As they visit various dealerships, some drivers may wonder how Colorado car dealers obtain such massive inventories of used vehicles. Car lots use many different techniques to acquire autos, but most of the merchandise comes from five major sources. Many dealers find that the bulk of their used vehicles are obtained through trade-ins.

Buyer Trades

Rather than keeping multiple cars, people often trade in their autos when they purchase newer models. About six out of 10 used vehicles at dealerships were traded in, according to Crain Communications. Motorists increasingly consider this a vital part of any car-buying transaction, so dealers are accepting more trade-ins than they did in the past.
Exclusive Auctions

Dealerships buy about one-quarter of their inventories at auction. Access to this type of sale is normally limited to car dealers and may be restricted by brand. They usually bid on autos that were leased or repossessed in the past. Some bidders may travel very long distances. Colorado car dealers occasionally buy all-wheel drive vehicles at Texas auctions, according to Used Car News.

Rental Cars

Auto rental agencies know that many drivers are reluctant to rent older autos, so they eventually sell some of their inventory to dealerships. They often accomplish this by holding auctions and allowing dealer representatives to bid on the cars, according to Bankrate. Most of these autos are sedans, hatchbacks or SUVs.

Fleet Vehicles

Major organizations frequently purchase cars for their employees to drive. They include various businesses, nonprofits and government agencies. Such vehicles range from compact sedans to spacious cargo vans. After using them for several years, these entities let dealerships buy the autos. They're usually well-maintained but may have undergone heavier use than personal cars.

Direct Buying

Dealers prefer trade-ins because these transactions ensure that they sell autos as they purchase new inventory. Nonetheless, some car lots in Colorado remain willing to buy cars from drivers who don't intend on acquiring vehicles. A difference between trade-ins and direct buying is that they're normally more selective when deciding whether or not to separately purchase an auto.

After buying used cars, most dealerships won't simply place them on the lot. They usually perform repairs and conduct routine maintenance to ensure that the autos will function reliably. Employees also clean the interiors and exteriors of the cars. After vehicles are ready to sell, the sales staff takes photos and applies stickers or tags to advertise current prices.