[LeeH]

See below in purple...

Originally Posted by sugarwood

Can someone tell me the various transaction cycles in this industry?

Who sells cars at auction? Licensed dealers - wholesale or retail
Who buys at auction? Licensed dealers - wholesale or retail.

Do dealers sell trade-ins at auction? Yes
Who buys at auction? Licensed dealers - wholesale or retail

What is a wholesaler? Licensed wholesale dealers can only sell to other licensed dealers - wholesale or retail. They cannot sell directly to the public.
Does he buy or sell at auction? Yes

Can someone working for a dealership sell his personal car at auction? Yes, but technically the transaction should be run through the business.
Who would buy it? Anyone at the auction.
How does the car end up back at some car lot for sale? Just like any other car - it's bought either directly by the retail dealer or by a wholesaler who then sells it to the retail dealer. It is fairly common for retail dealers to process retail transactions for wholesale dealers for a fee. In other words, a wholesale dealer can buy a car at auction, find a buyer, have the retail dealer process the sale. The retail dealer might receive a $500 fee to do this.