Many times dealerships get trade-ins that aren’t worth their time or effort to fix up and sell. Older cars, higher mileage, damaged, rusted. When they decide not to do anything with them they get put on the wholesale line where other dealers sometimes buy from, or they get sent to an auction.
As an example of the condition of some of these cars, this is a Mazda MPV. It had lots of rust all over the place, and here in the middle of the tailgate it had apparently gotten so bad that they actually covered over part of it with a new piece of metal. The patch job was actually a little bit impressive, with some pretty precise bends to match the shape of the tailgate, with a lip around the bottom to make it secure, and then the whole thing was painted to match. Unfortunately, in this case, creativity does not add value.
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-Dan