Buying Wholesale

Contact Ferrari North America. Get a Ferrari franchise. They will then sell you cars "wholesale".

 

Yes manheim auctions. If you have a dealer license you can buy whatever crosses their system.

 

Np


Sent from my iPhone using Tapatalk

 

Let me correct that slightly: You (your agent with the dealer's license) could then BID on cars. You would have to compete with other dealers. Then your dealer friend could sell you the car AFTER collecting the appropriate taxes and registration fees.

 

what does wholesale mean?

i have manheim access and have been to numerous high line auctions. they are littered with retail buyers paying a broker a $500 fee for access.

imho, the internet has changed the business. everyone knows what everything is worth and the margins are razor thin. HENCE crazy DOC FEEs

the money is in buying used cars from private individuals looking to sell that are not trading in.

ala Carmax and everyone else that is trying to lowball you on your car

 

Very well said.

Manhiem has become a public auction with limited access.

It's nuts the money people pay at those places.

What you said happens all too often.

Margins have been absolutely destroyed.

Pretty much the only way to hold any sort of profit... Finance them and have a strong but fair doc fee.

It's quickly not becoming worth retailing cars.

 

Not always.

You are reading the MMR wrong if you are seeing margins of 30-50k or you are only looking at "dreamers" pricing. Typically private party.

Margins are typically not greater than say 10k over MMR

Also, just about any car at manhiem is going to need reconditioning. Keep in mind on an exotic car this is thousands.

Also there is a buy fee from Manhiem that is going to be 1k dollars plus. Plus if the auction isn't local... you will need to pay shipping. They you will still need to add sales tax and all of that fun stuff.

Let me give you some very wise words about auctions that I came up with.

NOT ALL CARS AT AUCTIONS ARE BAD

BUT

ALL BAD CARS GO TO AUCTIONS

 

Thats the definition of an auction lol

 

i'll assume we are talking about marshall goldman retail pricing.....

 

I could not have said this any better myself. Great post. I especially like your quote "Not all cars at auction are bad but all bad cars go to auctions. I plan to use that one moving forward

 

I only look at auction results / mmr is useless

 

MMR is auction results.

 

It's incomplete - particularly when it comes to exotics. Many sales never make the MMR for a variety of reasons.

 

Yup drives me nuts that they don't make it on their in their entirty but it gives you a very good look at the transactions and is what is used 99% of the time as opposed to going through individually to the auction results

 

Mmr is a generated value - not results. See below
Image Unavailable, Please Login

 

Correct. Too much risk for me to buy at auction when only buying 1 car... Do I want to be the high bidder in a room of pro's and guys with red mist??

If you are dealer buying multiple cars,... you cost average out the money losers (and there will be some!). As a dealer, you also buy the cars that are priced right at the hammer... not what your heart wants.

IMHO, for private single unit buyer, it's safer to find a private seller / dealer and do due diligence. Many dealer cars are consignment... they don't have much stake in the final price. They want a deal.

Just my conservative opinion. YMMV.

 

No one in the car business ever ever ever ever used the calculator at the top.

In the business people say mmr is this or Manheim is that. They look at the actual transactions as the calculator at the top can throw in transactions from 10 months ago and the market moves in 30 days.

So when people talk about mmr they aren't referring to the calculated values at the top and are just talking about transactions which are below.

 

there are plenty of good cars at auction. manheim has inspection and dispute services

 

"Wholesale" is simply a price point. You don't need to be a dealer, or buy from an auction to buy at "wholesale".

As mentioned here, the gap between "wholesale" and "retail" is getting tighter - "margin compression" is the hot buzzword in the car biz right now.

So, as you're looking for a one off event, the best you can do is narrow your search to no more than a few models, study any sort of sales results you can (MMR, auctions like RM, etc), and start making aggressive offers on cars that fit your criteria. You'll probably hear a lot of "no's", but all you need is one "yes" at an aggressive price and all of a sudden, you've effectively bought at "wholesale"... GL

 

They do... But if you are a small fish disputing against a big fish... You can get blown out of the water