Any Type Of Advice On Buying And Selling Cars ?

[Rajitha4774]

Hey guys ! Please help me out.

My dad is planning to buy me a car like a Axio hybrid, but im not really interested in getting my own vehicle right now. So I've decided to use that money and start buying and selling vehicles. I just want to know you guys opinions, what cars have the most demand and fast moving, prices and how do I bargain from home used vehicle sellers? please give me all you're advice which I need to know to before I start this

Thanks, I will appreciate any type of advice

[Watchman]

Firstly, you have to realize you can't start a whole business with the cost of just one car. And secondly very risky. You sound very young. If you don't mind me asking, how old are you and what do you do right now? (cos your age, experience, and the amount of time you can put into this makes a big difference)

You will certainly be able to buy a car and sell a car, but the objective is to make a profit, right? So you have to ask why would someone pay you more for the car when they could have paid less and bought it from the guy you bought it from? If you're hoping that the car will simply appreciate in time then you're in for a bad time/business. You can't expect to profit with ZERO value addition.

So from what you say I take it you're working with a budget of about 4.0-5.0 million? Your best bet would be to buy toyota corolla or a nissan sunny (simply because they are fast moving) from maybe the early or mid 1990. Buy a cheap one that needs some tinkering / painting / engine works and fix it up. Being a mainstream car like a corolla/sunny from that generation it wont have too many fancy electronics so the fix should be fairly easy. Once you've done that the car can easily be sold for much more. Price it accordingly, and sell it. You can them move on to the next car, and with each car you'll become better at doing up the car and you'll be able to take on larger projects and more complex ones. Pretty much the wheeler-dealer business model.

[Rumesh88]

+1 to Watchman's reply above.
You need to assess the current market trend for common cars if you intend to deal with them. Whether it is bullish, bearish or just lying dormant. Then your value addition definitely matters. To me the obvious value addition that you may have right now is the "cash in hand". If you have that, it is your strongest bargaining point. Wish you good luck with your venture and you certainly need it!

[rover]

What ever business you intend to start do it honestly. Good luck!

[Crosswind]

You can't just 'start a business' cos u like it and looks to be profitable. Any type of business needs to be learned the hard way. From what I see, u r better of working in an office if this is the kind of questions you have, unless of course u r willing to work your ass off and lose some money in the first few deals until u get things right.

[MV-5]

to start your own business, the most important factor is "domain knowledge" what you are trying to get through a public forum which is not practical.

[Hoonigan]

Like many have pointed out, it takes a trained eye to notice what is wrong with a car and to know what needs to be done to fix it. If you wager your new car's worth on your first attempt and fall for a problematic car, your venture will be a stillbirth.

But don't give up. Maybe start small so that you get a feel for how it goes. Something in the range of 3-5 hundred thousand. Something a bit old, a japanese maybe. This way, your risk is limited. The cars in this range are rather simple machines. Fix it up where needed and flip it for, albeit small, profit. After you do one or two you will get an idea of the process. Then you can decide if it's too much work for you or you have a knack for it. Good luck!

[liyan]

Buy a land. You'll never lose!

Edited February 5, 2014 by liyan

[kirala2]

Reminds me of the TV series "Wheeler Dealers - Trading Up" where Mike starts off with a Maruti Alto in India for a $3000 budget and eventually trades up to a Porsche 911........for $25,714.......in UAE

[Magnum]

or why not start as a middle man?

[Watchman]

Reminds me of the TV series "Wheeler Dealers - Trading Up" where Mike starts off with a Maruti Alto in India for a $3000 budget and eventually trades up to a Porsche 911........for $25,714.......in UAE

Thanks for that bit of info. I just started watching the series on youtube, but to my disappointment it sucked balls. They do nothing to the car except wash a car or sell it in a more upscale location. I guess it's not impossible nor dishonest, but all you do is take advantage of someone's unfamiliarity of the market. In my book it's not a very moral thing to do.

But I'll hold m judgement till the OP tells us a bit more about himself and his intentions.

[kirala2]

They do nothing to the car except wash a car or sell it in a more upscale location.

That is exactly what a lot of "buying and selling" types do in Sri Lanka as well. Other than for a few cosmetic touch-ups to catch the eye of a prospective buyer, they almost never add any real value to a vehicle they buy-and-sell.

Edited February 6, 2014 by kirala2