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Why are auto wholesalers selling to the public?

I'm about to pull the tigger on getting my used car dealers license in Texas. I've read several times about the differences between wholesalers and retailers. I understand that wholesalers are only supposed to sell directly to other wholesalers or dealers and not to the public. To sell to the public a person needs a retail dealers license. The thing that I do not understand is why I see so many places called "wholesale auto world" or "wholesale direct" on every corner, but they seem to be selling directly to the public, selling on ebay, and in the autotrader/craigslist. How are they doing this? Are they actually a retail auto dealer with a confusing "wholesale" name? What's going on here? The reason I ask is because the state requirements for a wholesaler as so much easier than those for a retailer and it would be nice to only have to meet the wholesale requirements but still sell directly to the public. Thank you for your help!

Public Comments

1. Well if they are and they sell at retail prices what a joy that would be to the general public no more greedy as hell middle salesmen to have to deal with. Lets face it with the cost of fuel rising and insurances etc its hard enough to to be able to afford a new car anyway so if they are genuine wholesalers selling to the public then BRING IT ON Yahoo
2. Its all in the name, these dealers are probably retail dealers, but wholesale is a catchy word and should bring people into their dealership,
3. The difference is not in the name, but in the type of license that is held by the dealership. A wholesale license only allows you to sell to other dealers, a retail license allows sales to the public. You can name a retail lot anything you want. You can call it "Wholesale Dealer Auto Brokers of Anytown",and if you have a retail license you can sell to the public. The name is used to give the public the impression that they are buying a a wholesale price, even if they are not!! If you have a wholesale license you can not sell to the public, even if you name your dealership "Joe Smith Retail Autos" If, as a wholesale dealer, you want to sell an occasional car to the public, you should be able to find a retail dealer who will handle the transaction for you for a small fee. If you have any questions feel free to e mail me!
4. All they are doing is implying the cars are being sold at "wholesale prices". It just gets people on the lot. It is the same as any store putting a sign outside that says "SALE". It gets the attention of potential buyers.
5. It simply means they are selling cars at "wholesale" prices, or at least they want you to THINK they are.
6. It's not complicated. Calling a business "wholesale mattress outlet" does not make it a wholesaler. It's just a name. You have to put something on the sign. There's no such thing as a auto wholesaler. The only people who wholesale cars are retail car dealers, who wholesale them to each other.