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Has anyone on the board started a used car business?
Posted on 3/28/18 at 9:57 pm
Posted on 3/28/18 at 9:57 pm
Looking for some insight and if there is any money to be made?
Recently purchased a high traffic piece of property in Mandeville for outdoor storage. Thinking of ways to maybe add some additional income to the investment.
Thought about putting a few cars on it???
Recently purchased a high traffic piece of property in Mandeville for outdoor storage. Thinking of ways to maybe add some additional income to the investment.
Thought about putting a few cars on it???
This post was edited on 3/28/18 at 9:59 pm
6
Posted on 3/28/18 at 10:08 pm to mandevilletiger34
Don’t you need an auction license?
Posted on 3/28/18 at 10:08 pm to mandevilletiger34
I thought was a good idea, Mandeville is better market (BR is just wayy too much competition). Did you buy to strictly to make used car lot or had/have other ideas?
Posted on 3/28/18 at 10:13 pm to CoachB
I bought as an outdoor storage yard already filled with customers!
Just happened to pass by manheim in slidell today and thought if I got a license, I could put a few cars at a time near the street and try and sell them in some dead space.
Just happened to pass by manheim in slidell today and thought if I got a license, I could put a few cars at a time near the street and try and sell them in some dead space.
Posted on 3/29/18 at 4:50 am to mandevilletiger34
I don’t but I have friends that do. Very high margin business models. The best run operation I’ve seen is-buy cars in the 3k to 4K range at auction, keep a mechanic on payroll, fix them up, sell them for 10k. Finance no more than 24 months, usually at 18-20 percent. 28 percent is State max in GA. Put a tracker on the vehicle and be able to kill it when you haven’t gotten your payment, go repo it and sell it again for 10k at 20%.
Posted on 3/29/18 at 6:17 am to AugustaTiger
quote:That's 500/month. The target people for that kind of deals only focuses on monthly payment, and I'm surprised they agree to pay 500/month. They may not recognize that 18-20% is steep, but they would definitely say 500 is high. I'm surprised that's a successful model
fix them up, sell them for 10k. Finance no more than 24 months, usually at 18-20 percent.
Posted on 3/29/18 at 7:39 am to castorinho
quote:
I'm surprised they agree to pay 500/month.
It is pitched as low as $125/week
Plus, these dealerships are the only places willing to extend any credit
The money is made by the dealership on repo the car and then resale. If a dealership can get 3-4 payments then start it all over, they're making money
To be in that business, you need to have some moral flexibility.
This post was edited on 3/29/18 at 7:41 am
Posted on 3/29/18 at 7:46 am to GenesChin
quote:Ah didnt think of it that way, makes sense. People would definitely fall for that. Which is amazing because it's the same shite at 500/month, and they'd say that's crazy
It is pitched as low as $125/week
Posted on 3/29/18 at 8:25 am to castorinho
quote:
Which is amazing because it's the same shite at 500/month, and they'd say that's crazy
The clientele we're talking about is the same that probably doesn't have good enough credit to get any other type of loan. I think it's circular - bad financial habits limit them to shitty APRs to the point where that is the new baseline, which means they keep taking out shitty loans and on and on.
It's definitely something that I would struggle with I was making money off them.
Posted on 3/29/18 at 8:49 am to ATLdawg25
quote:
The clientele we're talking about is the same that probably doesn't have good enough credit to get any other type of loan. I think it's circular - bad financial habits limit them to shitty APRs to the point where that is the new baseline, which means they keep taking out shitty loans and on and on.
Think.....Aaron's. They pitch things like sofas and 50" TVs for $30 a week for 24 months. Imagine paying $3,120 for a 50" TV in today's market.
Posted on 3/29/18 at 9:36 am to GenesChin
quote:
To be in that business, you need to have some moral flexibility.
To say the least. I was approached by a friend a few years ago on going in on one with him. I turned it down, but he pursued it. He's killing it now, but I couldn't live with myself taking advantage of people like that.
Posted on 3/29/18 at 10:25 am to The Spleen
Same here. I even talked to a friend this week about it. It sounds pretty enticing, and is something I could likely have limited day to day involvement in.
In this day and age it seems like the only thing an honest man can do to make money is get paid a decent wage on a W2. There are ripoffs all around us. I was listening to the radio this morning and the whole commercial segment was a string of lies for suckers.
Having said that, suckers aren’t going anywhere. Poor people tend to stay poor by making poor decisions. I guess it just depends on how far removed from the sales to these people that determine if you are to be able to sleep at night.
Hell you have people like Lebrom that scream for equality and systemic oppression every chance they get. Meanwhile, he’s got a shoe that retails for $185 in which he should know his primary customer can not afford. Or better said, could be spending their cash more wisely elsewhere. But, he is on his 15th iteration and will likely continue endorsing even after he hangs it up. Oh and those same people probably shouldn’t buy the latest Samsung galaxy but he has no problem with selling those either.
In this day and age it seems like the only thing an honest man can do to make money is get paid a decent wage on a W2. There are ripoffs all around us. I was listening to the radio this morning and the whole commercial segment was a string of lies for suckers.
Having said that, suckers aren’t going anywhere. Poor people tend to stay poor by making poor decisions. I guess it just depends on how far removed from the sales to these people that determine if you are to be able to sleep at night.
Hell you have people like Lebrom that scream for equality and systemic oppression every chance they get. Meanwhile, he’s got a shoe that retails for $185 in which he should know his primary customer can not afford. Or better said, could be spending their cash more wisely elsewhere. But, he is on his 15th iteration and will likely continue endorsing even after he hangs it up. Oh and those same people probably shouldn’t buy the latest Samsung galaxy but he has no problem with selling those either.
Posted on 3/29/18 at 10:27 am to castorinho
quote:
Ah didnt think of it that way, makes sense. People would definitely fall for that. Which is amazing because it's the same shite at 500/month, and they'd say that's crazy
Commute to work, I passed by signs at a dealership advertising "Only $125/week" or whatever. I agree it was nuts. They also will knock $500 off your purchase if you can make a free throw on their bball hoop
quote:
The clientele we're talking about is the same that probably doesn't have good enough credit to get any other type of loan.
Keep in mind that a lot of these lots give out loans in excess of the car value as well, sometimes offsetting the markup with a lower APR to appear to give a better financing deal
So that $500 basketball shot discount, more likely just bringing the car value back closer to actual market value
This post was edited on 3/29/18 at 10:30 am
Posted on 3/29/18 at 10:41 am to OceanMan
quote:
Poor people tend to stay poor by making poor decisions. I guess it just depends on how far removed from the sales to these people that determine if you are to be able to sleep at night.
I see smart, well-educated people make poor decisions all the time. I definitely don't expect good decisions from poor people with limited access to financial education, surrounded by people in similar situations.
quote:
Hell you have people like Lebrom that scream for equality and systemic oppression every chance they get.
I'm a #JordanIsGOAT guy, but this is a ridiculous comment about a guy who is at the forefront of community acts to help elevate kids out of the poverty cycle. Lebron is only recently using his platform for politics, but he has earned that voice given the massive amount of $ he pours into communities
You don't have to agree with him, but major philanthropist talking about the subjects their charitable giving is addressing is a common thing.
Lebron gives every Akron kid who graduates HS a full ride to college
Opens school for kids at risk of falling into poverty cycle
This post was edited on 3/29/18 at 10:44 am
Posted on 3/29/18 at 11:02 am to GenesChin
quote:
I'm a #JordanIsGOAT guy, but this is a ridiculous comment about a guy who is at the forefront of community acts to help elevate kids out of the poverty cycle. Lebron is only recently using his platform for politics, but he has earned that voice given the massive amount of $ he pours into communities
My point wasn’t to attack him. It is simply that poor people make bad choices in what they spend their money on,and there will always be someone to sell it to them. I was using him as an example of someone that does it
He might be building schools to help kids in poverty, but selling $185 shoes is what gave him the money to do that in the first place. You want to actually change the culture? Stop using your celebrity to sell products to people that can’t afford them. But he won’t, because there is money to be made, and I don’t blame him for it, but he is perpetuating poor spending habits
quote:
I see smart, well-educated people make poor decisions all the time. I definitely don't expect good decisions from poor people with limited access to financial education, surrounded by people in similar situations.
Ok.
Posted on 3/29/18 at 11:07 am to mandevilletiger34
quote:
Thought about putting a few cars on it???
What about advertising a place to have others park their cars for sale? Say $50-100/ week? You have a sign out front, the owner gives you $50/ week to park his car there, and that's all you do. Absolutely no effort involved except to have a car park.
I'd think you could do decently well with this, and it would take almost no effort on your part. Sure you won't make $10k a month, but you may be able to pull $2k with like 4 hours of work at most.
Posted on 3/29/18 at 12:03 pm to OceanMan
quote:
It is simply that poor people make bad choices in what they spend their money on,and there will always be someone to sell it to them. I was using him as an example of someone that does it
It isn't the worst financial venture, just as I said earlier, it requires some moral flexibility
Posted on 3/29/18 at 1:14 pm to GenesChin
The guy that I described above can sleep with it at night because most other places around here charge the max 28% interest for those cars. He also takes time to show them the true cost of the car and tries to educate them. But he said even with the attempt at education there’s no way he’s going out of business any time soon.
Posted on 3/29/18 at 1:27 pm to AugustaTiger
quote:
The guy that I described above can sleep with it at night because most other places around here charge the max 28% interest for those cars. He also takes time to show them the true cost of the car and tries to educate them. But he said even with the attempt at education there’s no way he’s going out of business any time soon.
That seems like the right way to do it
Posted on 3/29/18 at 1:33 pm to mandevilletiger34
I own an independent lot in Baton Rouge. It’s a good business to be in, the most difficult part is understanding that there will inevitably be slow times.
To start off you’ll need a dealer’s license and liability insurance.
I, personally would stay away from financing the vehicles yourself, I.e buy here pay here, tote the note, in house financing. You don’t want that headache. You become a dealer, finance company, insurance company and mechanic garage.
It’s a good business to be in.
To start off you’ll need a dealer’s license and liability insurance.
I, personally would stay away from financing the vehicles yourself, I.e buy here pay here, tote the note, in house financing. You don’t want that headache. You become a dealer, finance company, insurance company and mechanic garage.
It’s a good business to be in.
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