Dealer only auctions require car dealer licenses in all 50 states and are the main way dealers rotate excess inventory and stock their lots. Cars are sold at wholesale prices in dealer auctions and are generally higher quality cars than most other used cars.
The wholesale value is a measure of the dealer cost for the car and is the value a dealer would pay the manufacturer or a trade-in customer for the car. Wholesale prices are generally close to the Kelly Blue Book value according to KBB.com. More information on the process for acquiring a dealer license is available at DMV.org.