A dealer-only auction requires a car dealer license in all 50 states and is the main way dealerships rotate excess inventory. Unlike public auctions dealer-only auctions tend to offer close to new cars, new cars, recent trade-ins or just off-lease vehicles. read more
Depending on the specific public auction there might be other requirements. Though, federal auto auctions are pretty clear cut in terms of their restrictions. Any licensed driver at least eighteen years of age can purchase a car at a federal auto auction. Licensed dealers, though, can generally avoid sales tax when buying at public auctions. read more
The greatest disadvantages are not being able to buy cars at exclusive dealer-only car auctions and being restricted by the state limit on how many cars that can be sold in a year. BALANCE PROS AND CONS . Many unlicensed dealers get licensed and earn a fantastic living. Others continue buying and selling cars without a license. read more