Auto Wholesalers Direct

Why are auto wholesalers selling to the public?

I’m about to pull the tigger on getting my used car dealers license in Texas. I’ve read several times about the differences between wholesalers and retailers. I understand that wholesalers are only supposed to sell directly to other wholesalers or dealers and not to the public. To sell to the public a person needs a retail dealers license.

The thing that I do not understand is why I see so many places called “wholesale auto world” or “wholesale direct” on every corner, but they seem to be selling directly to the public, selling on ebay, and in the autotrader/craigslist. How are they doing this? Are they actually a retail auto dealer with a confusing “wholesale” name?
What’s going on here? The reason I ask is because the state requirements for a wholesaler as so much easier than those for a retailer and it would be nice to only have to meet the wholesale requirements but still sell directly to the public.

Thank you for your help!

The difference is not in the name, but in the type of license that is held by the dealership. A wholesale license only allows you to sell to other dealers, a retail license allows sales to the public.

You can name a retail lot anything you want. You can call it “Wholesale Dealer Auto Brokers of Anytown”,and if you have a retail license you can sell to the public. The name is used to give the public the impression that they are buying a a wholesale price, even if they are not!!

If you have a wholesale license you can not sell to the public, even if you name your dealership “Joe Smith Retail Autos”

If, as a wholesale dealer, you want to sell an occasional car to the public, you should be able to find a retail dealer who will handle the transaction for you for a small fee.

If you have any questions feel free to e mail me!

Auto Wholesale Direct – Because Everyone Deserves A Great Car!

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