1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

Is there money in used cars?

Discussion in 'Motors' started by great advice, 27 Mar 2006.

  1. great advice

    Mobster

    Joined: 20 Oct 2003

    Posts: 2,872

    Location: Manchester

    Im thinking of a semi-carear change at some point and im thinking of a used car lot.

    The reason being is that i have a few friends in the industry who are fairly wealthy, though they do keep telling me there's no money in used cars - i do think its more they dont want to have a piece of there pie.

    At the moment i buy the odd bargain out of the auction, do what ever work that needs doing then sell it on for a profit - not a huge profit but enough to make it worth while imo

    The only thing im not sure on is where the money is! Is it in prestige cars where you get a bigger profit margin but sell less of them or in cheaper cars where you have a higher turn over but less of a profit in each motor?

    My current business already offers finance through black horse and ive spoke to them about it and they are happy for me to offer car finance as long as i keep to a few rules by some governing body, cant remember who but im sure ill found out more when i further my enquiries.

    Is it too risky a business?
     
  2. Zip

    Capodecina

    Joined: 26 Jun 2005

    Posts: 20,224

    Location: Australia

    I would say there is.
    Most Used car dealers say there is no money in used cars but they all seem to be very wealthy.
    Importing and exporting cars can make a lot. Buy them cheap from other counrtys and sell them a little bit lower then what their UK counterparts are going for and you should make quite a lot:D
    Might be worth something to look into.
     
  3. Dup

    Capodecina

    Joined: 10 Mar 2006

    Posts: 10,317

    Location: East Lancs

    I'd say there was if you know how to shop for a used car and you can carry out your own independant check, weather it be you or an independant party for any immediate mechanical faults.

    Also, all used cars have to be HPI checked by law before you can resell it and this must be available to the customer.
     
  4. jamoor

    Sgarrista

    Joined: 22 Jun 2005

    Posts: 8,824

    Location: Nottinghamshire

    exporting cars to less develped countries has gotta be a money maker.
     
  5. The_Dark_Side

    Capodecina

    Joined: 21 Oct 2003

    Posts: 13,608

    Location: Back with a Vengeance.

    there is.
    and lots of it.
     
  6. TONY

    Wise Guy

    Joined: 29 Apr 2004

    Posts: 1,525

    Location: Birmingham, uk

    I would say so, a mate of mine has a used car lot which has less than twenty cars for sale on it atm and he is still making enough money to drive round in an Aston Martin.
     
  7. jamoor

    Sgarrista

    Joined: 22 Jun 2005

    Posts: 8,824

    Location: Nottinghamshire

    does he live in a 2 bed ex council house though?
     
  8. The_Dark_Side

    Capodecina

    Joined: 21 Oct 2003

    Posts: 13,608

    Location: Back with a Vengeance.

    does it matter?
    if the wealth is there it makes zero difference how he chooses to distribute it.
    an Aston and a council house or a Focus and a £100k apartment...financially they both need the same amount of funding.
     
  9. jamoor

    Sgarrista

    Joined: 22 Jun 2005

    Posts: 8,824

    Location: Nottinghamshire

    but that doesnt make him wealthy though does it?
    A bloke driving an aston martin and living in an ex council house imo doesnt seem wealthy at all, therfore its not really impressive.
     
  10. The_Dark_Side

    Capodecina

    Joined: 21 Oct 2003

    Posts: 13,608

    Location: Back with a Vengeance.

    a bloke running an Aston IS wealthy. end of story.
    wheher he seems wealthy or impressive depends on whether you're the type of person that would rather wear your designer labels on the inside or the outside.
     
  11. panthro

    Capodecina

    Joined: 19 Nov 2004

    Posts: 11,884

    Location: Wokingham

    define wealth........

    There is definitely money in used cars. It just depends on which cars they are, market flucuations etc. Tom Hartley is a good example.
     
  12. Zip

    Capodecina

    Joined: 26 Jun 2005

    Posts: 20,224

    Location: Australia

    As much as i hate them, try selling some Holdern Comodores over there.
    Down here they sell cheap and i mean really cheap but up there they are like gold.
    The profit you should make will be huge :)
    Also Portugal and Holand sell RHD cars cheap aswell(thanks The_Dark_Side and Morba) :)
    Have a look at the rules and regulations of importing and exporting.
    Its a gold mine if you get it right
     
  13. The_Dark_Side

    Capodecina

    Joined: 21 Oct 2003

    Posts: 13,608

    Location: Back with a Vengeance.

    i disagree.
    there is money in used cars FULL STOP.
    exactly how much depends on which section of the market you target but you can easily make more than the national average wage by selling a couple of sub-1500 quid cars per week.
     
  14. Morba

    Caporegime

    Joined: 7 Mar 2003

    Posts: 28,189

    Location: Krispy Kreme drive thru

    plenty of money in it if you choose the right cars and the right location.

    you would need a nice turnover tho, even if it meant taking bought cars to auction to be sold.
     
  15. The_Dark_Side

    Capodecina

    Joined: 21 Oct 2003

    Posts: 13,608

    Location: Back with a Vengeance.

    as we said last time, Portugal is in almost all cases the cheapest place to buy a new car in the EU,but there are some language and legal barriers to overcome.
    Holland however makes the process a total duck shoot and you can save a LOT of money.
     
  16. great advice

    Mobster

    Joined: 20 Oct 2003

    Posts: 2,872

    Location: Manchester

    Ive been involved with import/export before and its more hassle than its worth, lots of money to be made but its not for me :)

    Tom Hartley isnt he that kid who passed his test in an f40? hardly a good example considering he was born into considerable wealth :)

    So where do folk think there is the biggest market or money? im thinking cheap run abouts for new drivers and ladies? they seem to hold there value more at the lower end of the market more than cars like mondeos/vectra etc.

    What about the prestige end of the market? BMW/merc etc rather than Ferrari etc :D
     
  17. panthro

    Capodecina

    Joined: 19 Nov 2004

    Posts: 11,884

    Location: Wokingham

    tom hartley is his father. Who set up his car business from scratch. His son co runs the business with him.....its not fair! :)

    I wouldnt say there is money in it full stop......you need to have some sort of business acumen and know what you are looking for/doing. By saying there is money in it full stop is saying that any moron can go out, buy a car and make money on it, which isnt really the case.
    I would say, if you know what you are doing, there is definitely money in it.
     
  18. Zip

    Capodecina

    Joined: 26 Jun 2005

    Posts: 20,224

    Location: Australia

    I would say the Prestige would make the most money in the right area. What you could do is have one car a lot and split it into to parts, Prestige in one half and run abouts in the other :)
     
  19. great advice

    Mobster

    Joined: 20 Oct 2003

    Posts: 2,872

    Location: Manchester

    I currently run my own very successful business and have a top accountant, in my spare time i build cars and buy and sell the odd cheapy. I know a lot of people in the industry who could help me out too, so i think i have the skills needed to take something like this forward.

    Just dunno what area to go for :confused:
     
  20. The_Dark_Side

    Capodecina

    Joined: 21 Oct 2003

    Posts: 13,608

    Location: Back with a Vengeance.

    depends.
    how much of a percentage of your income do you want this to provide?
    how much capital do you want to invest?
    how much effort do you intend to dedicate to this side of your business?