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Yes, that’s what I’m saying. Auctioning off impounded cars is unfair in general, but there isn’t some secret cabal that has access. SF Auto Return (the company that contracts SFs impound yard) holds public auctions. And even if they were dealer-only, anybody can get a dealers license by passing a test and getting bonded. It’s not some secret group of people. Go check the SF Auto return site for yourself, their sales are public. Also the whole car dealership industry is basically a consortium that bars the public from purchasing directly from the manufacturer. It certainly serves to dispel what the OP said, I'm too lazy to look for real confirming proof though.
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