How To Make Money Buying And Selling Used Cars

Today, with the average consumer now spending up to $26,400+  for a new car,

consumers realize the importance on investing in lower priced used cars.

With millions of buyers entering the used vehicle market every year, a

wealth of opportunities exist for anyone looking for extra income, or a new

and lucrative full-time career.  They key to making a lot of money in this

business is to buy low, and sell at a huge profit.  This report will show

you how to get started down the road to riches as a used car dealers.

Operating your own used car business

The goal of many people is just to make a little extra income.  If you

consider $1,000 to $3,000 or more for a single sale in one month to be

"extra income" you could easily make that in your spare time without much

effort.

On the other hand, you may be one of those people who want to be their own

boss.  While it's true that the risks are often greater than if you just

worked for someone else, it's just as true that risks and rewards go hand

in hand.  If you're willing to take the plunge, the potential returns are

also greater.  If you have a bit of the adventuresome spirit and some

confidence in your own skills and abilities, operating your own used car

business may be the ideal way for you to make big, big money!

Advantages of owning your own business

The opportunity to express your own ideas and do things exactly as you want

are among the primary advantages of operating your own business.  The

challenge and excitement of running your own operation also ranks high on

the list.  Another big advantage is that you will receive all the profits

generated by your time and efforts.  The potential exists to develop a

part-time business into a full-time career that produces an income you

never thought possible.

Skills and abilities needed

The same type of personal skills that are necessary to successfully work

for someone else are also required to be successful in working for

yourself.  Personal skills involve being conscientious, dedicated,

determined and persistent.  Good human relation skills are also important.

There is also another type of skill that is necessary:  It involves the

ability to manage and organize your activities and possibly those of others

if you hire salespeople to work for you.  This skill should be taken very

seriously because it organizational ability that can make the difference

between huge success and total failure.

Finally, you will need technical skills.  These are the skills that include

the knowledge to perform activities involved in the used car business.  It

is this combination of technical, personal and management skills that will

make your operation successful.

Getting your used car business established

Whether you are operating your business on a part-time or full-time basis,

people will expect you to provide the type of service any consumer expects.

They will also associate the type of service they can expect with the

image you create for your business.  This image will be the impression you

make on others.

For example:  Will people perceive you as handling high-medium, or

low-priced vehicles?  Will your used cars appeal mostly to the rich, the

poor, or the middle class?  Do you sell something for everyone or do you

specialize? (Just pick-ups, just vans, etc.)

Any positive image is fine as long as you are consistent in everything yu

do within the scope of that image.  The image you create will largely set

the tone for all your business activities, including selection of a

business location, types of vehicles handled, prices charged, etc.

Selecting a location

If you are going to buy one or two cars at a time for resale on a part-time

basis, then working right from your home shouldn't pose a problem for you.

However, if you intend to eventually have a large, full-time business

operation, the most important ingredient in your success or failure could

be your location.  What constitutes a good location varies with the type of

business.  But in the used car business it means being highly visible in a

high traffic area, and being situated so that driving customers can get to

you.  In many cases, the location yo consider ideal may not be available,

or if it is, the cost may not be practical.  In that event, you will simply

have to select the next best location you can find and that is affordable.

Then you will have to male a strong advertising and promotion work to make

customers aware of who you are, and what you are selling, and where they

can find you.

Whether you select a location at your home or in a business district, you

must make certain you are operating within city and county zoning

ordinances.  Zoning ordinances are regulations specifying what each parcel

of land within a community can be used for.  In the location you decide on

is not zoned for the type of business you want to start, you can appeal to

the zoning commission to obtain a "zoning variance."  If approved, you

will be allowed to use the property for your business.

How to locate used car supplies

To get started in the "Buy low, Sell for Huge Profits" used car business,

you will have to locate suppliers.  In some cases you will be able to buy

directly from individual car owners.  At other times, you will go to

independent auction houses or attend U.S. Government Auction Sales where

you can often purchase vehicles for pennies on the dollar.

An independent auction offers vehicles of owners who want auctioneers to sell

by getting buyers who are at the auction house to bid against one another.  Generally, there is a minimum bid set.  The person who offers

the highest bid over the minimum set has the winning bid.  The seller,

however, also has the right to sell the vehicle below the minimum bid if he

chooses.  Incredible bargains can be found at independent auction houses.

Independent auction house sales take place in different countries, many on a

weekly schedule.  For additional information on auction house locations

refer to your telephone directory under "Auctions" or "Car Auctions,"

 Government Auctions

A wide variety of personal property either no longer needed, or seized by

the Federal Government is periodically placed on public sale.

The Department of Defense and the General Services Administration are the

principle government sales outlets for surplus property.  As items become

available for public sale. catalogs and other types of announcements are

distributed to people who have expressed an interest in bidding on the

types of property being offered.

Sales generally are on a competitive bid basis, with the property being sold

to the highest bidder.  Among the many thousands of items sold are

automobiles and other vehicles of every imaginable make and model.  In

fact, tens of thousands of vehicles are sold by the government at public

auctions throughout the country every year.

How can there be so many vehicles for sale?  Because the government is so

huge that it's difficult to even comprehend just how much property is

amassed for resale.  In fact, the government seizes, confiscates and

forecloses on property that results in many millions of pieces of property

every year, and that number continues to grow.

Incredibly, the government isn't a private business that is interested in

making a profit on the items it sells.  The government is mostly interested

in eliminating enormous stockpiles of seized and surplus vehicles and other

properties.  As a result, many thousands of vehicles are offered to the

public through government auctions at a fraction of their actual value.

This is where you can buy just about any model of vehicle you want at

super-huge savings and make gigantic resale profits.

How to Get on the Government's Vehicle Auction Mailing List

Both the Government Services Administration (GSA) and the Department of

Defense maintain mailing lists on persons interested in seized and surplus

property sales.  People on these lists are sent catalogs and other sales

announcements in advance of sales and give the opportunity to inspect the

vehicles and submit bids.

Each GSA regional office maintains a mailing list for sales of property

located in the geographical area it serves. 

How to Determine the Value of Used Vehicles

Whether you attend and auction or purchase a vehicle outright from a seller,

you must know what it is worth. 

Securing Licenses and Permits

City, county, state and/or federal licenses or permits are often required

before entering a particular business or service operation.  Often these

are issued solely as a fund-raising measure, and therefore, are easy to

obtain by submitting a fee.

On the other hand, licensing is also used as a method of regulating the

competency of those entering a particular field and to protect the public

from shady operators.  In some cases an exam is administered, and moral and

financial requirements may need to be met as well.

In the used-car business, most states require that you obtain a dealer's

license if you are buying and selling vehicles for the purpose of making a

profit.  However, you are not required to apply for a license if you only

make an isolated or occasional sale.  You are not considered to be in the

business of selling motor vehicles in that event.  "Isolated or occasional

sales" in many states means the sale, purchase, or lease of not more than

five motor vehicles in a 12-month period.

Once you began to sell more vehicles for profit that is allowed by your

state law on an annual basis, you should apply for a Dealer's License by

contacting your state department of public safety of department of motor

vehicle.

Check with your attorney or other city officials to determine what licenses

and permits are needed.  Simply start up a business without having the

proper authorizations can result in severe penalties, and you could be

forced to discontinue operations.

Many states and some cities and counties require that sales taxes be

collected.  The state sales tax permit is available from the State

Department of Revenue.  City and county permits are available from the tax

department in those jurisdictions.

Even though a certain amount of "red-tape" must be tolerated to obtain some

licenses and permits, this is usually a one-time occurrence. Then, it's

just a matter of submitting an annual renewal fee.