Becoming a car wholesaler

[MikeMike]

basically looking to become a car wholesaler so as to be able to go to the auctions, and buy cars there, to drive, and then sell later on. you can get cars pretty cheap there, but i need to find out how to become one.

MIKE

 

[QuitBanningMe]

All you need is a dealers licence (at least here) and that is only if you sell over a certain amount. All you need for most auctions is to prove you have the money and the license of course.

 

[mchammer187]

if you do so you must get a dealer license and when you are selling you must advertise yourself as a dealer otherwise it is curbstoning (buying alot of cars for profit and pretending to be a private seller) which I believe is illegal

 

[MikeMike]

Originally posted by: mchammer187
if you do so you must get a dealer license and when you are selling you must advertise yourself as a dealer otherwise it is curbstoning (buying alot of cars for profit and pretending to be a private seller) which I believe is illegal

theres ways to get around anything, such as:

my dad getting the liscense, he buys the vehicle, then sells it to me for $1, and then i use the car, and then sell later down the line.

MIKE

 

[QuitBanningMe]

Ohio seems to be a little more difficult
You can find out more here:
http://www.niada.com/

or here

http://bmv.ohio.gov/mvdr_usd.html

 

[Pacfanweb]

Depends on your state. You will definitely need a dealer's license, which in my state, is an adventure unto itself.

After that, you just need to check with the auction to see what they require for you to purchase or sell there. Some auctions are for franchise dealers only (e.g., Ford or GM dealers) and independents can't go.

The next thing you will need is some knowledge and experience. There is no book, no class, no online reference that can even come close to what years and years of experience in the car business will teach you.
It looks like some wholesalers just ride around and hustle a few cars a month, but there is nobody who does that who wasn't already in the car business for a long time before.

If you get as far as getting a license and going to auctions, remember to always wait for the "sure thing". Don't just buy something to say you got it. Always wait for one you just KNOW you are stealing at that price. That's where most dealers get into trouble....they want to have a lot full, and they want it now, so they buy some cars that aren't that great a deal.....they they get stuck with them and ultimately lose money.

I personally will get my dealer's license within the next year or so, but I will only buy cars that I absolutely know that if push comes to shove, I can sell to a local dealer and at least make a few hundred.
Never get stuff that you have to sell at retail to make money.
Example: 2 years ago, the dealership I worked for was buying Explorer Sports with 15-30k miles, for less than 10 grand. Sometimes 8-9 grand, depending on the options.
We were selling them all day long for 12-13k.
So if you, as an individual, could buy them for say, 10k, and turn them quickly for 12k, that's 2g's, in your pocket, minus expenses...which are minimal on a car that new.
Same for the so-called "program" cars, mostly Tauruses. They could be basically stolen at auction, then sold for lots of profit.
Always stick with the hot seller, no matter what it is.....don't buy something just because you like it. Buy it because you can make money on it.