A wholesale car dealer is a car dealer that cannot sell vehicles to the general public, and can sell only to other car dealers or wholesale car dealer auctions. The wholesale car dealer may purchase from car dealer auctions and other car dealers but they can sell the vehicle only to other car dealers. If a wholesale car dealer wishes to sell to the general public they must perform a drafted sale.
There are also limitations on where they may park their vehicles during the time it is not sold.
Wholesale car dealers' basically are re-marketers of vehicles between dealers and generally turn a small profit on each transaction, but complete many transactions in any given time period. Vehicles normally dealt with are new car dealer trade ins, off-lease vehicles, a used car dealer's aged inventory, and sometimes just acting as a broker between two dealers and never touching the vehicle.
There is a good example of wholesale car dealing on a syndicated Saturday radio program called 'the real deal' hosted by John Clay Wolfe.
Source of the article : Wikipedia
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