What is automotive wholesaling?
Wholesalers buy vehicles at auction or from dealers that are having trouble retailing. They then turn around and sell the vehicle for a significant profile. Wholesaling trade-ins is often seen as a necessary evil for managing inventory by moving aged units so they aren't tying up funds.
Is a car broker the same as a dealer?
A Dealer is the car company that owns the cars they are making available for lease and purchase. A Broker is an impartial “middleman” who works for the buyer to find the best deal available on a vehicle that the buyer wants.
Can a wholesaler sell cars to the public?
California has two types of Dealer licenses for selling pre-owned vehicles; Retail and Wholesale. Retail Dealers can access dealer-only auctions, sell to other Dealers -and- sell vehicles to the public. ... Wholesale Dealers can also access dealer-only auctions, sell to other Dealers but not to the public.
What is a dealers wholesale price?
The wholesale value of a vehicle is the value that a dealer would pay to purchase it from a car manufacturer. In the case of trade-in vehicles, the wholesale price might also be the price a dealer would pay to purchase the vehicle from a dealer auction. In any case, wholesale value is a measure of dealer cost.