Quote:
Originally Posted by xenigo
Fantastic! I'm interested in chatting with you more regarding buying. The old ad technique sounds like a good place to start. I'll also have access to wholesale auctions, which I'm looking forward to trying out.
My primary motive for having a retail location is just to fulfill the requirements of the retail license... not to actually attract street traffic with "JOE'S AUTO BLOWOUT!" signs all over the place. The plan is to generate the traffic online... via Ebay and CL, and similar auto listing sites.
In California, the DMV limit without a license is 1 car per year... they want to regulate anything done "for profit".
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I didn't see this part of your post. I can tell you straight up, that the trick to selling via Auto Trader is to be the "cheapest". (was no ebay & CL when I was doing it)
It doesn't matter if your car is nicer has less miles or what ever, because what ever car you try to sell, gets compared to the cheapest one just like it. Every car I listed via auto trader sold the 1st day or two it got publish because I never listed a car in AT that I couldn't be the cheapest one listed.
Auto Trader is like a wish book for people trying to sell cars.. They "wish" it would really sell for that much.
Also auctions aren't all they are cracked up to be.. Sure you can get deals on stuff but remember every car you buy there, you are buying from another dealer and in most cases he's making a profit selling it there.
I used to buy cars out of the paper or just random ones I happen to see around town and actually in some cases sell them to other dealers. I bought a Toyota 4x4 one time out of a dude's yard for 400 bucks.. I sold it to another dealer for $1200 the same day.
One time I bought a Suzuki Samurai from right around the corner from my shop for $200. It had been sitting under a tree for 2 years, it looked like shit but started right up. I cleaned the thing up and it actually looked pretty good after I cleaned it and sold it the next day to a guy that lived across from my shop for 1,300 or 1,400 I forget which.
You don't make your profit selling the car you make it when you buy it and it's not always the nicer more expensive cars that make the most profit. It's also usually easier to sell a nice looking car that is shit vs a shitty looking car the runs great.