I'm trying to get a dealer's or wholesaler's lisence for selling autos. If anyone has tips or info on how and where to buy really low, please post it. Thanks
Although I am not presently a car dealer, I have been in California in San Diego County and have been associated with the car business in three different states spanning twenty five years.
First, go to the Ca. DMV website and request a Dealer Packet. If you are only wholesaling there will be a little less hoops to jump through than if you plan on retailing to the public.
Second, just like in any other business, you need knowledge. If you have limited or no experience in the car business, I would not recommend trying to start out as a dealer. If you think you can get burned on a house deal without knowledge, it is just as profound in the car business.
As far as where to buy "low", don't get sucked in by all the "Public Auctions" or Lists of forefeited cars available at auction. You can buy cars directly from the public (owner distressed situation), you can buy from other licensed dealers and wholesalers, you can buy from "Dealer Only" auctions, and so on. Remarkable how dealing in automobiles and dealing with houses and commercial property has some similarities. Good Luck.
I held a dealers license for many years and have probably purchased millions of dollars in vehicles at auction.
I purchased at dealer only auctions such a Manhiems one of the largest automobile auctions going and very strong in California.
You will buy at wholesale or below at a dealers auction, however you will be in for a real learning experience. Talk about being a newbie in the real estate investing world, try being one at an auto auction up against some of the top players in the auto business.
You will go through a background check, probably post a $50K bond among other things required by the DMV.
As far as finding vehicles priced really low, you will now become a "Cash for Cars" advertiser rather than a "I Buy Houses" one. You will run into about the same type of seller if they are motivated you get a good deal, if they aren't it is like dealing with a FSBO house owner. You will run your legs off looking for those good deals without a license.
You must keep up on what's going on in the car biz. It wasn't too long ago they raised the bond in Ca to $50K.
As you John, I have attended and bought and sold at some of the bigger auctions such as Manheim, ADT, Adesa and so on. I can remember many years ago as a newbie used car manager. You sure can get bounced off the old proverbial "coke machine" while you're in the learning stages.
thanks for your replies. I've been buying and selling w/ out lisence for 4 years. Lowballing sellers and searching for deals. I want to get the dealers/wholesalers lisence so that I can hit the dealer's auctions as you all mentioned. I've heard that banks sell repos for only what is owed. Is that true? I want to use my earnings from cars towards my future real estate investments.
Please don't get the idea that I am discouraging you from moving forward with your plans to become a licensed dealer in California. I think it's great that you have drive and ambition.
As far as the banks, they are just like anyone else. They will sell vehicle for as much as they can get. They will protect their cars on the auction block but they won't tell the auctioneer, "Tell them not to bid anymore 'cause we've reached the amount for the loan payoff."
I had an inside track to a lending institution at one time which allowed me to deal with them prior to the car going to a dealer auction. That took many years of marketing and kissing butt to accomplish.
If I were you, I would start out with what John suggested. Put an ad in the paper, Pennysaver, etc. that says "Top Dollar Paid For Your Vehicle, Paid For Or Not. Quick Cash. Call Now (111) 111-1111.
Good Luck.
Dave
_________________
"Opportunity is missed by most people because it is dressed in overalls and looks like work." (Thomas A. Edison)[ Edited by dealfinder on Date 06/18/2004 ]
I have seen some "curb" cars for so much down and so much a month and no credit check. If you check these are cars that someone has given the owner a few bucks and taken over the payments subject to the existing financing. Then they re-sell the vehicles with so much down and a bump in the monthly payment.
Dealing in Subject To investing has taught me that not only can you Subject To houses, you can do the same with automobiles, motor homes and boats.
I just sold a Motor Home that I picked up from a person who purchased a home from me. They could not make the house payment and the motor home payment both. So I told them I would take over the payments on the Motor Home for the balance owed. There was no money out of my pocket for the Motor Home.
I sold the Motor Home for $6K down with a bump in the monthly payment and some money on the backend. If you look around there are plenty of these deals available without them coming from selling a home. Motivated sellers are not only restricted to owning a property.
One of my favorite water deals was a 52' yacht that I took on subject to the existing financing, I used it all summer and towards the end of the summer I put it up for sale, this deal was worth $18K to me on the front end plus a whole summer of fun.
"Curbing" means that you put a vehicle you have for sale in a parking lot, along side the road or other high traffic areas.
Monopoly,
Although I am not presently a car dealer, I have been in California in San Diego County and have been associated with the car business in three different states spanning twenty five years.
First, go to the Ca. DMV website and request a Dealer Packet. If you are only wholesaling there will be a little less hoops to jump through than if you plan on retailing to the public.
Second, just like in any other business, you need knowledge. If you have limited or no experience in the car business, I would not recommend trying to start out as a dealer. If you think you can get burned on a house deal without knowledge, it is just as profound in the car business.
As far as where to buy "low", don't get sucked in by all the "Public Auctions" or Lists of forefeited cars available at auction. You can buy cars directly from the public (owner distressed situation), you can buy from other licensed dealers and wholesalers, you can buy from "Dealer Only" auctions, and so on. Remarkable how dealing in automobiles and dealing with houses and commercial property has some similarities. Good Luck.
Dave
[addsig]
monopoly,
I held a dealers license for many years and have probably purchased millions of dollars in vehicles at auction.
I purchased at dealer only auctions such a Manhiems one of the largest automobile auctions going and very strong in California.
You will buy at wholesale or below at a dealers auction, however you will be in for a real learning experience. Talk about being a newbie in the real estate investing world, try being one at an auto auction up against some of the top players in the auto business.
You will go through a background check, probably post a $50K bond among other things required by the DMV.
As far as finding vehicles priced really low, you will now become a "Cash for Cars" advertiser rather than a "I Buy Houses" one. You will run into about the same type of seller if they are motivated you get a good deal, if they aren't it is like dealing with a FSBO house owner. You will run your legs off looking for those good deals without a license.
John $Cash$ Locke
Dave,
You are correct the similarities are remarkable between the two ventures.
John $Cash$ Locke
John,
You must keep up on what's going on in the car biz. It wasn't too long ago they raised the bond in Ca to $50K.
As you John, I have attended and bought and sold at some of the bigger auctions such as Manheim, ADT, Adesa and so on. I can remember many years ago as a newbie used car manager. You sure can get bounced off the old proverbial "coke machine" while you're in the learning stages.
Dave
[addsig]
thanks for your replies. I've been buying and selling w/ out lisence for 4 years. Lowballing sellers and searching for deals. I want to get the dealers/wholesalers lisence so that I can hit the dealer's auctions as you all mentioned. I've heard that banks sell repos for only what is owed. Is that true? I want to use my earnings from cars towards my future real estate investments.
Monopoly,
Please don't get the idea that I am discouraging you from moving forward with your plans to become a licensed dealer in California. I think it's great that you have drive and ambition.
As far as the banks, they are just like anyone else. They will sell vehicle for as much as they can get. They will protect their cars on the auction block but they won't tell the auctioneer, "Tell them not to bid anymore 'cause we've reached the amount for the loan payoff."
I had an inside track to a lending institution at one time which allowed me to deal with them prior to the car going to a dealer auction. That took many years of marketing and kissing butt to accomplish.
If I were you, I would start out with what John suggested. Put an ad in the paper, Pennysaver, etc. that says "Top Dollar Paid For Your Vehicle, Paid For Or Not. Quick Cash. Call Now (111) 111-1111.
Good Luck.
Dave
_________________
"Opportunity is missed by most people because it is dressed in overalls and looks like work." (Thomas A. Edison)[ Edited by dealfinder on Date 06/18/2004 ]
monopoly,
I have seen some "curb" cars for so much down and so much a month and no credit check. If you check these are cars that someone has given the owner a few bucks and taken over the payments subject to the existing financing. Then they re-sell the vehicles with so much down and a bump in the monthly payment.
Dealing in Subject To investing has taught me that not only can you Subject To houses, you can do the same with automobiles, motor homes and boats.
I just sold a Motor Home that I picked up from a person who purchased a home from me. They could not make the house payment and the motor home payment both. So I told them I would take over the payments on the Motor Home for the balance owed. There was no money out of my pocket for the Motor Home.
I sold the Motor Home for $6K down with a bump in the monthly payment and some money on the backend. If you look around there are plenty of these deals available without them coming from selling a home. Motivated sellers are not only restricted to owning a property.
One of my favorite water deals was a 52' yacht that I took on subject to the existing financing, I used it all summer and towards the end of the summer I put it up for sale, this deal was worth $18K to me on the front end plus a whole summer of fun.
"Curbing" means that you put a vehicle you have for sale in a parking lot, along side the road or other high traffic areas.
Who says creative real estate investors have all the fun.
John $Cash$ Locke