HOW TO MAKE MONEY BUYING & SELLING USED CARS & TRUCK

HOW TO MAKE MONEY BUYING & SELLING USED CARS & TRUCK

Today, with the average consumer now spending up to $16,400 for a new car, consumers realize

the importance of investing in lower-priced used cars. With millions of buyers entering the used

vehicle market every year, a wealth of opportunities exists for anyone who is looking for extra

income, or a new and lucrative full-time career. The key to making money in this business is to buy

low, and sell at a huge profit! This report will show you how to get started down your road to riches!

OPERATING YOUR OWN USED CAR BUSINESS

The goal of many people is just to make a little extra income. If you consider $1,000 to $3,500 or

more for a single sale in one month to be "extra income," you could easily make that in your spare

time without much effort.

On the other hand, you may be one of those people who want to be their own boss. While it's true

that the risks are often greater than if you just worked for someone else, it's just as true that risks

and rewards go hand in hand. If you're willing to take the plunge, the potential returns are also

greater. If you have a bit of an adventuresome spirit and confidence in your own skills and

abilities, operating your own used car business may be the ideal way for you to make big, big

money!

ADVANTAGES OF OWNING YOUR OWN BUSINESS

The opportunity to express your own ideas and do things exactly as you want is among the primary

advantages of operating your own business. The challenge and excitement of running your own

operation also ranks high on the list. Another big advantage is that you will receive all the profits

generated by your time and efforts. Then the potential exists to develop a part-time business into a

full-time career that produces an income you never thought possible.

SKILLS & ABILITIES NEEDED

The same types of personal skills that are necessary to successfully work for someone else are

also required to be successful in working for yourself. Personal skills would involve being

conscientious, dedicated, determined, and persistent, in addition to possessing good human

relations' abilities.

There is also another type of skill that is necessary that involves the ability to manage and organize

your activities, and possibly those of others if you hire car salespeople to work for you.

This skill should be taken very seriously, because it is these skills that can cause one business to

be a huge success while the other is a total failure.

Lastly, you will need technical skills. These are the skills that include the knowledge to perform the

activities involved in the used car business. It is this combination of technical, personal, and

management skills that will make your operation successful.

GETTING YOUR USED CAR BUSINESS ESTABLISHED

Whether you are operating your business on a part-time basis, people will expect you to provide

the type of service any consumer expects. They will also associate the type of service they can

expect with the image you create for your business. This image will be impressions you make on

others.

For example: Will people perceive you as handling high-, medium-, or low-priced vehicles? Will

your used cars appeal mostly to the rich, the poor, or the middle class? Do you sell something for

everyone or do you specialize? (Just pickups, just vans, etc.)

Any positive image is fine, as long as you are consistent in everything you do within the scope of

that image. The image you create will largely set the tone for all your business activities, including

selection of a business location, type of vehicles handled, prices charged, etc.

SELECTING A LOCATION

If you are going to buy one or two cars at a time for resale on a part-time basis, then working right

from your home shouldn't pose a problem for you. However, if you intend to eventually have a large,

full-time business operation, the most important ingredient that can lead to success or failure can

depend on your location. What constitutes a good location varies with the type of business. But in

the used car business it means being highly visible in a high traffic area and being situated so that

driving customers can get to you. In many cases, the location you consider ideal may not be

available or if it is, the cost may not be practical. In that event, you will have to do strong advertising

and promotion work to make customers aware of who you are, what you are selling, and where

they can find you.

Whether you select a location at your home or in a business district, you must make certain you

are operating within city and county zoning ordinances. Zoning ordinances are regulations

specifying what each parcel of property within a community can be used for. If the location you

decide on is not zoned for the type of business you want to start, you can appeal to the zoning

commission to obtain a "zoning variance." If approved, you would be allowed to use the property

for your business.

HOW TO LOCATE USED CAR SUPPLIERS

To get started in the "Buy-Low, Sell for Huge Profits" used car business, you will have to locate

suppliers. In some cases you will be able to buy directly from individual car owners. At other times

you will go to independent auction houses or attend U.S. Government Auction Sales where you

can often purchase vehicles for pennies on the dollar.

At independent auction houses vehicle owners have auctioneers sell their vehicle by getting buyers

who are at the auction house to bid against one another. Generally, there is a minimum bid set.

The person who offers the highest bid over the minimum set has the winning bid. The seller

however, also has the right to sell the vehicle below the minimum bid if he chooses. Incredible

bargains can be found at independent auction houses.

Independent auction house sleds take place throughout the U.S.A., many on a weekly schedule.

For additional information of auction house locations refer to your telephone directory under

"Auctions" or "Car Auctions," or write to:

National Auto Research N.A.D.A. Used Car Guide Co.

P.O. Box 7588400 West park Drive

Gainesville, GA 30503 McLean, VA 22102-9985

(404) 532-4111(703) 821-7193

(800) 554-1026 (Except Georgia)(800) 544-6232

(800) 523-3110 (In Virginia)

U.S. GOVERNMENT AUCTIONS

A wide variety of personal property either no longer needed or seized by the Federal Government

is periodically placed on public sale.The Department of Defense and the General Services

Administration are the principal Government sales outlets for surplus property. As items become

available for public sale, catalogs and other types of announcements are distributed to people who

have expressed an interest in bidding on the types of property being offered.

Sales generally are on a competitive bid basis, with the property being sold to the highest bidder.

Among the many thousands of items sold are automobiles and other vehicles of every imaginable

make and model. In fact, tens of thousands of vehicles are sold by the government at public

auctions throughout the country every year!

How can there be so many vehicles for sale? Because the Government is so huge that it's difficult

to even comprehend just how much property is amassed for resale. In fact, the government seizes,

confiscates, and forecloses on property that results in many millions of pieces of property every

year, and the numbers continue to grow.

Incredibly, the government isn't like a private business that is interested in making a profit on items

it sells. The government is mostly interested in eliminating the enormous stockpiles of seized and

surplus vehicles and other properties. As a result, many thousands of vehicles are offered to the

public through government auctions at a fraction of their actual values. This is where you can buy

just about any model of vehicle you want at super-huge savings, and make incredibly-high resale

profits.

HOW TO GET ON THE GOVERNMENT'S VEHICLE AUCTION MAILING LIST

Both the Government Services Administration(GSA) and the Department of Defense maintain

mailing lists on persons interested in seized and surplus property sales. People on these lists are

sent catalogs and other sales announcements in advance of sales and are given the opportunity to

inspect the vehicles and other property and submit bids.

Each GSA regional office maintains a mailing list for sales of property located in the geographical

areas it serves. For general information about sales conducted by GSA, or to be placed on the

mailing list, write to any of the following addresses.

The Department of Defense maintains a centralized mailing list for the sales of its property located

in the United States. The Defense Surplus Bidders Control Office, Defense Logistics Services

Center, Federal Center, Battle Creek, Michigan 49016, maintains this list.

GSA CUSTOMER SERVICE BUREAUS

NATIONAL CAPITAL REGION REGION 6

GSA Customer Service Bureau GSA Customer Service Bureau

7th and D Streets, SW1500 E. Bannister Road

Washington, DC 20407 Kansas City, MO 64131

Serves: District of Columbia,Serves: Iowa, Kansas, Missouri,

nerby Maryland & Virginia Nebraska

REGION 1 REGION 7

GSA Customer Service Bureau GSA Customer Service Bureau

Post Office & Courthouse 819 Taylor Street

Boston, MA 02109 Fort Worth, TX 76102

Serves: Connecticut, Maine, Massachusets,Serves: Arkansas, Louisiana, New

New Hampshire, Rhode Island, Vermont Mexico, Oklahoma, Texas

REGION 2 REGION 8

GSA Customer Service Bureau GSA Customer Service Bureau

26 Federal Plaza Bldg. 41-Denver Federal Center

New York, NY 10278 Denver, CO 80225

Serves: New Jersey, New York, Puerto Serves: Colorado, Montana, North

Rico, Virgin Islands Dakota, South Dakota, Utah,

Wyoming

REGION 3

GSA Customer Service Bureau REGION 9

Nineth & Market Streets GSA Customer Service Bureau

Philadelphia, PA 19107 525 Market Street

Serves: Delaware, Pennsylvania,San Francisco, CA 94105

Maryland, Virginia, West Virginia Serves: Samoa, Arizona, California,Guam, Hawaii, Nevada

REGION 5

GSA Customer Service Bureau REGION 10

230 S. Dearborn Street GSA Customer Service Bureau

Chicago, IL 60604 Auburn, WA 98002

Serves: Illinois, Michigan, Minnesota,Serves: Alaska, Idaho, Oregon,

Ohio, Wisconsin Washington

HOW TO DETERMINE THE VALUE OF USED VEHICLES

Whether you attend auctions or purchase a vehicle outright from a seller, you must know what it is

worth. The best way to determine a vehicle's average market trade-in or wholesale value, average

loan or average retail value is, is to subscribe to the N.A.D.A. Official Used Car Guide, published

monthly by the National Automobile Dealer's Used Car Guid Co., 8400 West park Drive, McLean,

VA 22102-9985. Write for current subscription rates.

N.A.D.A. also publishes guides as follows: Official Older Used Car Guide...Official Wholesale

Used Car Trade-in Guide...Official Title & Registration Book...Official Recreation Vehicle

Guide...Official Motorcycle/Snowmobile/ATV Personal Watercraft Appraisal Guide...Official

Smaller Boat Appraisal Guide...Official Larger Board Appraisal Guide...Official Mobile Home

Appraisal Guide and the Mobile Home Appraisal System. A weekly used car market guide is also

available from: National Auto Research, P.O. Box 758, Gainesville, GA 30503. Write for current

subscription rates.

REGIONAL CLASSIFICATIONS

The average values listed in the N.A.D.A. Official Used Car Guide are based upon reports of

actual transactions by dealers and auction houses throughout each area for which a guide is

published. A used car guide-book normally includes 1)Domestic Cars; 2)Imported Cars; and

3)Trucks. Manufactures' names are listed alphabetically.

SECURING LICENSES AND PERMITS

City, county, state and/or federal licenses or permits are often required before entering a particular

business or service operation. Often, these are issued solely as a fund-raising measure, and are

therefore easy to obtain simply by submitting a fee.

On the other hand, licensing is also used as a method of regulating the competency of those

entering a particular field and to protect the public from shady operators. In some cases an exam

is administered, and moral and financial requirements may need to be met as well.

In the used-car business, most states require that you obtain a dealers license if you are buying

and selling vehicles for the purpose of making a profit. However, you are not required to apply for a

license if you only make an isolated or occasional sale. You are not considered to be in the

business of selling motor vehicles in that event. "Isolated or occasional sales" in many states

means "the sale, purchase, or lease of not more than five motor vehicles in a 12 month period".

Once you begin to sell more vehicles for profit than is allowed by your state law on an annual basis,

you should apply for a Dealer's License by contacting your State Department of Public Safety or

Department of Motor Vehicles.

Check with your attorney or other city officials to determine what licenses and permits are needed.

Simply starting up a business without having the proper authorizations can result in severe

penalties, and you could be forced to discontinue operations.

Many states, and some cities and counties, require that sales taxes be collected. The stated sales

tax permit is available from the State Department of Revenue, City and county permits are

available from the tax department in those jurisdictions.

Even though a certain amount of "red-tape" must be tolerated to obtain some licenses and

permits, this is usually a one-time occurrence. Then, it's just a matter of simply submitting an

annual renewal fee.