Are you considering launching an auto wholesaler business this fall? Now couldn't be a better time.
Research shows that motor vehicle wholesalers in June 2023 earned an average of $28.54 per hour. That's equivalent to nearly $60,000 annually at 40 hours per week.
Car wholesaling involves buying cars from auctions and car dealerships and selling them to other car dealers versus the public. This career field is in demand because vehicle wholesaling may save car dealerships time and money. They can rely on wholesalers to find them quality vehicles to sell so that they don't have to do this themselves.
How does auto wholesaling work? Let's explore the vehicle wholesaling career field and how partnering with a car transport company can help.
What Is An Auto Wholesaler?
An auto wholesaler can purchase and sell several types of cars from auctions and dealerships. These include used cars, off-lease, and new cars. Their salaries depend on the following:
- How many cars they sell
- The brands they provide
- Whether their cars are used or new
You'll need a license from your state's motor vehicle department to launch a wholesale auto business. Speak with them about their specific licensing regulations since states have different requirements.
Let's say you want to launch a wholesaling business in Arizona. This state offers two kinds of licenses: wholesale auction and wholesale dealer.
Wholesale dealers may run their businesses from their homes. Their customers must be other licensed car dealers.
A wholesale auction dealer can't own, sell, or buy the vehicles they auction. These parties can only engage in wholesale transactions.
Getting either license will require you to complete a licensing form on the motor vehicle department website. You must provide your fingerprint on a card from a local police agency with the application.
Your application must also include proof of purchase of a car dealer bond (a contract) and an application fee. The bond demonstrates that you agree to run your business in alignment with applicable industry regulations and rules.
Launching Your Wholesaling Company
Buy or rent space for your auto wholesaling business after you've received your license. Remember that your home may be your business site if your state permits this.
Auto wholesalers in some states must meet specific criteria for storing the vehicles they're selling. Contact your area's zoning board to discuss their requirements so you can comply with them.
You're ready to start searching for local vehicle auctions to buy cars from once you've established a place to do business. Use Kelley Blue Book to determine the current prices of used and new vehicles before placing bids in person or online. This will help ensure you get your automobiles at fair prices.
Promote your new company to local dealerships by visiting them in person or calling them to share information about your service. Facebook or Google ads may also help draw attention to your business. Create a website for displaying your inventory.
Auto Transport Process
You may need to transport a car from a dealer to your business site after purchasing it. You might need to repeat this process to send a vehicle to a buyer after making a sale.
An auto transport company can help with this. Car transport services save you the time, money, and hassle of driving your inventory to and from sellers and buyers.
Reputable auto transport services have liability insurance to protect your vehicles during transport. You may purchase additional auto transport insurance to ensure your car is fully covered if damaged while in transit.
Open Auto Transport vs. Enclosed Transport
Two vehicle transport methods are available: enclosed or open auto transport. Open hauling involves transporting cars on carriers with no walls. Enclosed transport services use haulers with walls.
Open auto transport is the most common car transport method since it's less expensive than enclosed auto transport. Cars usually aren't damaged when shipped via this method.
Enclosed transport is ideal for wholesalers seeking auto transport for electric cars or auto transport for antique and vintage cars. That's because an enclosed hauler shields cars from the elements and road debris.
Other Auto Transport Cost Factors
Let's say you need to ship a car to a dealer within the next couple of days. Choose expedited auto transport. This service will cost you extra but will help you meet your deadlines and keep your customers happy.
Consider using door-to-door vehicle transport for a more efficient and safer shipping process. This option will let you pick a place to pick up or drop off a car, including your home address. You won't have to visit a nearby terminal to get or receive a vehicle.
Car Shipping Costs
How much will car shipping cost you? It depends on how far you need to transport a car.
You might need to ship a car between cities or counties less than 500 miles apart. This might cost around $600 on an open carrier or $900 on an enclosed carrier.
What if you need to ship a car to another state? Your cost might be around $1,100 for open transport or $1,500 for enclosed shipping to transport a car more than 500 miles away but less than 2,500 miles away.
Transporting your car more than 2,500 miles requires a cross-country car shipping service. This may cost around $1,300 with an open carrier and $1,800 with a closed carrier.
A car shipping calculator can help you determine your shipping costs. It's similar to a moving cost calculator used to solidify moving expenses. Your shipping calculator will prompt you for details like your car's size, pickup date, and shipping distance to give you an accurate cost estimate.
Help With Auto Transport
An auto wholesaler buys used or new vehicles from auctions and car dealerships. They then sell these vehicles to other auto dealerships for a profit. Working with an auto transport company can help you ship your cars to and from buyers and sellers conveniently and safely.
Nexus Auto Transport can help you ship a car to another state or city when doing wholesale deals. We are passionate about delivering quality and punctual service across the U.S. Request a car shipping quote today!
