Obtaining a dealer license to buy used Teslas?

[Pandalus]

So this forum has been filled with a litany of disastrous stories about buying used Teslas through their customer-facing website. As we all know, used car sales for Tesla are now handled through Manheim, which is why there are so many problems getting good pictures and stuff.

But I'm wondering - what if we cut out the middleman and bought from Manheim directly? I went to www.manheim.ca and it looks like you need a dealer license. I'm currently investigating what would be involved in getting such a license (looks like there's a fee and a bond requirement) because I'd like to get an account and see what's in THEIR database for vehicles - and whether buying them at the auctions that are set up for dealerships could yield some potentially significant savings versus trying to purchase from Tesla.

Does anyone have experience doing anything like this? Is it worth it?

 

[armanslr]

I have a dealer license and looked up Manheim mmr prices on the car I wanted and the difference vs CPO wasn’t worth it to me.

 

[AMPd]

I recently requested photos of 2 cpo cars and received over 10 photos of each car within an hour
Not sure why others are having issues.

I used the “request photos” feature when looking at the cpo online

 

[HankLloydRight]

But I'm wondering - what if we cut out the middleman and bought from Manheim directly?

That's not how it's working, AFAIK. Tesla is just using Manheim as their storage depots and fulfillment centers.. Menheim will wash (hopefully) and photograph the cars, and allow people to pick them up or arrange shipping, but I do not believe that Manheim is also putting these cars into their regular auctions (or at least only the really crappy ones Tesla doesn't want to sell). So you can't just go to an Manheim auction and find and buy the same cars that Tesla is listing as Used for sale. You still have to buy them from Tesla.

 

[r0xx0r]

I think you were lucky or you requested for cars that sit in their CPO site for a long time.

I was scanning their inventory quite aggressively, when I saw a good deal come up, requested a photo and they never replied me. My thought is someone just bought it without seeing any photos.

I recently requested photos of 2 cpo cars and received over 10 photos of each car within an hour
Not sure why others are having issues.

I used the “request photos” feature when looking at the cpo online

 

[texas993]

To the OP's question. It looks like you are writing from outside of the US. Getting a dealer's license in the US is state dependent. In TX, it requires a location with several parking spaces, a physical office, daily posted hours, staff to cover the posted hours, and bonds, etc. So it isn't easy to simply become a dealer. I've tried as I flip cars quite a bit and restore a few (not Teslas).

 

[TonyT]

You can work with a broker, I hear some "dealers" will purchase for you with their license for a small fee. I have never purchased an auction car before though.

 

[armanslr]

Getting a dealer license in California is a process, not something that you would just get to purchase yourself a car every few years.

Some dealers I know of do charge fees to retail buyers and will take them with them to Manheim to purchase a car for them. This isn't allowed though, but I see it happening all the time. I saw some Tesla's sold but like I said, the MMR was not low enough to justify buying used vs cpo for me.

 

[HankLloydRight]

I've bought three used cars at auction, through a licensed dealer. I'd give them the specs I was looking for (year, colors, model, options) and as soon as one came up, they'd go to the auction, inspect the car for me, and give me guidance on what to bid (i.e. max bid) based on the market and the condition of the car. Yes, they charge a fee, but the cost of the car at auction+fee was always well below the market price of the cars at the time.

But like I said, becoming a dealer in order to gain access to Manheim won't help you here with cars Tesla is selling, as they aren't in the actual auctions.

 

[Olle]

Sounds compelling if there is a big price difference but a friend from a dealer family told me that they swap all good parts that are possible to dismantle before sending the cars to auction, replacing them with e.g. bald tires, next to dead 12V and so on, sometimes even swapping engine for a less desirable one. For you dealers in the thread here, would you say this is common?

 

[armanslr]

Sounds compelling if there is a big price difference but a friend from a dealer family told me that they swap all good parts that are possible to dismantle before sending the cars to auction, replacing them with e.g. bald tires, next to dead 12V and so on, sometimes even swapping engine for a less desirable one. For you dealers in the thread here, would you say this is common?

Everything is case by case, but lets just say I've seen everything, including things you can't imagine, going on at dealer auctions, having said that, I've bought thousands of great cars through the block as well!

 

[Lloyd]

I have a Dealer License. Not easy. 1 full day class, Test with DMV, proof of storefront and approval of zoning, Insurance, Online licensing and plating approval, report of sale documents, tax collection, business license, live scan fingerprinting, Dealer Bond 20K, AND ongoing reporting of all of the above.

 

[rooter]

There's always a loophole. Think like a hacker.

Schneier says that when he was a kid he got an ant farm as a gift. You get the see-through habitat and earth media, but you have to send off for the tube of ants. Most ppl would say, "Cool, I can get a tube of ants in the mail." Schneier thought, "Cool, I can send a tube of ants to anyone I want!"

(Hint: I got into Manheim with a -Salvage- Vehicle Dealer's License. Only a fee of under a $hundred/year is required)