What are the two basic types of auto auctions?

The correct choice identifies the two fundamental categories of auto auctions: wholesale and public.

Wholesale auctions typically involve the sale of vehicles directly from dealers to other dealers or to licensed auctions, often at lower prices than those seen in retail settings. This context allows dealers to quickly move inventory or acquire vehicles to meet customer needs without engaging the general public, which is typically familiar with different valuation and purchasing processes.

Public auctions, on the other hand, are open to all potential buyers, including individuals and other non-dealer participants. These auctions can often feature a broader range of vehicles, including those from private owners as well as repo or surplus vehicles from governmental or financial institutions. Public auctions provide an opportunity for everyday consumers to purchase vehicles, sometimes at below-market prices, depending on bidding.

Each type of auction serves different market needs and participants, thus emphasizing the dichotomy of wholesale versus public venues in the auto auction landscape.