What else do you do

[kj9876]

First step is to find a salvage dealer in your area. I would start by Googling "salvage title" and "whatever is the largest local metropolitan area near you" and sort through the listing looking for salvage dealers. Or search for "salvage title" in craigslist car listing. I've found a few I deal with within 50 miles of my home that I've been buying from for up to 20 years. I'd like to buy at the auctions or direct from insurance companies buy I don't have a dealer's license.

In my case, the salvage cars I buy usually come with a salvage title. I repair the cars and convert the title to a "reconstructed title" at the local motor vehicle. (You can't register and drive a car with a salvage title but you can register and drive a car with a reconstructed title) The terms "salvage title" and "reconstructed title" might be different in you state but these are the terms used in PA/NJ where I am. Occasionally, the car will come with a standard "clean" title.  This is NOT "washing titles" ...this is following the standard lawful procedure in your state to repairing a salvage vehicle to driveable status.

Before purchasing, make sure you FULLY understand the DMV procedure IN YOUR AREA for converting a salvage title. The last thing you want is to try and convert the tile and find out you never took the "before" pictures your local DMV requires or you didn't get VIN numbers from major used parts you bought or some other such BS required by your local DMV. Know the rules and follow them.

I sell the high end used cars by posting on craigslist and vehix as well as advertising in the strongest local newspaper. Some people get car loans, some people have cash, some people ....I don't know or care where they get the money. 

Cheaper cars are easier to sell but have lower profit and require around the same amount of work, just like a  "McMansion " will generally have higher profit potential than a trailer home. I do my best to ensure good profit the same way I do when buying a house..."you make your money when you buy" by paying the lowest price possible. I try to ensure a quick easy sale by buying cars that I believe are currently in "hot demand" with as low miles as possible, putting them into absolutely PERFECT mechanical, body,  and astetic  condition, and selling slightly below the competition.

I generally don't flip cars with no work because I believe in today's market of wide spread easy internet advertising, the market generally works out a fair price for the item being sold and it's hard to buy below market (not impossible, just hard). I build the value into the cars I sell.


Bluemoon,

I thought you had an MBA..."Why would a person pay $3000 for a car but not $4000?".....to save money!  I've always looked at it the other way, Why in God's name would I pay $4000 if I can simply shop around and pay $3000.  You know...efficient market place, competition driving down prices, supply and demand, and all that other Adam Smith, MBA type mumbo jumbo.

jmd_forest

jmd,
 Do you do all the work yourself? If so, would there be any profit in it if you had to pay someone to do it?

[jmd_forest]

I do all the work myself...self taught mechanic, welder, bodyman, painter.  There would be a much smaller profit (25% of my expected profit maybe) if I had someone else do the work. I like to keep the extra profit myself as well as have that profit spread in case I screw something up, find more damage than I expected, or need to drop the price because of outside economic influences (Cash For Clunkers killed the used car market).

Bluemoon,

I am also an engineer (EE) with a Master's in Engineering Management. I don't know why you think a $2000 car will arbitrarily sell for $3000, especially without any value added. That's a 50% markup . I just don't see it unless you have a hot market and no competition. That being said, car buyers may want a 99 Mazda but they'll generally buy the best value car in the style they like regardless of brand so generally there's a lot of competition.


However, I say give it a whirl and let us know how it works out for you.

jmd_forest

[bikecactus]

I freelance, I work as a mystery shopper, I have a brick and mortar store, and I also have ebay. Ebay isn't my big money maker because most people who are on it are only there to look for deals. So I can't sell my stuff at retail price at least. I gotta give them a good deal, otherwise, buyers would think they're losing money from the shipping and handling.