Used cars at a new car dealership?

some do, not all. but dealers do it collectively. They have agreements with local dealers (say toyota). share inventory. depends on the demand from the public and how fast they move the trade ins. Usually they sell the trade ins to other companies. like if u trade a subaru to a toyota dealer.

Most new car dealerships make FAR more money on used cars than new cars. In fact, they make more in every department compared to new cars. Parts, service & used cars all generally make the dealer the most money.

Dealers sell their trade ins, they buy from other dealers and from auctions too.

Their goal is to make money.

And making $1700 on a used car is better than making $600 on a new one.

Just because a car was bought or sold at auction doesn't make it a bad car.

It could have been traded in at some rural dealer who had it on his lot for 90 days and couldn't sell it. So he turns it into cash at auction.

Lots of very good cars sell at auction and its a good deal for both buyer & seller.

All that being said most dealers keep & try to retail their nicest units and wholesale the clunkers. But if they want to maintain say 30-50 used cars, they may not be able to do that with only trade ins. Thus buying them elsewhere comes into play.

Generally, the "name" on the dealers store pays the most at auction. That is, a honda dealer will pay the most for a nice used honda. Ditto for Toyota & Nissan. Again, assuming they are in the market for cars.

From my experience it's just the opposite. They generally keep the good trade ins and wholesale the questionable or less desirable cars. Auction cars are almost exclusively bought by independent dealers capable of repairing them or body shops and other repair facilities. Auction cars generally are in poor condition and new car dealers do not want to spend the time or money to make them easy to sell.

Yes they do, I see buyers from new car dealers bidding on auction cars all the time. Especially Carmax. If you have a car dealer friend who has access to Manheim.com have them show you a live auction, it shows the winning bidders name and you can see what they bought and how much they paid.

It all depends, but most dealerships take all kinds of used vehicles, whether from trade-ins or auctions