Dealer auctions in the car industry are where car dealers go to buy inventory at wholesale prices. Dealer auctions tend to be exclusive to car dealers, allowing only licensed car dealers to attend and bid on the cars being auctioned off. Registration is required by these auctions to enter the bidding. To register, dealers must first obtain a state auto dealer's license.
Auto Dealer License
Research state laws and requirements for obtaining and maintaining an auto dealer's license. The specific requirements vary from state to state but typically require the business to meet stated size requirements, be covered by a bond, and the dealer to meet requirements for training.
Complete any training for auto dealers required by the state. These courses may include training on state "lemon" laws, business practices, and licensing requirements.
Contact the appropriate licensing agency for the state to receive any additional information and to obtain the application for licensing.
Complete the application and return it to the licensing agency along with all required documents and the application fee.
Prepare the dealership for inspection by the state's licensing agency, ensuring that all the state requirements are met including office, signage, and lot requirements. Not all states require an inspection, but those requiring an inspection typically require the inspection to be completed prior to issuing the license.
Resigster with the Auto Auction
Contact the auction and request a registration application. Some auto auctions now allow dealers to complete these online.
Compete the application, including the dealership name and information as well as the dealer's license information. This information will be verified by the auto auction.
Wait for notification from the auto auction that registration has been approved before attending an auction. Once registration has been approved by the auto auction, the dealer will be notified and allowed to participate in the auction.