When a car dealer spends say $10K for a luxury used car at one of those dealer-only wholesale car auctions, how much would the dealer typically be able to sell the car for at retail? (I understand that the mark-up from auctionn price to retail price can be tremendous.)

The reason I ask this question is that I'm considering going through the process of obtaining an automotive sales license (under Canadian provincial regulations, not US state regs) in order to purchase a luxury used car at one of those auctions.

If there are potentially thousands of dollars to be saved, I would do it. If not, then I wouldn't bother.

Anyone have some solid information on this?

Thanks.

 

next store neighbor bought a toyota high lander at one for 10k 2 years ago, she loves it. i dunno bout canada regs but i know in america you cant get the car checked out before you buy so its if-y. but nextstore neighbors was perfect. other than it not being an accord,

 

The cost of savings can be less than you think.
Dealer insurance is pretty high priced.....and the buyers/sellers at the auctions are running up the prices using Kelly prices. FYI Kelly prices are based on used car dealer "asking" price......not on actual avg. sale prices.

I spent a couple years going to dealer auctions; one of the first things you have to figure out is WHY the car is at the auction....Trans bad? engine? salvage title?
If the car was a "Creampuff" the seller would be retailing it at their own used car lot.

The best deals I saw were GMAC finance 'off lease' cars, but they always brought top prices as well.
You'd be lucky to save yourself a grand, after insurance, title fees, dealer tags, etc

 

Dude, thanks very much for the information!

The reason I posted this is that I learned that an '01 LS430 with 50k miles on it was traded in by its woman-owner for a new Mercedes (what a mistake!) at a Mercedes dealer in Vancouver, BC. Rather than put that fantastic car on their lot, they put the vehicle in what I understand was one of these dealer-only auctions. (I can see some logic in why they might have done that, OTHER than that the vehicle was a lemon.)

A small used car dealer obtained the car at that auction and he then put it on his lot for sale at the typical retail price for that vehicle in that condition, etc. As a result of some research on the net, I believe that the dealer may have made a cool $5K on the deal, but maybe I'm all wrong on that.

I have no idea what the small dealer paid for the car, but, whatever he paid for it, I'd also like to pay that amount, rather than that amount PLUS whatever profit the dealer made on the deal.

As far as auction-vehicle condition goes, that particular vehicle was apparently driven by the stereotypical "little old lady, only on Sunday". Of course, that will not be the case for every LS430 on the auction block, but the typical drivers of these vehicles tend to drive them conservatively, and such a vehicle that also has only 50k real miles on it will likely not be mechanically decrepit, especially if one can obtain the VIN before the auction and determine that its odometer is accurate, has a good maintenance history, no accident history, etc.

Anyway, I'm just a tightwad trying to find a way to get an LS430 as cheaply as possible and I thought going the DIY-dealer route might be a reasonable way to accomplish that.

Again, dude, thanks for the advice.