Auction Cars/ flipping cars
- Thread starter tooklean
- Start date
Superior Shine
New member
I am signed up to get my dealers license next week. I will let you know what happens.
stluciedetail
New member
ive been doing it for a while. just find people selling cars cheep privately and go there and jew them down, clean it up , sell for more.
detaildave
New member
There is probably a better way to phrase that !!!
Clean Dean
Keep it clean !!!
Be carefull !!! I know, firsthand !!! If you are not carefull you can easily get burnt with used cars. I detail for one of the absolute best ebay seller (IMO), and I would recommend that you do your homework first.
Before all you people decide you are going to run out and get your dealer's license, you might want to check on your state's requirements.
The following is a condensed version of the requirements for the state of Iowa. It isn't quite as easy as many people think.
Motor Vehicle Dealer's License To Sell at Retail in Iowa
Bond:
A $50,000 surety bond must be filed with the DOT. This can be obtained through your insurance agent or an Iowa licensed bonding company.
Place of Business:
Establish a place of business separate from any other business that includes:
1. An office: With a telephone answered and listed in your dealership name where you maintain regular business hours and the public can contact you. Regular business hours are a minimum of 32 hours, Monday through Friday. Dealers selling motorcycles exclusively are not required to maintain regular business hours.
2. A repair facility: Minimum space to repair and recondition one or more motor vehicles with adequate access, equipment and tools for repairing and reconditioning motor vehicles sold by the dealer. The interior walls and ceiling shall separate the repair shop from any area occupied for salesroom, display area or offices by floor-to-ceiling walls and solid, full-length doors. Minimum space for repair to motorcycles and motorized bicycles shall be unobstructed rectangular area measuring no less than 10 feet by 15 feet. Minimum space for repair of other motor vehicles shall be an unobstructed rectangular area measuring no less than14 feet by 24 feet.
3. A display facility:
Used motor vehicle dealers: A suitable space in a building, at the principal place of business, meeting the requirements for a new motor vehicle dealer or an outside area, at the principal place of business with an all-weather surface which shall be reserved for the display of vehicles shall be 18 feet by 30 feet, exclusive of parking area. (All weather surface does not include grass or exposed soil.)
Zoning:
Written evidence, issued by the office responsible for the enforcement of zoning ordinances in the city, town or county where the place of business is located which states the place of business is in compliance with all applicable zoning provisions.
On-Site Inspection:
You will also need to contact the County Treasurer's Office in your area to obtain the name and telephone number of the motor vehicle enforcement investigator in your area to set up an appointment for an on-site inspection of your facilities.
Financial Responsibility:
It is your responsibility to ensure the dealership is in compliance and has in force financial liability coverage. Financial liability coverage shall be in the limits of not less than one hundred thousand dollars ($100,000) because of bodily injury to or death of one person, three hundred thousand dollars ($300,000) because of bodily injury or death of two or more persons in any one accident, and fifty thousand dollars ($50,000) because of injury to or destruction of property of others in any one accident.
I'm pretty sure that the city of Des Moines also requires a minimum of one acre of property for any new facility.
All that comes before you even start to buy and sell cars. (Which also is something that not everyone is good at.)
I have several friends in the business and $4,000 to $5,000 per month overhead is pretty typical. That's before they make a dime.
Good luck.
Charles
The following is a condensed version of the requirements for the state of Iowa. It isn't quite as easy as many people think.
Motor Vehicle Dealer's License To Sell at Retail in Iowa
Bond:
A $50,000 surety bond must be filed with the DOT. This can be obtained through your insurance agent or an Iowa licensed bonding company.
Place of Business:
Establish a place of business separate from any other business that includes:
1. An office: With a telephone answered and listed in your dealership name where you maintain regular business hours and the public can contact you. Regular business hours are a minimum of 32 hours, Monday through Friday. Dealers selling motorcycles exclusively are not required to maintain regular business hours.
2. A repair facility: Minimum space to repair and recondition one or more motor vehicles with adequate access, equipment and tools for repairing and reconditioning motor vehicles sold by the dealer. The interior walls and ceiling shall separate the repair shop from any area occupied for salesroom, display area or offices by floor-to-ceiling walls and solid, full-length doors. Minimum space for repair to motorcycles and motorized bicycles shall be unobstructed rectangular area measuring no less than 10 feet by 15 feet. Minimum space for repair of other motor vehicles shall be an unobstructed rectangular area measuring no less than14 feet by 24 feet.
3. A display facility:
Used motor vehicle dealers: A suitable space in a building, at the principal place of business, meeting the requirements for a new motor vehicle dealer or an outside area, at the principal place of business with an all-weather surface which shall be reserved for the display of vehicles shall be 18 feet by 30 feet, exclusive of parking area. (All weather surface does not include grass or exposed soil.)
Zoning:
Written evidence, issued by the office responsible for the enforcement of zoning ordinances in the city, town or county where the place of business is located which states the place of business is in compliance with all applicable zoning provisions.
On-Site Inspection:
You will also need to contact the County Treasurer's Office in your area to obtain the name and telephone number of the motor vehicle enforcement investigator in your area to set up an appointment for an on-site inspection of your facilities.
Financial Responsibility:
It is your responsibility to ensure the dealership is in compliance and has in force financial liability coverage. Financial liability coverage shall be in the limits of not less than one hundred thousand dollars ($100,000) because of bodily injury to or death of one person, three hundred thousand dollars ($300,000) because of bodily injury or death of two or more persons in any one accident, and fifty thousand dollars ($50,000) because of injury to or destruction of property of others in any one accident.
I'm pretty sure that the city of Des Moines also requires a minimum of one acre of property for any new facility.
All that comes before you even start to buy and sell cars. (Which also is something that not everyone is good at.)
I have several friends in the business and $4,000 to $5,000 per month overhead is pretty typical. That's before they make a dime.
Good luck.
Charles
Clean Dean
Keep it clean !!!
CharlesW,
On the money !!! I truly believe that "nothing in life is free". If buying and selling cars were that easy, I would be in it myself. Not to say that it cannot be a profitable venture, but DO YOUR HOMEWORK !!! AND GOOD LUCK !!!
On the money !!! I truly believe that "nothing in life is free". If buying and selling cars were that easy, I would be in it myself. Not to say that it cannot be a profitable venture, but DO YOUR HOMEWORK !!! AND GOOD LUCK !!!
Below Reality
Polisher of Shiny Things
I've purchased cars locally that were in need of some work and sold them for an ok profit.
Most are in need of a thorough detail, some need mechanical or body work, others full restoration.
I've got somewhat of an advantage in this area though, as I build hot rods and restore cars in my free time; so I generally can fix most issues myself, and still do the detailing!
Prices usually vary depending upon the car, and how much was needed.
I've sold an 86 Dodge Daytona for $1500.00 that I originally purchased for $650.
It needed a detail all around very badly, a tune up, fluids/filters changed, and a muffler.
I put about $300 into the car and about 30 hours of time.
$1500 - $950 = $550 Profit.
I've sold a 94 Ford Probe for $6500.00 that I purchased for $2400.00.
It needed a basic detail, as it was in pretty good shape. Also put a set of Polished Aluminum Eagle GT 5 Spoke Rims on the car for appearance reasons, and tinted the rear windows.
About $750 and 50 hours into the car.
$6500.00 - $3150.00 = $3350.00 Profit
It really depends on the situation on what you actually make.
My current Show Car, a 1983 Mercury Cougar SVT, that I built from the ground up, is appraised at a value of $35,000.00
I have about $11,000.00 and 3 years time into it.
This car I will never sell, despite the many offers I recieve every summer at the shows/cruises. - This one is mine.
I generally do about 3-4 cars per year now, which let's me get by without a dealers license.
Before doing something like this, I'd certainly make sure that your Car Fax Subscription is up to date, and either you or your mechanic are on your toes for the deals, and the not so deals.
Personally, I find this past time highly enjoyable, and even make a little money with it.
Come on though.....
It's really just about the cars.
Most are in need of a thorough detail, some need mechanical or body work, others full restoration.
I've got somewhat of an advantage in this area though, as I build hot rods and restore cars in my free time; so I generally can fix most issues myself, and still do the detailing!
Prices usually vary depending upon the car, and how much was needed.
I've sold an 86 Dodge Daytona for $1500.00 that I originally purchased for $650.
It needed a detail all around very badly, a tune up, fluids/filters changed, and a muffler.
I put about $300 into the car and about 30 hours of time.
$1500 - $950 = $550 Profit.
I've sold a 94 Ford Probe for $6500.00 that I purchased for $2400.00.
It needed a basic detail, as it was in pretty good shape. Also put a set of Polished Aluminum Eagle GT 5 Spoke Rims on the car for appearance reasons, and tinted the rear windows.
About $750 and 50 hours into the car.
$6500.00 - $3150.00 = $3350.00 Profit
It really depends on the situation on what you actually make.
My current Show Car, a 1983 Mercury Cougar SVT, that I built from the ground up, is appraised at a value of $35,000.00
I have about $11,000.00 and 3 years time into it.
This car I will never sell, despite the many offers I recieve every summer at the shows/cruises. - This one is mine.
I generally do about 3-4 cars per year now, which let's me get by without a dealers license.
Before doing something like this, I'd certainly make sure that your Car Fax Subscription is up to date, and either you or your mechanic are on your toes for the deals, and the not so deals.
Personally, I find this past time highly enjoyable, and even make a little money with it.
Come on though.....
It's really just about the cars.
dalmore
Chicks Dig Comb Overs
Below Reality said:...
My current Show Car, a 1983 Mercury Cougar SVT, that I built from the ground up, is appraised at a value of $35,000.00
Come on though.....
Where's the pics?
:showpics
e-klasse
It Never Rains in CA??
Nice post, Charles... great info. For state-specific info, I can tell you that CA allows up to 6 vehicles sold per year per individual without a dealer's license. Sell a 7th and Arnold or one of his minions will come knocking on your door... as a few of my buddies have found out!!
sellncars
New member
Hello Everyone,
To answer your question, yes it can done and with a great amount of profit, as long as you find the right vehicle. I being a dealer go to auction's every week and see what they do for wholesale price's, then i can come back to the shop and check Ebay. There are alot of vehicles on Ebay that are doing much less then at Auction prices. The problem there is how far is a small dealer willing to travel to purchase a car to make a few hunded dollars. Me. not to far. I have had very good luck buying at auction, sending out for paint work and detailing the hell out of it. Trucks, old muscle cars, German imports, sports cars is where the money is on Ebay.
Good luck,
Sellncars
To answer your question, yes it can done and with a great amount of profit, as long as you find the right vehicle. I being a dealer go to auction's every week and see what they do for wholesale price's, then i can come back to the shop and check Ebay. There are alot of vehicles on Ebay that are doing much less then at Auction prices. The problem there is how far is a small dealer willing to travel to purchase a car to make a few hunded dollars. Me. not to far. I have had very good luck buying at auction, sending out for paint work and detailing the hell out of it. Trucks, old muscle cars, German imports, sports cars is where the money is on Ebay.
Good luck,
Sellncars
sellncars
New member
:notpossib NY is 5 vehicles per year in your name. There are ways around that though. Keep the car with a open title in the person's name that you bought it from. Dont send the title in for a title only in your name.
Good Luck,
Sellncars
Good Luck,
Sellncars
e-klasse said:
Superior Shine
New member
My plan is to become a wholesale dealer. I can buy just about any car and make $200-$500 on it with a high quality detail. If we "flip" 4-5 cars a week I will be happy.
Completely different ballgame and completely different set of rules.Superior Shine said:
I have met, but am not really friends with, a wholesaler in this area that ran over two million dollars worth of vehicles through one local auction last year. And that auction isn't the only one he works.
He is really smart about buying and selling cars and can really B.S. with the used car managers at the new car dealerships. That right there is a major talent.
Good luck. It can be a fun business and you can make several bucks as well.
Charles
Flipping cars reminds me of a lot of other businesses that people jump into trying to make a quick buck. Trading stocks or commodities, trying to play poker are just two that come to mind. Personally, I don't have the $$ to RISK (yes risk) to do that. If you don't know what you are doing, you are going to get your *ss handed to you. Generally speaking, when you decide to do something for the money ONLY, you will lose. Don't kid yourself about "doing a really good detail" and making money off of just that. Most cars will have to be serviced somehow, even if very minor. Unless you can do it yourself, or you have a mechanic who you trust and is cheap, you are really going to be in for a giant wake up call. Plus, it is very time consuming. My uncle does it, but he's a good wrench, and he is retired. He has the time. Good luck to all that are trying this, but hopefully this will help some of you think of some of the things that you may not have. Just my lengthy .02.
A couple of things about the car sales business.
High mileage cars are not easy to sell.
Low mileage cars are easy to sell.
Everyone wants the low mileage car, but they all want to buy them for the high mileage price.
One of the larger new car dealers in our area has a saying, "Price sells cars."
It is so true. People do like cheap.
Good luck with the Riviera. IMO, you might be in it a little deep, but hopefully it works for you.
Charles
High mileage cars are not easy to sell.
Low mileage cars are easy to sell.
Everyone wants the low mileage car, but they all want to buy them for the high mileage price.
One of the larger new car dealers in our area has a saying, "Price sells cars."
It is so true. People do like cheap.
Good luck with the Riviera. IMO, you might be in it a little deep, but hopefully it works for you.
Charles
Schuma Detail
CEO of InstantShine
Superior Shine said:
I was actually considering this myself, becoming a kind of car-trader. My inspiration? I realised that after buying my own car wholesale from a new car dealership, I knew I could make a few dollars. Hey, I was happy to buy my 1991 Toyota Corolla for $1400 when its worth a good $3500 retail