Getting cars at wholesale car prices requires a little more work than the average car buyer is willing to put in, but the savings are worth it.
The price of wholesale cars is what the dealer pays from the car manufacturer. The dealer will then sell the car for more and pocket the profit. In order to get the best price on a new car, you want to try to see about purchasing it at wholesale price, or as close as you can get to this price. This will take some time and research, but it is worth it when you get that great price on a new car.
Get Car Information
You want to collect as much information about the car you are interested in purchasing. This information includes the make, year, model, engine size, type of package, audio, wheels, and mileage. The more information you have, the more accurate your wholesale price will be.
Use a Guide
You can use a guide to determine the wholesale price. There are many online guides that can provide you with this information. You just need to input the information you collected earlier. Some of the best resources for determining the wholesale and retail price of vehicles is Kelley Blue Book, Edmunds, NADAguides, and DriverSide.
Set Your Budget
Make sure you know exactly how much you are planning on spending on the car. You want to include registration, taxes, and other fees in the final price. You need to stay firm and remain under this set price. You may love a car, but it is above your price range. Be patient, as you will be able to find another one that meets your requirements.
Attend a Wholesale Car Auction
There are special auctions&#;sometimes government-sponsored&#;that occur in each state. These auctions are for dealers only and are used to rotate inventory. You can find all types of vehicles at these auctions such as a new, close to new, trade-ins and off-lease cars. In order to bid at such an auction, you will need to use a proxy dealer or have a dealer license. Once you have located your desired car at the auctions, you can start bidding. Just make sure you stay below the budgeted price, which was based on the wholesale price.
Negotiate
If you are purchasing a new car from a dealer, then you will need to negotiate to get as close as possible to the invoice price of the new car. The invoice price is another name for the wholesale price. You will be trying to reach the invoice price and the dealer will be trying to get the sticker price.
Factor in the Dealer Holdback
You want to be aware that a dealer will receive 3% of the sticker price back from the manufacturer when they sell the car. This means they actually purchase the car for less than the wholesale price. The dealer will still make a profit if you should negotiate the price close to the wholesale price. You want to use this price when you are negotiating.
Assess Other Incentives and Discounts
You want to apply as many incentives and discounts as possible to get the price down. The only thing that should not be included in this is the trade-in value. You may be eligible for cash rebates and other promotions, which can lower the price further.
How to Get Wholesale Price Cars Calculated
If you want to find the lowest prices on new cars and trucks, then you'll need to understand how car wholesale prices are calculated and determined. Knowing the wholesale or dealer invoice price of a vehicle can be valuable information when it comes time to negotiate a purchase price.
Learn the Dealer Invoice Price
The dealer invoice price is the price that all dealerships pay to the manufacturer for a particular make and model new car or truck. The dealer invoice price is determined by the manufacturer by adding the base cost of the vehicle to any added accessories are options.
Determine Other Dealer Costs
In addition to the actual purchase price of the vehicle, dealers have other costs as well. For instance, dealers need to pay for destination charges, or shipping costs, as well as other fees for dealer prep items such as anti-stain treatment, rust proofing and pin striping. Any additional services that the dealer performs or accessories that are added will increase the dealer cost of the vehicle.
Determine Hidden Dealer Discounts
Next, you'll need to determine if the vehicle is eligible for any rebates or if the manufacturer provides holdbacks for the dealer. Dealer holdbacks act as an incentive for selling new cars and trucks and usually amount to about 1% to 3% of the actual dealer invoice. Therefore, this is an additional discount that the dealer can take from the invoice price. In addition, dealers are awarded discounts in the amount of the rebate that you may take at the time of purchase.
In addition to the above costs, a dealer may also receive certain discounts for making vehicles available for fleet customers or very Internet savvy consumers. Therefore, you should do as much research on a dealer's to cost before negotiating a deal. One of the easiest ways to do this is to simply visit CarsDirect and browse thousands of new cars and trucks that are listed with a low price guarantee by CarsDirect. To get started, simply visit the cars direct new-car search page.
Other Ways to Get a New Car at the Wholesale Price
Public auctions that include bankruptcy auctions are another option, and these are increasing in number every day. Check the classified sections of you local newspapers, and other leading newspapers if you can go elsewhere to buy. Some may also be found by browsing the Internet.
Rental companies also conduct auctions for selling their older cars, or include them in larger public auctions. Most of the rental companies do this regularly when upgrading their fleets. Contact a few rental companies to find out how and when they dispose of their cars. Striking a good deal is all about trying new things, so you can even try talking to the rental company about a direct private purchase.
Banks and other financial institutions are occasionally in the car business. They may send vehicles to an auction, however, if you are in the right place at the right time you may be able to find an excellent deal for yourself.
Another great option for getting a new car at a wholesale price is to speak to the vehicle dealers directly. They have their own auctions that are normally restricted to licensed dealers, however some are open to the public. Dealers in today's economy are willing to negotiate prices as well. Never underestimate the power of a good negotiator and be willing to walk away if they are not flexible.
Visiting online used car stores and shopping at sites such as eBay will help you find used vehicles. The Kelley Blue Book offers wholesale buying tips, reviews, information on trade-in values and the suggested retail value on most car models. The Kelley Blue Book might be the best place to start in order to know whether you are finding a good value or not.
Always have a list of questions to be answered before you buy any vehicle, including the condition of the car, inside and out, the history of maintenance and repairs, and the possibility of an extended warranty. If you do not live in a cold climate, be aware that many cars driven in the north could have considerable rust from winter roads. Your extensive research can be an excellent advantage in getting a new or newer car at a wholesale price.
Is there an Equation to Determine the Wholesale Value of Your Car?
There is no one universal method of determining the wholesale value of a car. Individual vehicles depreciate at different rates due to different usage conditions and how well the particular car was taken care of. As an example, a Buick Century bought in California's Central Valley that was very well cared for would have a higher wholesale value than the same car that was kept somewhere like Minnesota or Wisconsin, where the roads are salted quite often during winter. This is true even if the same standards of maintenance and care were used on both cars because the cold weather car was used and kept in a harsher environment. General depreciation can be calculated if you know the salvage value, using the following equation: (Cost - Salvage Value) / Estimated Useful Life
Are Car Wholesale Auctions the Only Place to Get Cars at Wholesale Value?
Car wholesale auctions are great places to get excellent deals on used cars that are usually in very good condition. New car dealers will usually sell cars at these auctions that they don't want to, or can't put through the Certified Pre-Owned Programs of their parent organization. Sometimes this is because the paint or body isn't perfect. Or there may be problems they don't want to take the time to bring up to factory specifications. If you aren't a registered new or used car dealer, most of these auctions will charge you a small fee to enter the auction and be allowed to place bids.
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)Wholesale car lots are becoming increasingly attractive for dealers. The reason is simple. They are the perfect way to either get rid of their old inventory or find a bargain and make a profit.
Wholesale car auctions are accessible only to those who possess a dealer&#;s license, and they resemble a typical public auction. However, there is a lot more than meets the eye of someone who is not familiar with the automotive trade. Today, we will dive deeper into the world of wholesale auto sales.
In today&#;s world, technology dictates our lives, but it also enhances business as it reveals a number of new opportunities. Dealers have adopted online auctions as a huge part of their work. This is the main reason why wholesale car lot platforms are now a thing. Dealers like the fact that such platforms reduce their costs compared to typical old-school auctions without being too different from them.
Every dealer wants to have the best source to add stock to their inventory. Wholesale auctions allow them to find vehicles that are not available at conventional auto sales events where prices are different, and the competition is really big. The potential profit from a trade-in is bigger with wholesale auto sales.
Dealers are confident when buying a vehicle from a wholesale car auction. Auctioneers know that they need to offer the best deals if they want to stay in business. When dealers bid over the or online, they not only know that they need to give the best offer fast but also know that they will receive what they bargained for. An auctioneer&#;s reputation would be reduced to rubble if word spreads that they offer cars that do not match their description.
You actually don&#;t need a dealer&#;s license to buy a car from a wholesale car lot. All you need to do is find a dealer willing to bid on your behalf.
There&#;s a good chance for you to find nearly brand-new cars or even new ones at a wholesale car auction. Their prices would be significantly lower compared to buying the same make and model from a showroom, making the wholesale lot sales an attractive option.
Finding a dealer is not hard because many of them offer broker service. They could help anyone who wants to join the fun and bid on a car at a wholesale car auction.
You will get efficient and thoughtful service from Jixin Auto.
If you decide to go this route, make sure you check the dealer&#;s background and their feedback. As we already mentioned, a good reputation is everything in this business. Every professional dealer will give you all the information and tips you could possibly need.
Regardless of the dealer broker service, you still must do your own research. Before bidding, make sure you are aware of the vehicle&#;s actual market value, so you could compare it to its wholesale price.
Don&#;t bid too much, or you&#;ll delete the benefits of entering a wholesale lot. A broker would surely not allow that. Overbidding is a common mistake you can simply avoid by setting a maximum bid.
The processes and trends related to wholesale auctions are not exactly on track since the beginning of . The reason is obvious: the COVID-19 pandemic caused substantial damage to a lot of business sectors, including car sales.
The industry&#;s rules and price fluctuations became hard to predict in the last months, and it became tough even for the professionals to predict the market. One thing is for sure: dealers stopped buying cars for their inventory apart from those they know they need.
Nobody wants to have cars in stock that are hard to sell. The price levels might go down as we speak, or they could remain at the same level. Since dealers are used to monitoring the situation day by day, the unreliable information they have on their disposal today is no good to them. Buyers would be happy to notice better deals are waiting for them.
Despite the tough and unpredictable market environment today, there are still plenty of ways dealers use to guarantee they don&#;t run of business. Needless to say, wholesale lots offer easy access to a pool of cars that could be used by dealers to fill their inventory. The automated online platforms offer a number of features.
In case of a car that was just traded in, the dealer can get a quote on it instantly and decide to put it up for auction or not. When the dealer wants to buy a car, they preload their exact preferences and the system bids automatically, based on the vehicle&#;s detailed description. Of course, they set the automatic bid as a preference to be just over the estimated wholesale value of the particular vehicle.
You might wonder how wholesalers are able to accept a dealer&#;s old inventory and find a new buyer for it. There is no secret to that as it all comes down to calculating a vehicle&#;s correct value at the right time.
The other key ingredient is the network of dealer contacts the biggest wholesalers have at their disposal. Sometimes, the auctioned vehicles are directly transferred from one dealer to another via the wholesale lot platform.
The wholesale auto auction world is changing because of the ease of access to all kinds of information we take for granted today. One could easily use the information found online to make a good offer or to finish a negotiation successfully.
When online auctions were introduced, everyone involved greatly benefitted from technology. The time-consuming and costly process of physically bringing your car to auction and hoping that you could sell it to someone from the limited group of buyers present is something from the past.
The process is now completely different and dealers who are looking to get rid of old stock couldn&#;t be happier. The vehicles are not required to be at a particular location, and the potential buyers are not limited in any way to access the lot and bid on it.
Today, special apps have been developed. The customer-facing business strategy brought to the business-facing part of wholesaling vehicles is reshaping the industry once again. These apps have a ton of benefits, such as:
While the traditional process of wholesaling vehicles relies on the above-mentioned relationships between a wholesaler and the dealers in their network, the new app-based solution offers that same network, if not bigger, with the touch of a button.
The app allows dealers to access an almost endless variety of wholesalers and dealers. This means that the traditional negotiation process is changed as well. Calling a number of details to find the one who needs your car and is willing to pay the asking price is also obsolete when using an app.
Of course, the traditional approach is not forgotten at all. Professional wholesalers and dealers know how to handle their business and they put their partnerships and skills to work daily.
Think of dealers as consumers. If they are given an easy solution to suit their needs, they will adopt it immediately. This is why apps became a thing in the first place. Knowing that a smartphone is enough for them to make a profit is a relief.
There are other ways in which technology has impacted wholesale car auctions as well. The online platforms supporting huge car databases, for example, are of great service to both dealers and independent buyers.
Using the CARFAX system would give you instant information about a particular vehicle&#;s damage and service history. Within seconds, you would know whether to bid or walk away. This was unthinkable before the Internet era.
Regardless of whether you are a dealer, intending to buy or sell a vehicle at a wholesale car auction, or you want to use the broker services of a dealer, there are things you should consider doing before even thinking about bidding.
Dealers usually know they can make a hefty profit after they resell a vehicle they acquire from a wholesale auction. Prices at these events are usually low and the advantages of the whole buying process are many &#; it is a transparent and safe, not to mention convenient and reliable.
The first thing any potential buyer should do before bidding is to read the full description. All the details matter, especially damage history, current condition, as well as the number of previous owners.
Dealers have the option to buy a warranty covering the first 14 days after purchase. This is a good way for the buyer to be sure they will get what they paid for. Even if the actual seller is present at the auction, you still buy their vehicle through the auction system.
Make sure you buy cars with a clean title. Salvage vehicles or &#;rebuilt salvage&#; titles are not an option if you want to maximize your profit. There are salvage auto auctions out there that have different clientele. These events have their own advantages, but they are different from wholesale auctions.
Further reading: The Pros and Cons of Buying a Salvage Car
Keep in mind that vehicles are auctioned for less than a minute, so you need to be quick. Experienced dealers are usually good bidders, and they could make the final bid on your behalf in case you appointed one as your broker.
If an online wholesale auto auction allows, you should register as a buyer. Most of the big wholesale auctions, however, are accessible only by dealers and require having the relevant license. As we already mentioned, you could use them as your broker. Having a license is a great way to access the lowest offers and other advantages.
You should always be aware of your actual desire to buy a certain car. Bidding is a good idea only when you assess its condition and take all the other small details into account, instead of focusing on a certain aspect you like about it. If you feel like you cannot determine the wholesale value of a vehicle, you can always use the Kelly Blue Book (KBB) for reference.
Next, make sure you stick to your budget. Never bid when emotional as it could result in an unpleasant loss. If you decide to use a specialized online wholesale auto auction, you could avoid placing a high bid by setting the maximum and seeing what happens next. Here is a reminder: the final price of the car includes fees and taxes, meaning that the cost of ownership must be evaluated.
Every bidder should take their time and read the wholesale car auction&#;s terms and conditions. To make the most of it, you need to know the schedule, the rules, the payment options, the fees you would owe if you place a winning bid, etc. Knowing everything about these things is always an advantage.
Wholesale auto sales is a changing industry. It becomes easily accessible even for non-professionals. Technology has reshaped this business for good: it is now a faster, straightforward process.
If you are prepared as well as you should be, great deals are waiting for you just around the corner. Or simply a click away!
Online wholesale auction platforms and specialized apps are the modern tools dealers use to stay up-to-date and to have an advantage when bidding.
The coronavirus outbreak made things unpredictable, the market fluctuations cannot be determined, and a wild guess just won&#;t do. Despite that, wholesale auctions are attracting more people every year, and the number of deals will rise in the near future for sure.
If you&#;d like to find your dream car for a fraction of the price you&#;d pay if it were a new one, register on our website &#; bidexport.com. You have over 150,000 used vehicles to bid on.
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