Auction car buying. How do you profit from it? There is a local

resale on craiglist

Buy low, sell high.

>>16790168
my advice is to present yourself as a dealer
i personally wouldn't want to buy a car that someone only wanted for a week

>>16790204
>>16790176
>>16790175
CL was my intentions.

I came up with a figure for registration and insurance to put everything in my name. If I can't make a certain profit based on KBB, then it isn't worth buying.

Do I need a dealer license? I think in my state, I can sell 3 cars a month without getting one. I would assume lying to someone would only make me look worse if they google my name on the spot.

>>16790236
Yeah just tell customers you're a dealer and offer a 3 month warranty. I'd be surprised if anyone ever uses it.

>>16790168
>How do you profit from it?
the biggest problem is getting through your first dozen or so sales without copping a lemon. you go upside down on one car that had an issue you didn't see at auction and there goes all your previous profits.

the best way to avoid this is to get a dealer license so you can sling cheap-o shitboxes and make profit by volume. if one shitbox turns out to be a lemon, no big woop because you probably bought it for close to scrap value anyways.

>>16790314
K, so, my point was, telling someone I am a dealer when I'm not. Also, I don't want to have to pay taxes and other fees associated in running a business such as that. Also, I'm not lying to "customers."

>>16790359
>Also, I don't want to have to pay taxes and other fees associated in running a business such as that.

you will make that money up. those licenses and what not protect you and give you a tax shelter. it also allows you access to a bunch of other little goodies that make your life easier. not to mention it puts everything you are doing officially above board. just go through the rigmarole man. if you don't and you get burned, you are going to remember your post and wish you hadn't been so shortsighted.

>>16790352
Where do I buy cars that cheap? The auction company I'd buy from sells for pretty cheap, average sale was ~$1200. And the goal was to do this on the side. Maybe make an extra 1 or 2k a month. Not start a business.

Also, I've been to this place a couple times prior just to look around and the cars were in ok to decent condition. Nothing worth more than 6k and most weren't worth more than maybe 3k a vehicle, but many of them I would bid on were looking pretty good and sold between $700 and $2k.

>>16790392
Alright, I'll look into the licensing and benefits of being a dealer. Anything in that prospect I should ask about and be aware of?

I'll still have to start small, though.

>>16790395
> but many of them I would bid on were looking pretty good and sold between $700 and $2k.

the 700$ mark is what you want to shoot for. if i were just starting out i'd avoid anything over 1200$. 2k$ is a huge amount of capital.

you should be able to squeeze at least 500$ worth of scrap/parts out of a lemon should the worse happen. do it once and you will see how its so easy to cripple yourself in this game.

don't go to just one auction. keep a rotation of at least 3 places. preferably on opposite sides of town.

>>16790401
>I'll still have to start small, though.
yes, i'm not advocating getting it immediately. probably after your first 4-5 cars maybe. going slow and starting small is the best thing you can do. be a stingy nigger.

>>16790168
People in my area do this all the time, and it honestly doesn't seem very profitable unless you're preying on the uninformed and desperate during tax season or something.

Honestly, it's like gambling at those auctions. When you actually get it, you may find it's full of mold or rust or water damage of some kind. Rats living in it, etc. But people do it. There's a guy around here that buys them and sells them to idiots for double what he gets them for, lol.

Unless you're a mechanic, it's honestly probably not a good business. The cars often need work or they wouldn't have been abandoned, and the ones in perfect shape don't go for real cheap.

>>16790236
Things are never this simple. You'll find that market forces vary dramatically from region to region and season to season, and people will pay dramatically less or more than kbb based on those market forces.

It all can look great on paper but doesn't mean anything if you've got all your capital invested in cars and trucks and they aren't selling for what you have in them. It's really a risk unless you've got a mechanic in your back pocket and have a way to liquidate bad stock without much loss.

>>16790425
>>16790436
Cool, thanks.

>>16790439
They allow you to start up the cars and inspect each one for 2 hours before bidding starts. The ones I would have put money on were in pretty good condition. And yea, I can work on them if something goes wrong.