Advice thread: I'm considering opening a used car dealership

Rightwinger

Banned
Aug 7, 2004
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Has anyone around here been in the used car business? I'm interested in hearing from those who are familiar with buy here pay here and getting a floorplan.
 

Aimster

Lifer
Jan 5, 2003
16,129
2
0
We used to run a used car business.
We would buy cars and put them on the top of our street so people could see.

You need a permit if you are going to sell a certain number of cars.

Good money in it.
 

Rightwinger

Banned
Aug 7, 2004
216
0
0
Originally posted by: Aimster
We used to run a used car business.
We would buy cars and put them on the top of our street so people could see.

You need a permit if you are going to sell a certain number of cars.

Good money in it.

I'm familiar with the concept of buying and selling, I'm familiar with the licensing process.

What I'm NOT familiar with is BH/PH and floorplan options.
 

waggy

No Lifer
Dec 14, 2000
68,145
10
81
Originally posted by: Rightwinger
Has anyone around here been in the used car business? I'm interested in hearing from those who are familiar with buy here pay here and getting a floorplan.

yeah.

I used to own parts of a few used car dealerships.

what do you need to know?

how much cash you have to invest? do you know any wholsalers? have you worked in car sales before at anytime in your life?

a little background would be good.
 

Tylanner

Diamond Member
Sep 18, 2004
5,481
2
81
"I owe it to myself to tell you that if you're taking the whole tribe cross-country, the Wagon Queen Family Truckster is the way to go. You think you hate it now, but just wait until you drive it."
 

Rightwinger

Banned
Aug 7, 2004
216
0
0
Originally posted by: waggy
Originally posted by: Rightwinger
Has anyone around here been in the used car business? I'm interested in hearing from those who are familiar with buy here pay here and getting a floorplan.

yeah.

I used to own parts of a few used car dealerships.

what do you need to know?

how much cash you have to invest? do you know any wholsalers? have you worked in car sales before at anytime in your life?

a little background would be good.

Finallly! A decent response!

I'm in the planning process now, but ideally here's my plan:

20-25 car lot size, I want to do a lot of consignments so I'm not tying up $75,000 of my floorplan in inventory. Ideally I'd like to collateralize $25,000 cash with the floorplan going up to 100k, in case I want to ditch retail and just go wholesale to wholesale.

Wholesalers: I know some. I dont like any of them, but I know them.

No experience in car sales, plenty of heatware.
 

waggy

No Lifer
Dec 14, 2000
68,145
10
81
Originally posted by: Rightwinger
Originally posted by: Aimster
We used to run a used car business.
We would buy cars and put them on the top of our street so people could see.

You need a permit if you are going to sell a certain number of cars.

Good money in it.

I'm familiar with the concept of buying and selling, I'm familiar with the licensing process.

What I'm NOT familiar with is BH/PH and floorplan options.

Unless you have TON of extra cash the BH/PH plan is not going to happen.

Heck the last dealership we (me and my father) started upfront we had around $500k to start! we had 40 cars on the lot with room fro 65 when we opened.

not to mention you need a experianced salesmen, someone to help with finiancing and someont to buy cars.

Its not really a 1 man show (you can..but very hard).

I would sale on the days my dad would go to auctions (twice a week for a few hours) but he also had a wholsaler that brought cars in to buy. We also would get some cars off the local new car dealeships.

 

waggy

No Lifer
Dec 14, 2000
68,145
10
81
Originally posted by: Rightwinger
Originally posted by: waggy
Originally posted by: Rightwinger
Has anyone around here been in the used car business? I'm interested in hearing from those who are familiar with buy here pay here and getting a floorplan.

yeah.

I used to own parts of a few used car dealerships.

what do you need to know?

how much cash you have to invest? do you know any wholsalers? have you worked in car sales before at anytime in your life?

a little background would be good.

Finallly! A decent response!

I'm in the planning process now, but ideally here's my plan:

20-25 car lot size, I want to do a lot of consignments so I'm not tying up $75,000 of my floorplan in inventory. Ideally I'd like to collateralize $25,000 cash with the floorplan going up to 100k, in case I want to ditch retail and just go wholesale to wholesale.

Wholesalers: I know some. I dont like any of them, but I know them.

No experience in car sales, plenty of heatware.

oh boy.

i really dont know where to start. consigment sales? hahaha no. I have never seen a used car lot that has 90% of the inventory on consigment. IT might but i have NEVER seen it happen. UNLESS you know the owners of a few new car dealerships really really well.


you may not like the wholesalers but you darn well better buddy up with them. They will either make or break you.

ohwell. im off to bed. i will check the thread in the morning heh.
 

Evadman

Administrator Emeritus<br>Elite Member
Feb 18, 2001
30,990
5
81
Originally posted by: MeanMeosh
Originally posted by: Rightwinger
No experience in car sales, plenty of heatware.

... i spose i'd buy from a used car salesman who provided heatware

Lmao! Bwhahahaha!
 

jadinolf

Lifer
Oct 12, 1999
20,952
3
81
Originally posted by: Tylanner
"I owe it to myself to tell you that if you're taking the whole tribe cross-country, the Wagon Queen Family Truckster is the way to go. You think you hate it now, but just wait until you drive it."
huh?
 

Evadman

Administrator Emeritus<br>Elite Member
Feb 18, 2001
30,990
5
81
Shouldn't someone with a handle of "Rightwinger" be in P&N? As a duly appointed Elite Member, (AKA Dumbass) I banish you back to P&N where you belong.
 

Mo0o

Lifer
Jul 31, 2001
24,227
3
76
First time I've heard used carsalesman as a career goal from a 20 year old
 

Rightwinger

Banned
Aug 7, 2004
216
0
0
Originally posted by: Mo0o
First time I've heard used carsalesman as a career goal from a 20 year old

I plan on owning the dealership, so thats my goal. If I can build a business that makes me $100k annually and is worth twice that when I want to sell, I'll be a millionare by the time I'm 40.
 

olds

Elite Member
Mar 3, 2000
50,047
706
126
Originally posted by: mchammer
No experience in car sales, plenty of heatware.

:thumbsup:

I almost fell out of my chair!
But it got me thinking. I own lots of clothes. Maybe I'll start designing and put Versace out of business.
 

Freejack2

Diamond Member
Dec 31, 2000
7,751
8
81
If you have no experience in car sales it would seem to me a good first step would be to get a job at a car dealership to find out how things work.
 

Mo0o

Lifer
Jul 31, 2001
24,227
3
76
Originally posted by: oldsmoboat
Originally posted by: mchammer
No experience in car sales, plenty of heatware.

:thumbsup:

I almost fell out of my chair!
But it got me thinking. I own lots of clothes. Maybe I'll start designing and put Versace out of business.

I'm interested in financing your business. Whats your heat and ebay feedback?
 

olds

Elite Member
Mar 3, 2000
50,047
706
126
Originally posted by: Mo0o
Originally posted by: oldsmoboat
Originally posted by: mchammer
No experience in car sales, plenty of heatware.

:thumbsup:

I almost fell out of my chair!
But it got me thinking. I own lots of clothes. Maybe I'll start designing and put Versace out of business.

I'm interested in financing your business. Whats your heat and ebay feedback?

Heat in sig.
Sucky Ebay
 

Mo0o

Lifer
Jul 31, 2001
24,227
3
76
Originally posted by: oldsmoboat
Originally posted by: Mo0o
Originally posted by: oldsmoboat
Originally posted by: mchammer
No experience in car sales, plenty of heatware.

:thumbsup:

I almost fell out of my chair!
But it got me thinking. I own lots of clothes. Maybe I'll start designing and put Versace out of business.

I'm interested in financing your business. Whats your heat and ebay feedback?

Heat in sig.
Sucky Ebay

Hmm.. I'm sorry, I can not finance someone who is picky and complains too much. But if you follow Rightwingers plan you can be a millionaire in 20 years. Seems foolproof to me.
 

olds

Elite Member
Mar 3, 2000
50,047
706
126
Originally posted by: Mo0o
Originally posted by: oldsmoboat
Originally posted by: Mo0o
Originally posted by: oldsmoboat
Originally posted by: mchammer
No experience in car sales, plenty of heatware.

:thumbsup:

I almost fell out of my chair!
But it got me thinking. I own lots of clothes. Maybe I'll start designing and put Versace out of business.

I'm interested in financing your business. Whats your heat and ebay feedback?

Heat in sig.
Sucky Ebay

Hmm.. I'm sorry, I can not finance someone who is picky and complains too much. But if you follow Rightwingers plan you can be a millionaire in 20 years. Seems foolproof to me.

Hmmm... My wife is the Finance/Internet Manager for a Chevrolet dealership...
 

Mo0o

Lifer
Jul 31, 2001
24,227
3
76
Originally posted by: oldsmoboat
Originally posted by: Mo0o
Originally posted by: oldsmoboat
Originally posted by: Mo0o
Originally posted by: oldsmoboat
Originally posted by: mchammer
No experience in car sales, plenty of heatware.

:thumbsup:

I almost fell out of my chair!
But it got me thinking. I own lots of clothes. Maybe I'll start designing and put Versace out of business.

I'm interested in financing your business. Whats your heat and ebay feedback?

Heat in sig.
Sucky Ebay

Hmm.. I'm sorry, I can not finance someone who is picky and complains too much. But if you follow Rightwingers plan you can be a millionaire in 20 years. Seems foolproof to me.

Hmmm... My wife is the Finance/Internet Manager for a Chevrolet dealership...

You're sittin on a goldmine baby.