Backbreaker, I want to open a store.

[backbreaker]

that is a business.. I know a guy that does that and make a hell of a living doing it, doesn't even bother fixing them. Just buys them from dumb people around down, turns around and sells them to ebay

or even better.. go to liquidation.com and buy them in bulk, and resale them one by one.

liquidation.com is a must for any retail person BTW, great great site

 

[backbreaker]

WHILE we are talking about great businesses.. one that is soo untapped it's unreal, is doing the same thing for cars.

I found that out by accident. My "patch in car", the car I got right when we got a little successful, just so I can have something to get around in, but nothing too expensive, was a 1993 Lexus SC 3000. I paid I believe 2900 for it, the guy had just bought a new car and didn't have a use for it anymore.

When I got it, the only thing wrong with it was it needed some freeon and some power steering fluid. I replaced the CV joint, myself, for I think 110 dollars just for good measure. So all in all you are looking at like 3200 dollars for the car.

About 9 months later, when it was time for me to upgrade, I put it in the paper, and sold it for 5200K, with a CD player that needed replacing!.. they basically just paid for it because it was a lexus. Even had 180k miles on it. I mean, it was clean as hell and has no problems with it, but I was suprised I got that much for it. I was going to sell it for 3k, and my business partner convinced me to put in in the paper for 5500 saying "what's the worse that can happen?".. And the guy though he was really doing something talking me down 300 dollars.

I bought my Ex GF a car when we were together. She basically lived with me, and I didn't like her driving my car, because well.. it's my car, so I got her a 1996 camary, just to get around in .

When she split, or when I booted her, I sold the car the next week and made about 700 off of what I originally paid for it, and I didn't put any work in it.

There was a guy at my old apartment complex that did that for a living, and he was my age driving a Range Rover, so he was doing pretty well for himself

 

[Bible_Belt]

Dell bought Alienware:
http://australianit.news.com.au/articles/0,7204,18576311^15317^^nbv^,00.html

 

[backbreaker]

damn I have been out of the game that long..

Alienware's who thing was to eventually get bought out anyway so it doesn't suprise me... but damn

 

[iqqi]

I don't mind anyone hijacking my thread, as long as the topic stays on opening a store/starting a business, I figure all those questions will be along the same lines. The questions you asked are ones I have as well, so keep it all here! Anyone else with the same ideas and questions, ask here!

Thanks so far for the advice. I don't have time yet to post anything substantial, just wanted to throw that in.

 

[backbreaker]

I am waiting on you to ask a question specific question.

 

[MetalFortress]

WHILE we are talking about great businesses.. one that is soo untapped it's unreal, is doing the same thing for cars.

I found that out by accident. My "patch in car", the car I got right when we got a little successful, just so I can have something to get around in, but nothing too expensive, was a 1993 Lexus SC 3000. I paid I believe 2900 for it, the guy had just bought a new car and didn't have a use for it anymore.

When I got it, the only thing wrong with it was it needed some freeon and some power steering fluid. I replaced the CV joint, myself, for I think 110 dollars just for good measure. So all in all you are looking at like 3200 dollars for the car.

About 9 months later, when it was time for me to upgrade, I put it in the paper, and sold it for 5200K, with a CD player that needed replacing!.. they basically just paid for it because it was a lexus. Even had 180k miles on it. I mean, it was clean as hell and has no problems with it, but I was suprised I got that much for it. I was going to sell it for 3k, and my business partner convinced me to put in in the paper for 5500 saying "what's the worse that can happen?".. And the guy though he was really doing something talking me down 300 dollars.

I bought my Ex GF a car when we were together. She basically lived with me, and I didn't like her driving my car, because well.. it's my car, so I got her a 1996 camary, just to get around in .

When she split, or when I booted her, I sold the car the next week and made about 700 off of what I originally paid for it, and I didn't put any work in it.

There was a guy at my old apartment complex that did that for a living, and he was my age driving a Range Rover, so he was doing pretty well for himself

That car reselling is a freakin' good idea. I'd say "I'll remember you when I'm rich off this" but hell, you're rich already. I've been looking for a way to put my car knowledge and sales savvy to use in starting my own business (rather than standing around at a dealership 80 hours a day)... thanks for helping me put 2+2 together.

More rep to you once I can rep you again.

 

[backbreaker]

the key is to find people who are selling their cars, but are either desperate for cash or don't care so much about the money.

 

[undesputable]

the car reselling buisness is really good. A simple wash and wax will probably make a $2000 car sell for $3500. But isnt there a limit in the number of cars you can sell in a year before being taxed or something like that?

 

[backbreaker]

Don't know... I never took it seriously enough to think about doing it for a business.. Even if you are getting taxes.. hell if I am making 1500 per sale and I am selling 2/3 cars a week, I think i would be able to manage

 

[MetalFortress]

the key is to find people who are selling their cars, but are either desperate for cash or don't care so much about the money.

Very true... also those who COULD be selling it for much more but just aren't cuz they have no clue what the car is really worth.

 

[diplomatic_lies]

Whats the car re-selling business like? Dont most car-ignorant people (like me) buy their cars from auction lots or dealerships? How does an individual reseller make a profit like that?

 

[djbr]

and?

The point is, not everyone knows or wants to know how to fix laptops, yet laptops are extremely popular.. I mean, people are still buying 500MHz laptops, but when is the last time you seen anyone with a 500MHz desktop that wasn't hidden in someones hosue like a red headed stepchild?

IN MY HOUSE GODDAMNIT!

hehehe

 

[STR8UP]

As a person who is "somewhat" in the car business myself (one of my close business associates is a dealer, I even have an auction card) I will tell you that the car business can indeed be profitable, but it isn't without it's pitfalls.

Be VERY careful about trying to buy and resell cars that are out of warranty. You never know what you are getting yourself into sometimes. Also, most states have laws against buying and selling cars without a dealers license. I believe here you are technically allowed to sell 2 per year before you are considered a dealer.

Getting a dealer license can be expensive. In FL you have to have a physical office, which means you have to buy or pay rent on commercial property. Insurance is OUTRAGEOUS. I don't know exactly what he pays, but I know it isn't cheap. Thank our lawsuit happy society for that one.

Over all I would say it's a good business, but keep in mind that even with an auction card you can't usually buy a car for $15,000 and turn around and sell it for $20,000. The profit margins aren't as good as you might think. Lots of times you can even make good money buying from a private seller and selling to either a retail customer or even running it through the auction block, believe it or not.

 

[LowPlainsDrifter]

Possible source of cars to resell???

Retirement areas where a lot of old people are dying - relatives might be most inclined just to let a car go a little cheaper rather than deal with it amongst all of the other stuff (more easily divisible property, the funeral arrangements).

 

[djbr]

Over all I would say it's a good business, but keep in mind that even with an auction card you can't usually buy a car for $15,000 and turn around and sell it for $20,000. The profit margins aren't as good as you might think. Lots of times you can even make good money buying from a private seller and selling to either a retail customer or even running it through the auction block, believe it or not.

In Brazil you make fast bucks on this.

You buy a car on a larger city, especially on the 1-4 year old range. You go to the nearest small city and put it on any car reseller. They operate on comission, but in general, the difference of value between cities makes more than enough money to pay the comission AND get some fresh, easy cash.

 

[SELF-MASTERY]

Im late to the party......... I know car salesman that buy trade-ins from customers for the low and turn around and sell them. Im not sure how the dealershio feels about that, but a buddy of mine bought a customers trade in for the low and turned it around in one week for a profit of 600....

I've always wanted a buy here pay here kind of dealership, but it seems too risky .

 

[backbreaker]

funny you mention it, but a guy that lives on the same floor as I do is a car salesman, and he broke down how car lots, espically the bigger ones, literarly make a killing on used cars.
You take a trade in on a car.. usually you don't give him what the value of it is anyway. You take the car around to YOUR tech bay, and let them fix it, and charge it at FULL retail, which puts money in your sevice department.

You then sell the car, let's say at a 1500 markup, and we haven't even made it to the F&I guy yet.. and we haven't even talked about when YOU need to get the car serviced.

 

[Rovalier]

backbreaker and STR8UP I love you guys

Any recommended books on business, investments, real estate, stocks etc..? Looking to buy or borrow a bunch.

 

[newbie81]

Rich dad's advisors!