You can find a lot of options when it comes to buying a car. However, the point to ponder is where do car dealers get these cars from? Different dealers would have unique models of cars. Also, every car that dealers present is identical in terms of its condition, mileage, color, specifications, and a lot more aspects. It is good to have the know-how of the sources or places they get the cars from. It will also help you make an informed decision.

Here are a few sources mentioned where the dealers get their cars.

  • Rental Companies

Rental companies sometimes sell their cars to the dealers directly. They also sell some cars indirectly to the huge dealer groups through the manufacturer. You can check the manufacturer’s website to see what options are available in the sale. Some websites would also have the retail section for the dealers.

Moreover, the cars that are no longer of any use to the rental companies are disposed of in closed auctions. The dealers buy those cars and fix the issues to make them work. However, the risk is involved in the process but it helps the dealers get a huge profit at the end of the day.

  • Auctions

Auction is another place where dealers buy cars. However, there are multiple types of options, so it depends upon the dealer which one he chooses to get his cars. One type of auction is “Dealer only” that is considered to be a closed auction. It is run by the manufacturer itself to sell program cars. This type of cars has been maintained well usually, so the profit margin is high.

The vehicles that are not sold at closed auction are then sent to open auctions. You can find a wide variety of cars in an open auction in different price ranges. Another way for dealers to buy cars is through police car auctions online. Since police seize a huge number of cars every day, it is the best way to get high-quality cars at a reasonable price.

  • Private Sellers

Dealers also get in touch with private sellers to buy multiple types of cars. People send their old cars to dealers at a good rate to get cash instantly. Since dealers have a good know-how of cars, they buy the ones from which they can earn a huge profit. Another way to get cars from private sellers is through the trader. A trader keeps his commission and sells the car further to the dealer. So, dealers make contacts with traders as well to keep themselves updated about the suitable options of cars.

  • Finance Companies

Finance companies also get a lot of cars every month that comes off lease. They further send cars to the supermarket. However, if the cars don’t get sold out in the supermarket within the agreed period, the finance companies send them to the auctions. So, the dealers can get cars indirectly from the auctions or directly from the finance companies after establishing contact with them.

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