Used Cars
Today, with the average consumer now spending up to $16,400 fora new car, consumers realize the importance of investing inlower priced used cars. With millions of buyers entering theused vehicle market every year, a wealth of opportunities existsfor anyone looking for extra-income, or a new and lucrativefull-time career. The key to making a lot of money in thisbusiness, is to buy-low, and sell at a huge profit! This reportwill show you how to get started down your road to riches!
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 $3,500 or more for a single sale inone month to be “extra income,” you could easily make that inyour spare time without much effort.
On the other hand, you may be one of those people who want to betheir own boss. While it’s true that the risk are often greaterthan if you just worked for someone else, it’s just as true thatrisks and rewards go hand in hand. If you’re willing to take theplunge, the potential returns are also greater. If you have abit of adventuresome spirit and confidence in your own skillsand abilities, operating your own used car business may be theideal way for you to make big, big money!
ADVANTAGES OF OWNING YOUR OWN BUSINESS
The opportunity to express your own ideas and do things exactlyas you want is among the primary advantages of operating yourown business. The challenge and excitement of running your ownoperation also ranks high on the list. Another big advantage isthat you will receive all the profits generated by your time andefforts. Then the potential exists to develop a part-timebusiness into a full-time career that produces an income younever thought possible.
SKILLS and ABILITIES NEEDED
The same type of personal skills that are necessary tosuccessfully work for someone else are also required to besuccessful in working for yourself. Personal skills wouldinvolve being conscientious, dedicated, determined, andpersistent, in addition to possessing good human relationsabilities.
There is also another type of skill that is necessary thatinvolves the ability to manage and organize your activities, andpossibly those of others if you hire car salespeople to work foryou. This skill should be taken very seriously, because it isthese skills that can cause one business to be a huge successwhile the other is a total failure.
Lastly, you will need technical skills. These are the skillsthat include the knowledge to perform the activities involvedin the used car business. It is this combination of technical,personal, and management skills that will make your operationsuccessful.
GETTING YOUR USED CAR BUSINESS ESTABLISHED
Whether you are operating your business on a part-time orfull-time basis, people will expect you to provide the type ofservice any consumer expects. They will also associate the typeof service they can expect with the image you create for yourbusiness. This image will be the impressions 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 therich, the poor, or the middle class? Do you sell something foreveryone or do your specialize? (just pickup, just vans, etc.)
Any positive image is fine, as long as you are consistent ineverything you do within the scope of that image. The image youcreate will largely set the tone for all your businessactivities, including selection of a business location, type ofvehicles handled, prices charged, etc.
SELECTING A LOCATION
If you are going to buy one or two cars at a time for resale ona part-time basis, then working right from your home shouldn’tpose a problem for you. However, if you intend to eventuallyhave a large, full-time business operation, the most importantingredient that can lead to success or failure can depend onyour location. What constitutes a good location varies with thetype of business. But in the used car business it means beinghighly visible in a high traffic area and being situated so thatdriving customers can get to you. In many cases, the locationyou consider ideal may not be available or if it is, the costmay not be practical. In that event, you will simply have toselect the next best location you can find that is affordable.Then you will have to make a strong advertising and promotionwork to make customers aware of who you are, and what you areselling, and where they can find you.
Whether you select a location at your home or in a businessdistrict, you must make certain you are operating within cityand county zoning ordinances. Zoning ordinances are regulationsspecifying what each parcel of property within a community canbe used for. In the location you decide on is not zoned for thetype of business you want to start, you can appeal to the zoningcommission to obtain a “zoning variance.” If approved, you wouldbe allowed to use the property for your business.
HOW TO LOCATE USED CAR SUPPLIERS
To get started in the “Buy-Low, Sell for Huge Profits” used carbusiness, you will have to locate suppliers. In some cases youwill be able to buy directly from individual car owners. Atother times you will go to independent auction houses or attendU.S. Government Auction Sales where you can often purchasevehicles for pennies on the dollar.
An independent auction houses vehicle owners have auctioneerssell their vehicle by getting buyers who are at the auctionhouse to bid against one another. Generally, there is a minimumbid set. The person who offers the highest bid over the minimumset has the winning bid. The seller however, also has the rightto 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 theU.S.A., many on a weekly schedule. For additional information onauction house locations refer to your telephone directory under”Auctions” or “Car Auctions,” write to:
National Auto Research P.O. Box 758 Gainesville, GA 30503 (404)532-4111 (800) 554-1026 (Except Georgia)
N.A.D.A. Used Car Guide Co 8400 Westpark Drive McLean, VA22102-9985 (703) 821-7193 (800) 544-6232 (800) 523-3110 (inVirginia)
U.S. GOVERNMENT AUCTIONS
A wide variety of personal property either no longer needed orseized by the Federal Government is periodically placed onpublic sale.
The Department of Defense and the General ServicesAdministration are the principle Government sales outlets forsurplus property. As items become available for public sale,catalogs and other types of announcements are distributed topeople who have expressed and interest in bidding on the typesof property being offered.
Sales generally are on a competitive bid basis, with theproperty being sold to the highest bidder. Among the manythousands of items sold are automobiles and other vehicles ofevery imaginable make and model. In fact, tens of thousands ofvehicles are sold by the government at public auctionsthroughout the country every year!
How can there be so many vehicles for sale? Because theGovernment is so huge that it’s difficult to even comprehendjust how much property is amassed for resale. In fact, thegovernment seizes, confiscates, and forecloses on property thatresults in many millions of pieces of property every year, andthe numbers continue to grow.
Incredibility, the government isn’t a private business that isinterested in making a profit on the items it sells. Thegovernment is mostly interested in eliminating the enormousstockpile of seized and surplus vehicles and other properties.As a result, many thousands of vehicles are offered to thepublic through government auctions at a fraction of their actualvalue. This is where you can buy just any model of vehicle youwant at super-huge savings, and make incredibilty-high resaleprofits.
HOW TO GET THE GOVERNMENT’S VEHICLE AUCTION MAILING LIST
Both the Government Services Administration (GSA) and theDepartment of Defense maintain mailing lists on personsinterested in seized and surplus property sales. People on theselists are sent catalogs and other sales announcements in advanceof sales and given the opportunity to inspect the vehicles andother property and submit bids.
Each GSA regional office maintains a mailing list for sales ofproperty located in the geographical area it serves. For generalinformation about sales conducted by GSA, or placed on themailing list, write to any of the following addresses.
The Department of Defense maintains a centralized mailing listfor the sale of its property located in the United States. TheDefense Surplus Bidders Control Office, defense LogisticsService Center, Federal 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, DC20407
Serves: District of Columbia, Nearby Maryland, Virginia.
REGION 1
GSA Customer Service Bureau Post Office & Courthouse Boston, MA02109
Serves: Connecticut, Maine, Massachusetts, New Hampshire, RhodeIsland, Vermont
REGION 2
GSA Customer Service Bureau 26 Federal Plaza New York, NY 10278
Serves: New Jersey, New York, Puerto Rico, Virgin Islands
REGION 3
GSA Customer Service Bureau Ninth and Market StreetsPhiladelphia, PA 19107
Serves: Delaware, Pennsylvania, Maryland, Virginia, West Virginia
REGION 4
GSA Customer Service Bureau 75 Spring Street, SW Atlanta, GA30303
Serves: Alabama, Florida, Georgia, Kentucky, Mississippi, NorthCarolina, South Carolina, Tennessee
REGION 5
GSA Customer Service Bureau 230 S. Dearborn Street Chicago, IL60604
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, TX76102
Serves: Arkansas, Louisiana, New Mexico, Oklahoma, Texas
REGION 8
GSA Customer Service Bureau Bldg. 41-Denver Federal CenterDenver, CO 80225
Serves: Colorado, Montana, North Dakota, South Dakota, Utah,Wyoming
REGION 9
GSA Customer Service Bureau 525 Market Street San Francisco, CA94105
Serves: Samoa, Arizona, California, Guam, Hawaii, Nevada
REGION 10
GSA Customer Service Bureau Auburn, WA 98002
Serves: Alaska, Idaho, Oregon, Washington
HOW TO DETERMINE THE VALUE OF USED VEHICLES
Whether you attend or purchase a vehicle outright from a seller,you must know what it is worth. The best way to determine avehicle’s average market- trade-in or wholesale value, averageloan or average retail value is, is to subscribe to the N.A.D.A.Official Used Car Guide, Published monthly by the NationalAutomobile Dealer’s Used Car Guide Co.,8400 Westpark Drive,McLean, VA 22102-9985. Write for current subscription rates.
N.A.D.A. also published guides as follows:
Official Older Used Car Guide…Official Used Car Trade-InGuide…Official Title & Registration Book…Official RecreationVehicle Guide…Official Motorcycle/Snowmobile/ATV PersonalWatercraft Appraisal Guide…Smaller Boat AppraisalGuide…Official Larger Boat Appraisal Guide…Official MobileHome Appraisal Guide and Mobile Home Appraisal System.
A weekly used car market guide is also available from: NationalAuto Research, P.O. Box 758, Gainesville, GA 30503. Write forcurrent subscription rates.
REGIONAL CLASSIFICATIONS
The average values listed in the N.A.D.A. Office Used Car Guideare based upon reports of actual transactions by dealers andauction houses throughout each area for which a guide ispublished. A used car guide-book normally includes 1) DomesticCars; 2) Imported Cars; and 3) Trucks. Manufacturer’s names arelisted alphabetically.
SECURING LICENSES AND PERMITS
City, county, state and or/federal, licenses or permits areoften required before entering a particular business or serviceoperation. Often, these are issued solely as a fund-raisingmeasure, and are therefore easy to obtain simply by submitting afee.
On the other hand, licensing is also used as a method ofregulating the competency of those entering a particular fieldand to protect the public from shady operators. In some casesand exam is administered, and moral and financial requirementsmay need to be met as well.
In the used-car business, most states require that you obtain adealers license if you are buying and selling vehicles for thepurpose of making a profit. However, you are not required toapply for a license if you only make an isolated or occasionalsale. You are not considered to be in the business of sellingmotor vehicles in that event. “Isolated or occasional sales” inmany states means “the sale, purchase, or lease of not more thanfive motor vehicles in a 12-month period.
Once you begin to sell more vehicles for profit that is allowedby your state law on a annual basis, you should apply for aDealers’ License by contacting your State department of PublicSafety Or Department of Motor Vehicle.
Check with your attorney or other city officials to determinewhat licenses and permits are needed. Simply start up a businesswithout having the proper authorizations can result in severepenalties, and you could be forced to discontinue operations.
Many states and some cities and counties, require that salestaxes be collected. The state sales tax permit is available fromthe State Department of Revenue. City and county permits areavailable from the tax department in those jurisdictions.
Even though a certain amount of “red-tape” must be tolerated toobtain some licenses and permits, this is usually a one-timeoccurrence. Then, It’s just a matter of simply submitting anannual renewal fee.
(1 votes, average: 1 out of 10)
Loading ...