Awesome business to get into. If you want to be successful in this biz, learn how to buy. It's as simple as that. Learn how to buy cheap. Learn how to work the auctions. Right now, cars are going to be sky high at the sale because of tax time. They should drop down around March.
I personally like to sell and finance my own vehicles. I have found that this is where the most money is at. I like the buy here pay here approach. Don't run a credit check. As long as they have a down payment and a pulse, they ride. Simple as that. If they don't pay, repo it, sell it again. Just be sure to get references. Let me tell you something, I know this seems sketchy and a lot of people are scared, but I promise you, hardly anyone runs. Out of doing this for the last 5 or so years on my own, I have only had 2 cars that have skipped on us that we could not find. So, if they don't pay, repo them.
I charge a 25% apr for people that have bad credit and can't get a hoola hoop financed. If someone's credit report looks good, I will give them a better interest rate. I love it when those payments roll in each month. Its awesome. At first, its kind of tough, but once you have 4 people your financing for paying you $250 a month, it starts getting sweet. Then you get 8, 12, 16, etc etc. It just grows and grows and grows. But the secret is, put everything back into it. Constantly invest in cars. If you buy them cheap enough, you basically can't loose. You already have the upper hand by being able to purchase them at the auction. So this gives you the edge on the average joe. Lets say you buy a car for $2000 that has a $4500 book on it. Ok, if you sell it for $4000 cash, you made $2000. If you have a hard time selling the vehicle you could always sell it for $2000 and make $500, and someone off the street thinks they got a hell of a deal. The public has no idea how cheap you can buy cars at the auction, that is if your a good buyer. Which takes experience. Sometimes years of experience. And a hundred or two here and there to your local auctioneer isn't a bad idea either, lol. He will tend to ignore others while you bid, but you'll learn all of that later. I wont get you started off on the wrong foot yet. You can do some much dirty shit in this business its not even funny.
Let me tell you another sweet trick. Don't always rely on the auction. Since you have a dealers license, go to the New Car Dealerships and get in good with the Used Car Manager. He will sell you the trade in's off the lot. This is good because you get the opportunity to drive and test the car, unlike you do at an auction. That way you know what is wrong with upfront and don't get any suprises like you might at an auction. I have bought cars at the auction before and have just paid "enough" for it, then to go home and find out the car needs a motor or transmission. Also you don't have the pressure of other bidders running the price up. Just kiss the sales managers ass. Slip him a buck or two here and there and he will look out for you. Get them a hooker, buy them liquor, etc etc. Take care of them and they will take care of you. This is no bullshit by the way. You know as well as I do some, not all of these car guys like to have a good time. Trust me it works. LOL.
As far as selling cars go, I have found that the Newspaper is a great resource for selling. Just get creative with your ads. You must make your ads stand out more than the other guys. So study the way others advertise. Man, i'll be honest with you there is so many damns way about selling cars, it would require me to write a novel on this subject. I am just jotting some shit down off the top of my head.
If you have any question in particular please feel free to ask.
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