Buying and Selling used cars

[racer69]

We all hear the 'get rich quick' stories and tales about people buying and selling used cars for profit, but in all seriousness, is there good money to be made out of buying and selling used cars?

[garcon]

Only if you know exactly what you're doing...

One surefire way of getting rich quick is to write a book about how to get rich quick selling used motors and market it in the Mail on Sunday for £15 a copy. Muggins here bought one - it was called Four Wheels To A Fortune..

There's recently been a show on UK television called Wrecks to Riches where a used car dealer turned tv presenter started with £300 and traded up to £10,000+ worth of car, which the show gave away to a "lucky" viewer.

You need trade contacts you can trust to get hold of cheap cars in the first place. If you're going to do it legally you need to register and insure as a trader, give a basic warranty on the cars you sell, and disclose your profits on your tax return - it all eats into the profit, and one dodgy engine valve will probably wipe you out once Mr Angry Punter returns... Oh, and if you start well and reach a certain turnover, you'll have to tell the nice man from customs and excise too. And he'll take VAT off you for every car you put through the books.

Like any 'get rich quick' story, the truth behind the tale is alot of very hard graft and some luck.

I have a few friends in the trade, and have always taken an interest, but of twenty or so cars I've had over the years, I only ever made a profit on one of them (unless you count the generous insurance write-off valuation )...

[StuiE]

I heard of someone that bought a VNSS for $2k or something with a little bit of from the auctions, then fixed the damage and sold it for $10k

At auctions bargains can be had, but trying to sell it after is usually not so easy..if no-one wanted it at an auction, who from off the street would want to buy it?

My mate did a manual conversion on his car for practically free, bought a wreck for $xxx and then sold all the bits he didnt need, after the selling of bits it cost him about $100 total, instead of the usual $800-$1300 in parts.

[Crash Test]

I know my car originated at auctions, and it's a pretty good little jigger. After spending a little bit on it, it is probably worth twice as much as it's original purchase price.

[DAVID PATERSON]

What have you done to the Ford Crash?

[kickstart]

I have bought and sold cars for about 20 years. It is far easier to loose money than make it.
One of the best ways that I used to use many years ago was to buy circa 10 year old cars from the very best neighbourhoods. Look in the local paper that covers the rich districts and try and buy one owner/low mileage very carefully looked after cars. These types of cars eg Volvo's and VW should sell well once they have been valeted.
Good luck

[StephenRae]

I found the biggest problem when dealing at the bottom end of the market is that you are usually taking all their money. Its harder to squeeze £500 out of someone if its all they've got than it is to take £5000 plus some finance from a punter in a well paid job.

[garcon]

That's true, but it can be countered by hopefully (!) quicker turnover and the simplicity of cash deals. (Of course, I would never advocate not putting all your deals through the books... )

Depends on the local marketplace to a degree. kickstart has a good plan, but that can be hindered by sellers with absolutely hilarious ideas of what their low mileage ten year old pride and joy is worth to the trade...

[Crash Test]

Put two new tyres on it, got the front repainted (a bit crazed with bat shirt, paint at the right price, unclog the radiator, a window regulator, ball joint boots, and a head gasket. Looks tragic, but the parts were in the $0 to not a lot bracket, apart from the $400 worth of paint and pin striping. Labour also at the right price, it's not what you know, but who you know

[StuiE]

Actually, now that I think about it, the previous owner of my car bought it at an auction for $800 pretty good nick, put his GTS2 motor, and a few other goodies ...and sold it to me for $2500 he probly made about $1000-$1500 on it I rekon, but was still a good deal for me.

[Homer Simpson]

A little OT, but when I was in college in California I used to attend police and DEA (drug enforcement agency) car auctions with my roomate, as he used to buy cars, fix them, and resell them at profit (all this with college loans, of course). Many of these cars were obtained from police raids, meaning that many of them belonged to drug dealers, criminals, etc...
There was a case a while back about two American businessmen crossing the Mexico-US border, only to be stopped and arrested due to police dogs sniffing out a few lbs of marijuana stashed in a secret compartment in their vehicle. Apparently, they claimed they had purchased the vehicle at a DEA aution, and at their trial they blamed the police for not having thouroughly "cleaned" the car before putting it up in auction.

[daz90]

I recently had a go at this, i saw a Vauxhall Astra, 1.7 diesel swing, on an M plate, bought it for 400 notes, it had failed an mot with a few bits to do to it, new wing mirror, couple of brake pipes, brake server was leeking, a good service, and a pair of headlights. Managed to do the work inc cost of buying it for 520 pound, sold put it up for 800 quid, sold it for 700, but after the time i spent on it it just was not worth it.

If your a proper dealer then yes its worth it, but for an amatuer like me, then no its not, unless its classic cars.

[touringcarnut]

I think you have to have a passion for the cars or dealing in classics as daz90 says. The problem is that there are so many second hand cars to choose from, that people will be happy to shop around and not buy the car you need to sell quickly after patching it up.

A friend of the family's used to do this, but in the end his margins hwere so small that he called it a day.

[bella]

i could sell the car i've got now and make 2 grand on it. i got it cheap from a renault dealership. it's all about who you know...

[TimD]

Alternatively, buy very, very, very cheap.

As long as you know what you're doing, it is possible to find a serviceable car for a couple of hundred pounds. Find someone desparate to move a car, spend a little if necessary on making sure it's safe and then give it a very thorough clean.

My best one was a 1980 Talbot Avenger. Bought for £50 with a dent in the door from a young lad who had driven out in front of someone. He got discouraged with the car and his dad had got him a new one...

Door panel was salvageable, I know how to skim a doorskin smooth after work and I can use a spray gun.

£475 in Auto Trader and the buyer drove away a good car, convinced he'd got a bargain because he hammered me down to £400!

It won't make you a living at those sorts of levels, but it's fun, it doesn't represent much of a financial risk, it's pocket money, and it helped me get through college!

[simon drabble]

I occassionally get blinded by a cheap Jaguar but I always move them along in the trade - its cleaner and no need for warranties etc...
however I think I would be pushed to make anything more than pin money to try and offset my racing costs (fat chance of being able to do that sadly!)