Car dealer auctions are a real auto dealer industry gem. They bring together all those different dealers and promote interesting and healthy competition. At these auctions, people get to pick their perfect option from a wide range of vehicles at a below-market price. Sounds exciting, right?
Along with being a passion of vehicle dealers, these auctions are a stock place for small businesses and sometimes even private individuals. If you’re interested in car dealer auctions yet don’t know how to access one, follow our quick guide. We provide all the information you need on the topic as well as some tips on how to get car dealership auction access.
What is a Car Dealership Auction?
An auto auction works on simple premises. The company brings out hundreds of vehicles from various sources and puts them up for sale. Dealers and individual buyers then get to bid over the vehicle they’re interested in – the highest bidder gets the vehicle, of course.
Vehicles at the car dealer auctions come from many places. Sometimes they are repossessed by lenders, returned at the end of a lease, impounded by law enforcement, and more.
Now, when it comes to auto auction access, most dealers get in by filling a standard application form. However, considering most of the auctions are closed to the public, there might be some requirements individuals and businesses have to meet in order to get accepted.
Can I Get Car Dealership Auction Access as a Private Individual?
Considering car dealership auctions offer high-quality vehicles at lower prices, it’s no wonder why most individual buyers want to get in and bid. However, in most cases, a private individual won’t be able to get auto auction access. These events are mostly reserved for dealerships and return-purchases rather than one-time investments and individual buyers.
Those who would like to attend dealer auctions frequently and buy a number of vehicles over time might want to obtain a vehicle dealer’s license in their state. Although it can be a little challenging and pricey to get this license, the benefits of having it are many.
On the other hand, individuals who are not interested in getting licensed but rather attending one or two auctions should consider working with auto dealers. Because dealerships have access to the auctions, they can perform the purchase for the private buyers accordingly.
Ways for Dealerships to Get Car Dealership Auction Access
With the right dealership credentials, auto dealers can access auctions without much effort. The first and most important credential they should get is a surety bond the state government requires. The auto dealer’s license is mandatory for those who want to become car dealers and is issued only to bonded individuals and businesses.
The requirements for motor vehicle dealer licenses depend on each particular state but usually involve:
- Submitting application paperwork such as a business plan and a financial statement to the surety agency
- Leasing a dealership lot (although not always required)
- Meeting other state requirements within the industry such as a background check
- Purchasing the motor vehicle dealer surety bond
Once the dealership is bonded and licensed, the dealer can contact auction companies and apply for the next auction.
Getting a Vehicle Dealer’s License with Bonding Solutions
If you want to get bonded and licensed in order to start a dealership and access auto auctions, you’ll need a reputable surety agency to support you. Picking the surety is just as essential as obtaining the surety bond. A reliable and experienced company can back you up financially and provide much-needed guidance through the licensing process.
Bonding Solutions might be a perfect choice of surety agency in Arizona. We are a widely-trusted company with more than 60 years of experience in the industry. Since the beginning, our goal was to develop and implement special bond plans for each one of our clients, so they can make the most out of their business. No matter how small or big the company is, Bonding Solutions takes great joy in helping businesses operate and grow.