Car buying and selling question to people in the field?
Ok here goes, i know a person that has a dealer, and he goes the big car auctions. he asked me if i would be interested in buying and selling cars. He said that i could use his code to buy the cars and give him a 200-300 dollars commission on the cars that i buy and sell. Do you guys think that this is a good idea? would i make money by doing this? And how can i obtain a dealers license, would i have to have a property and open a dealer of some sort, to get that license in VA?
you will make money, given that you invest between 1500-3000 per car you buy , that way the turnout will be good , and if you do, stick to the top sellers , like honda ,toyota , nissan smaller cars , they sell alot faster , and you can get more for them , ex if you buy a 97 corrolla for say 2k, you can sell that cat for about 3500, so 2k plus 200 ur invesment is 2200, and the rest is profit
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you will make money, given that you invest between 1500-3000 per car you buy , that way the turnout will be good , and if you do, stick to the top sellers , like honda ,toyota , nissan smaller cars , they sell alot faster , and you can get more for them , ex if you buy a 97 corrolla for say 2k, you can sell that cat for about 3500, so 2k plus 200 ur invesment is 2200, and the rest is profit
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The auction is not always a bargain. Believe it or not some dealers will “patch up” a car and run it through the ring to dump. Also, the auctioneer is paid to get the max out of every car on the block so he might “bump” your bid. Think about this, if the car did not have problems, why would they not retain it themselves? I’ve been in the business for 30 years and I still rely on the pros that do it for a living. You would be better off to hire one to buy for you with the money your “friend” wants as his fee. Trust me you can easily get your pants taken off at the auction. Remember, at the auction, you are considered to be a big boy. There is no, oops I really did not want that later. You bid, you buy. I suggest that you find a mentor that will school you on the business. It’s brutal. BTW, did you know that the value of a used car drops weekly? Follow the books and see if you had bought today, then look at the same car value in 30 days. If it were so easy everyone in the business would be getting rich instead of going broke.
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