Any Car Dealer Owners?
 

Thinking of getting into selling cars next summer. Have a friend who can go in 1/2 and 1/2 with me. Will be used cars, 3-4k or less sale price.

Location: Will be within 5 min of a city with a college, and old people and rednecks. I think this would be a good place for it.

Good idea? Bad idea? Any stories, advice, experience?

Thanks,
Tommy

well your guna need atleast 20-30 cars.. and 2-4k each that is 40-120k + dealer lic. +location +start up+ permits+utilites+advertising+a ton of other ****.. so that takes it to 80-160K so your 1/2 is $40-80K start saving

And nobody will buy a car from a kid.

We have around $700k in inventory most of the time.
Most units sell in the $15k to $20k range, with exceptions on both sides (we'll keep clean trades for sale down to $4k, and will usually stock two or three $35k to $45k units).

In the current used car climate, I do not advise copying our business plan. We may close the doors in a few months. Been fighting to try to achieve a breakeven year for the past few but it's mostly been in the red.

Cheap cars $3k to $8k and a hookup with a finance company that will take "C minus" credit risks will make you some profit, though. It's just hard to sleep well when you know you are selling to people who will most likely have to give the car back to the bank in a year and lose their a$$ on it..

How are people rated A, B, or C for credit? I thought they were given number scores with 820 being the highest... Is there a breakdown inside of that?

Vyper,

900 is the highest score on the Beacon scale.
The rating system looks at a LOT of stuff, and is damaged badly with any late payment entries. Also things that affect it negatively are how many credit cards you have, and how many inquiries have been submitted recently).




The "ABCD" scale is variable and each institution has their own idea of what numbers correspond to what grade.

780 or above is generally "A+" credit (everybody has their own variation).
720 is "A"
680 is "A-"

Below 680 is "B"
Below 600 is "C"

Highest I've seen on a person is 840.
Last time I checked, mine was 790 (I go for all of those "free prize" no fee credit cards just so I can get the free prize, and I also have several business credit lines which renew at different times of the year and they always run a new inquiry on me which knocks you down a few points).

MC - Thanks for the info and clarification.

I have sold one car at a parking lot. Think I will take my truck down to one later today. Will have to find some cheap needing a timing belt import to fix and sell.

Oh, what will happen if I sell over the max number of cars in a year? I think it is 6 in OH without a dealers license.

Please refer to post about not having a job and trying to save up 2000.00:rolleyes: