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I don't understand why being a car dealer isn't a big barrier though. Sure it isn't extremely difficult, but that is a fair amount for anyone to do and pay for. Plus someone who is looking to buy a car one time for cheap at an auction wouldn't want to jump through all those hoops. What the OP is saying is basically akin to saying that wholesale restaurant supply stores are catering to a secret consortium of people. Dealer-only auctions are just the wholesale purchase of the car world. Most wholesale purchases in any industry require some sort of business license. Having a lot of experience with SF towing and registration there are things that make me think OP is leaving some stuff out but that’s another issue. Not sure what these other auctions are about that require a dealers license though, maybe some of them are private.
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