Buying And Selling Used Vehicles

02 LTZ

02 LTZ

New member
Hey there,

I was just doing some thinking while I was detailing and...I thought that I might be able to make some dollars by buying used vehicles cheap...detailing them to make them look new...then putting them up for sale.

What do you guys think...would something like that work...could you make some major money doing that?

Here is my thinking...why not use our skills that we provide to everyone else to help them sell their car...and use it to our advantage.

Everyone says that a clean, detailed vehicle is worth at least $1000 - $2000 more than a dirty one...so why not take a chance and try it at least once.

I live beside a major 4 lane highway, so I wouldn't have any trouble putting a vehicle out where people could see it.

Let me know what you guys think.
:wait :wait
 
I do this is but with wholesale and repo auctions. I first started last year and didnt really know what I was doing. Bought beaters and had a hard time selling them. This year I am buying better cars and limiting it to newer model imports. They have a high resale value and people are crazy for them in the DC-area. So far this year I have bought 3 and am about to sell the third one this weekend. Its definetly worth it if you dont mind taking the time to find some good deals and are able to fix them up. List the car for $1000 under CarMax price and you have people calling you left and right.

Edit: Some auctions are dealer-only so you gotta have a buddy with a dealer liscense. It makes it harder to buy a car but this is where you make the most money. Bought a '03 Altima with 14k miles for $14k and sold for $17k. Minus $250 dealer charged me to buy it and maybe $250 worth of stuff to clean it up appearence and mechanically. $2500 profit.
 
Last edited:
I just started getting the hang of this lately. Ive been getting "investments" from relatives that are wealthier than I am that have seen me make money on beaters so now I am buying newer cars. Still going to school so this is a part-time thing, along with detailing, along with being a Reservist, and along with trying to enjoy the fruits (ladies:) ) of college. Its time-consuming. Sometimes I'll drive 4 hours round-trip and not find anything. And sometimes I have a car on-hand that I cant sell. Had a 01 Camry LE before the Altima that it took 5 weeks to sell. Bought for $11, list for $13.5 ended up selling for $12.5. Maybe if I was done with school and had 9-5 job I could do this a lot and perhaps double my salary. But I try to maximize profit instead of volume cause I cant go every week and sometimes cars (01 Camry) dont sell.
 
this can become a major headache depending on your states used car laws....do you warranty your cars ottoman? one unhappy customer or lemon could return 100x the aggrivation and hastles than the money made...."been there, done that" ...at a certain point, some states say you are a dealer for selling too many cars privately...then you have to deal with the state DMV:nono and insurance and it really does take a tremendous amount of time and effort to do it right and not get stuck with a vehicle too. Yes the $$$ can be very inviting, but make sure you understand the down side too:D good luck
 
:yeah
Another thing to consider is the income taxes that probably need to be paid on the profits.
Buying and selling cars is a business and with running a business comes taxes that need to be paid. I don't believe in doing business under the table and this one is an easy one for the government to track.
Just My .02
 
I claim the profit at the extra income section on my taxes. Believe me, as a Marine Reservist, I also dont believe in doing business under the table. No point in cheating Uncle Sam. We are lucky to be living in this country and I dont mind paying whats due.

As for providing a warranty to the cars, I do not own an used car dealership so its not like the cars are being bought from CarMax or anything. Luckily, I have not had someone call back and threaten to beat me up or anything. This year, I will try to only sell cars that still have some of the factory warranty left to avoid this problem. I certainly am not trying to rip people off and sell them cars that will break down on the road. Its just that ata these auctions, all the cars are sold for under the book value. Its how the dealers make money and I just buy and sell a couple to help pay the expenses.

Thanks for the advice guys and let me know if there is something you are looking for! ( j/k :) )
 
A lot would depend on the laws in your state.
In Iowa, a dealer is required to have minimum display area before he can even get a dealer license. This was done several years back to discourage the practice of curbing cars, which is basically what I think you are planning to do.
Lots of the people that did this would let the prospective buyer believe that the car was their own or a friends personal vehicle. IMO, it was a practice that was best stopped.
A couple of used car lots in Des Moines are owned by friends of mine. They make a decent/good living, but like any business, it takes a lot of effort to be successful. It isn't as easy as it sometimes looks. It's great that you have had good luck so far, but there will be more that won't sell as quickly as you would like. If you have the finances and the stomach for it, good luck.

Charles
 
You must log in or register to reply here.
Back
Top