The cars sold to the public are Repo cars
Nothing the dealer's after they buy the car they put a higher price on them to make more money that's all u could go with someone u might know with dealer license and buy your own car from the auction which will be more cheaper than going to the dealer after he get it very very cheaper
Some are repos some are from dealers just gotta check the car over real good as its coming through the lanes could be something little you have to fix to nothing or something major
The answer simply is there are too many personal buyers and a public auction which increases the price where in a dealer auction the dealers know they don't want to pay too much money so they don't try to outbid each other too much
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