What are the two basic types of auto auctions?

The distinction between wholesale and public auctions is fundamental in the auction industry. Wholesale auctions typically occur among dealers, allowing them to buy and sell vehicles in bulk at lower prices, which are not accessible to the general public. These auctions often cater to licensed businesses, making them an important venue for dealers looking to stock their inventories economically.

In contrast, public auctions are open to everyone, including the general public. These auctions provide an opportunity for individual buyers to purchase vehicles directly, often at competitive prices. Public auctions can include used cars from various sources, and they aim to attract a wide range of bidders.

Understanding these two types of auctions is crucial for anyone involved in the auction business, as they require different strategies, target different audiences, and adhere to unique operational protocols. Recognizing the characteristics of both can help auctioneers market effectively and choose the right type of auction for their specific needs.