buying used kars, detailing, and selling

E

Envious Eric

New member
basically flipping cars for profit....anyone here do it?



I was wondering what types of cars are the ticket right now? smaller suv's, small sedans, eco cars...or just in general, the one you can get the best deal on and turn the most profit?



also, I couldnt find info on it, but I heard you have to have a dealers license if you sell more than 6 cars a year...true? anywhere to get some info on that...





I was thinking about picking up a couple cars at auction prices and detailing them to a T and making them look brand new, then selling for profit. Obviously I wouldnt sell for less than I purchased by any means, but 500 bucks is 500 bucks, just like 3-4K is 3-4K!!!



thoughts?
 
I think the best deal is on a general type vehicle, like a Civic or a Gran Prix or Ranger.



I have a buddy that is flipping Civics' right now, but he is buying body damage and doing most of the work himself.



Trucks are hot sellers around here, but our economy is still strong.
 
Trucks are about the only thing selling right now. Tough time to be trying to sell cars. The market is flooded now with repo's and cars people want to get out of. But trucks are always needed for business and there is a huge number of people that have lost there jobs. They are now trying to start their own busines and the first thing they are looking for is a work vehicle.
 
The cheap $500-2000 cars are selling the best around here. My friend can't keep them on the lot more than a day or two. And yes, you have to have a license to do it. It's not like you can just walk down to a store and get one either...





It's also very hard to get your foot in the door at dealerships...which is where most car jockeys get there cars from. People trade in a car and if it's not something the new car dealer wants on their lot, they wholesale it out to the jockeys. Usually they have their go to guy for selling their cars too and won't give other buyers the time of day. I used to run cars for my buddy and there was a LOT of a$$ kissing involved in maintaining a good relationship with the dealerships. I often had to stop off and pick up lunch, or doughnuts for the whole staff!
 
I am currently working on it. I am originally from Mallorca, Spain and I have begun networking as a detailer when I visit my family throughout the year (as there may be a chance that I move back to be with my family....I've been here for too many years alone). Along with that, I've been toying with the idea of brokering vehicles. I've several friends that are dealers and we've been discussing the terms and conditions of the proposition, researching import/export laws, etc. The market on the islands is high and with my family's business and business contacts, it might be a slam dunk for me. I was just awestruck when my cousin told me 2 years ago he paid the equivalent of 75k for a Nissan Murano with all the trimmings.
 
I've thought about doing it before but haven't been able to come up with the money for the investment. I figured if I can't find anyone to pay me $25-$50 an hour, why not pay myself to do it?



I have absolutely no idea what number of cars you can sell per year in each state, but I'm sure all of the other stuff would confuse me too. Maybe you could use siblings and friends to help you out for a few bucks. Would I have to sign the title and then have it remade? Would I have to have the car insured for two weeks (and is that something thatI could do?)



One would think that there would be money in it. I remember seeing dealers tell customers that the can't use their car and would only pay $500 for it only to have me spend six hours detailing it and selling it for $4500 firm LOL.
 
thats actually the exact plan...buy low sell for profit...doesnt matter the amount, 200+ is 200+, but who am I kidding, i am shooting for 2K+ on each car...if not more
 
If you can buy right there is money to be made.



Having worked at small used car dealerships for over 10 years, now on my own and still detailing their vehicles, it is not unheard of making $5000 off a silk pigs ear.



One example from a couple weeks ago. Black '06 Chev crew cab 2500 diesel, was a work truck and will probably be sold as a work truck. Went through safety check no problem, my bill for reconditioning was over $400.



Their mark up is probably over $4000.
 
There is also the option of buying and selling under another dealers license until you can get your own. Obviously they are going to want a % of the profit for doing so, but it's a way to get going.





Rasky
 
i do that a lot here in Ohio, but i buy strictly AWD cars, since I live in the snow belt and we get hammered with snow!



Out of 12 car, i lost money on one! I think that's a good ratio...



Where your at in Cali...i dont know...it might be tough, theres already soooo many cars anyway!
 
I looked into it but quickly decided against it. Way too much effort for very little profit (at least in this area) the lots are just stocked full of cars that just don't move. Most corner lots are drying up and going out of business because they can't pay their notes because no one wants to buy jack crap right now. If you're going to do it though look for cars with unique qualities. People will always look at a "rare collector's item"
 
Where are you considering buying the vehicles from? Private owners with broke down cars that they don't want to fix (easy money here if you have mechanical knowledge), dealer only auctions or dealerships? It is not as always easy as cleaning the car up and selling it. You will have to consider repairs as many will need it and it would be best if you could do it yourself to save some cash.



As for the limit amount of vehicles you can sell, it all depends on the state. Check with the DMV. If you plan to sell more than that limit you will have to get a dealer license which after all said is done, costs a few thousand dollars.



Flipping cars can be easy, you just have to find the right cars that are selling in your area. In Orlando, I've had success with 4 cylinder imports from 1990 to 2000. Also I've had great success with 4x4 trucks, especially Jeeps and Tacomas. What happens many times with these vehicles, is that a Latin American will buy it in cash and then export it to their home country. And we export it for them and handle that thru the whole process. If you have a connection in another country, you could have great success in this side of the business, and I highly recommend it. I export to Latin America, while i know people who export to Russia. Just gotta know the right people on the other side.



Its a very good business if you know cars and people. Remember it is business tho, don't buy cars you want or like. Find out what sells in your area and you should do well.
 
The best way to go about it is start with Black Book or Blue in the US or research the selling prices. Then find a deal, whether at public auctions, estate sales or a car that is listed as OBO or must sell quick.



Haggle that the paint is poor, interior smells etc. You could also hit them up for business, too.



While a agree with Jake on the unique vehicle, it could bring up a couple problems. First they usually sell for more and it might decrease your buying base. You will make it unique with your detailing skill.



Do as much auto body and mechanical repair as possible yourself or find a discount.
 
I'd imagine word of mouth would play a big role too. I was recently talking to a coworker who mentioned she was selling a 1995 dodge neon for $300. My ears perked up right away.



Making a bit more money than I used to, I might actually give it a shot sometime. I've kicked it around for a while.
 
i have a couple friends and family in law enforcement and have a little hookup to get cars at police auctions for cheap cheap! I think I will try it out one time and see what happens...he bought a $750 commute carand only puts gas in it, no issues...plans on selling it for a few thousand at the end of the summer...
 
I'd suggest specializing in a certain marque. I was considering doing it as a hobby, and this helps in many ways.



1) You really know the cars you sell, so you can discuss them with prospective buyers

2) You know what to look for when buying them and have less of a chance of lemoning

3) If there is a part that breaks, you can stockpile parts for that type of car.

4) Your listings will be easier to make.



I'd say the best car to "flip" would be any single staged paint car that is slightly oxidized. Lots of pink early/mid 90's cars out there waiting for you to turn them red :)
 
You hit a sore spot.:angry I bought a "91"Dodge Spirit last sunday from a customer whose Mother just passed away for $800. The car was always garaged,61,000 original miles,New Goodyears,coldA/C. 3 " of service records.Very,Very clean car...

I sold the car on tuesday for $1,850($1,050 profit) to a Attorney....This afternoon I get a call from the Attorney stating her friend says she paid to much$$ and that she wants $1,000 refund or she will sue me.Well this caused me to come unglued:hairpull After about 5 minutes of arguing back-n-forth I replyed "I guess I'll see you in Court" and promptly hung up.

In Tennessee 6 cars a year is the limit, Which is about all I can find anyway.As far as where to find them,alot of tha time its just being in the right place at the right time. I myself get up early each morning(4:30) and check the local paper(classifieds) you can find "Grandma's Car"for sale at a very good price quite often...You gotta move fast.

I always try to find 4-bangers with A/C, good tires(or buy new tires) and keep the resale value around $2,000
 
Well, i've "flipped" quite a few cars over the years (30 or so). Mainly cargo vans

and cheap - sub 5k - daily drivers... I own a small body shop and do mechanical

repairs. Not actively seeking cars to flip, but there are gems every now and then.



Even for someone with mechanical experience, it can be quite difficult to make

a profit. I've known a few mechanics, body men, and painters that tried.

Most of them quit early, realizing the margins are too slim for the time spent.

The smarter ones are very patient, resourceful, mechanically skilled, and have

a decent understanding of the market(s). I have one buddy that's been at it

for a few years and i get parts for him at cost.



Be careful of auctions, they wind up there for a reason. You REALLY need to

know what to look for and you'll be competing with guys that do... I've

sent quite a few cars to the auctions and maybe one or two out a hundred

were good buys for someone.



OK, this can get long winded... In a nutshell, it's not worth it for most.

Just be on the look out for decent cars for sale from your customers.
 
We got our dealer license last month and so far sold two cars.



One we made $2200 and one yesterday we made $800.



The key is getting cars into low enough so that even if you need to put $500

in to it there's still a good profit.



The cars selling now are $1500-$4000 and made in Japan or korea. These

are hard to find as they sell like hotcakes !



US made cars aren't selling unless they are trucks !
 
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