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 throughout the U.S.A., many on a
weekly schedule. For additional information on auction house locations
refer to your telephone directory under "Auctions" or "Car Auctions," write
to:
National Auto Research
P.O. Box 758
Gainsville, GA 30503
(404) 532-4111
(800) 554-1026 (Except Georgia)
N.A.D.A. Used Car Guide Co.
8400 Westpark Drive
McLean, VA 22102-9985
(703) 821-7193
(800) 544-6232
(800) 523-3110 (in Virginia)
U.S. 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 modelof 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. For general information about
sales conducted by GSA, or to be placed on the mailing list, write to any
of the following addresses.
The Department of Defense maintains a centralized mailing list for the
sales of its property located in the United States. The Defense Surplus
Bidders Control Office, Defense Logistics Service Center, Battle Creek,
Michigan 49016 maintains this list.
GSA Customer Service Bureaus
National Capital region
GSA Customer Service Bureau
7th and D Streets, SW
Washington, DC 20407
Serves: District of Columbia, nearby Maryland, Virginia.
Region 1
GSA Customer Service Bureau
Post Office & Courthouse
Boston, MA 02109
Serves: Connecticut, Maine, Massachusetts, New Hampshire, RHode Island,
Vermont.
Region 2
GSA Customer Service Bureau
26 Federal Plaza
New York, NY 10278
Serves: Ne Jersey, New York, Puerto Rico, Virgin Islands
Region 3
GSA Customer Service Bureau
Ninth and Markt Streets
Philadelphia, PA 19107
Serves: Delaware, Pennsylvania, Maryland, Virginia, West Virginia
Region 4
GSA Customer Service Bureau
75 Spring St., SW
Atlanta, GA 30303
Serves: Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina,
South Carolina, Tennessee
Region 5
GSA Customer Service Bureau
230 S. Dearborn St.
Chicago, IL 60604
Serves: Illinois, Michigan, Minnesota, Ohio, Wisconsin
Region 6
GSA Customer Service Bureau
1500 E. Bannister Road
Kansas City, MO 64131
Serves: Iowa, Kansas, Missouri, Nebraska
Region 7
GSA Customer Service Bureau
819 Taylor Street
Forth Worth, TX 76102
Serves: Arkansas, Louisiana, New Mexico, Oklahoma, Texas
Region 8
GSA Customer Service Bureau
Bldg. 42-Denver Federal Center
Denver, CO 80225
Serves: Colorado, Montana, North Dakota, South Dakota, Utah, Wyoming
Region 9
GSA Customer Service Bureau
525 Market Street
San Francisco, CA 94105
Serves: Samoa, Arizona, California, Guam, Hawaii, Nevada
Region 10
GSA Customer Services Bureau
Auburn, WA 98002
Serves: Alaska, Idaho, Oregon, Washington
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. The best way to determine a vehicle's
average market- trade-in or wholesale value, average loan or average retail
value is to subscribe to N.A.D.A. Official Used Car Guide, published
monthly by the National Automobile Dealer's Used Car Guide Co., 8400
Westpark Drive, McLean, VA 22102-9985. Write for current subscription
rates.
N.A.D.A. also publishes guides as follows: Official Older Used Car Guide
... Official Used Car Trade-In Guide ... Official Title & Registration Book
... Official Recreation Vehicle Guide ... Official
Motorcycle/Snowmobile/ATV Personal Watercraft Appraisal Guide ... Smaller
Boat Appraisal Guide ... Official Larger Boat Appraisal Guide ... Official
Mobile Home Appraisal Guide and Mobile Home Appraisal System.
A weekly used car market guide is also available from: National Auto
Research, P.O. Box 758, Gainsville, GA 30503. Write for current
subscription rates.
Regional Classifications
The average values listed in the N.A.D.A. Official Used Car Guide are based
upon reports of actual transactions by dealers and auction houses
throughout each area for which a guide is published. A used car guide-book
normally includes (1) Domestic Cars (2) Imported Cars and (3) Trucks.
Manufacturer's names are listed alphabetically.
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.
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