disadvantages. People with the license can buy cars at dirt cheap rates from used car auctions. A license would allow you into vehicle auctions that are only for dealers. These used car auctions sell cars at wholesale rates. Therefore dealer license would allow you to bid at dealer auctions across the nation. This license allows purchase of cars from new dealerships. Sometimes a new car might not be attractive enough to be displayed and these are sold off through the back door.
A license allows you to purchase as many cars as you want. There is no limit to the number of cars that can be purchased. Without a license there is state enforced restriction on the number of cars that can be bought in a persons’ name in one year. Some states do not allow the sale of even one car of a person in a year. The license allows the use of license dealer’s plates which allows the use of the car or vehicle through most states without having to register it or transfer ownership to your name. The most important advantage of having a dealer’s license is not having to negotiate with private parties on price. Cheap cars are available at dealer auctions in hundreds.
Bidding in government auctions does not dealer’s license. Local auctions conducted by the government are for the benefit of the common man and anybody ca walk into one of these and bid on nay vehicle that catches their fancy. There are no rules and regulations and certainly no license that is required for bidding here. The auctions are conducted periodically to dispose off vehicles that have been either seized or confiscated. The vehicles are sold off cheaply to avoid the cost of maintenance and storage. The vehicles in these used car auctions are very cheap and in perfect condition.
A dealer’s license is beneficial for those who want to try a hand at auto dealing, or start a dealership. With such plans it is mandatory to have access to larger number of cars at lower prices than that offered at government auctions. The wholesale prices of cars and the numbers at dealer auctions are for those who conduct business with the same. There is no need for a common man to try to get one car at the dealer auction and for this get a dealer license which is a cumbersome process and would cost a minimum of five hundred dollars. The prices of cars at government auctions are comparable and definitely the entire process of bidding and winning is simpler here since there is no competition from professionals.