All successful businesses are based on the
simple principle - buy something cheap - then
sell it at a mark up. Simple, in theory -
but rarely simple in practice. One of the
major entrepreneurs 'headaches' can be where
to get goods to sell at a cheap enough price
to allow a large enough profit.
Fortunately, there is a way that problem can
be solved - easily. Quite simply, auctions
offer you the chance to buy all sorts of
goods at under market value. It's then a
simple matter to resell them, perhaps
immediately, at in excess of market value.
A clear, quick profit!
Auction buying is not just an aid to those
already in business. There are many cases of
people who do nothing but buy 'anything' at
auction and resell for a profit.
Just consider, it only needs a few items bought or
sold a week with a few hundred pounds mark up
on each to build a considerable income. You
can be an auction entrepreneur in just part
time hours.
Of course, auctions are still shrouded in
some mystery. That's what helps to keep the
undetermined away from the profits. But,
they are generally simpler to follow than
they were. With a few visits you can be
quite experienced at 'snapping up' bargains
at auction and reselling for an immediate
gain.
Really, it matters not what you buy. Just
consider an auction as a place where you can
get things for a lot less than they are worth.
That's nothing short of an instant money
making opportunity!
Sheer Potential
The great thing about auction trading is
that you can actually prove the potential to
yourself before actually spending anything.
Just go along to a few local auctions.
Auctions are mainly a quick way of selling
goods for vendors. And, they are also a way
of selling things where any other techniques
e.g. press advertising would be difficult.
Because of this the prices are invariably
far less than market price. Auctions are
rarely an attempt to get more for an item
than it is really worth, despite appearances
to the contrary. But, of course, you would
always guard against being over charged.
Discounts at auction vary according to the
type of goods sold, type of auction, type
and number of crowd - even things like the
weather. In some cases auction discounts
have been quantified at as much as 80%!
Rarely would the saving fall below 10% - but
a reasonable ready accessible saving would
be 20-30%.
Quite simply, the auction potential means
you might buy an item (say a car) at œ1,000
one day. Then, the next day sell it for at
least œ1,200 to œ1,300. That's a
considerable, instant profit for hardly any
work; a way of making very quick extra cash.
How to find an Auction
Auctions are held the length and breadth of
the country almost every day of the week.
So, there will always be a chance to make
money. It's not always obvious which are
the best to attend though, and this will
need some market research on your part.
There are directories available listing
auctions and auctioneers. But, the cheapest
way of finding them is to look in the Yellow
Pages at your local library. Check the index
to see what different categories 'auctions'
might fall into.It is wise to visit auctions
before you even consider buying. Because,
although they offer the same service they do
work on different principles. Check, by
observation, that the auction is fair.
Auctions are, of course, working to get
highest prices for sellers - but they should
not be biased.
Good auctions should display goods prior to
the sale for inspection. And, they should
issue a catalogue or list of what is on offer.
The buyer accommodation should offer a clear
view of the auctioneer during bidding. More
importantly, the rules of the particular
event should be displayed on site - and
followed by staff at all times.
Do ensure the auction you attend is fair to
all buyers, and not favouring the 'regulars'.
Also that the price is not artificially
inflated by the auctioneer - it should be the
demand that sets the price. Most auctions
are honourable organisations, but there could
be exceptions!
Do stay behind after an auction has finished.
This gives a chance to see if those who have
bought are pleased with their purchases - or
if any 'little disputes' arise. A good guide
to finding the best, most honest and most
profitable auctions.
Successful Buying at Auctions
When you have gained a little experience at
auction you can venture to make your first
deal. And, there's no reason why it should
not be very profitable.
Do remember that most auctions demand cash
on sale. So, take an appropriate amount
with you. If this is risky ask for a
bankers draft at your bank. This is really
a cheque that cannot be stopped and most
auctions will take them.
At auction, goods are sold in lots. So, you
will need to decide which interests you. It
is a good idea to select 'substitutes' in
case your choices are bought by someone
else.
To start bidding, the auctioneer will
normally set a price. This could be far too
high - or far too low. So, wait until a few
bids have followed. You can then decide
whether the price will allow you sufficient
sale margin and start your own bidding. Each
bid may rise in œ1, œ10, œ100 or larger
units. So you have to keep a check on the
total carefully.
There is a good deal of showmanship involved
in auctioning and you'll certainly need
all your wits about you. Perhaps the main
aim is to ensure you only buy at good low
prices. Fall out of bidding if the price is
getting too high.
Although experienced bidders may make
strange signals to the auctioneer there is
nothing wrong with making your bid quite
clear. You can pick up the 'tricks' that
others use in the future.
When the bidding slows and the appropriate
sum is reached the auctioneer will proclaim
the classic 'going, going, gone'!
When the hammer falls the item is sold at the
final price.
Most auctions will demand a cash deposit at
the fall of the hammer. The only exception
being if they require all bidders to register
and lodge a deposit before the auction. The
balance must be paid and your purchase
removed within a certain time limit.
Note that auctions operate on a 'sold as
seen' basis and rarely give refunds. Only a
few give a guarantee against faulty goods.
So, bid enthusiastically, but with care
taking professional guidance as appropriate.
For best results you should arrange to
process and resell your purchase immediately.
Don't sell at auction though - the profits
won't be enough. Best profits are perhaps to
be found through newspaper advertisements.
Then - when you've cashed your purchase in
and made your profit why not reinvest the
proceeds in an even bigger auction deal?
Some possibilities
Following you will find a list of the proven
opportunities auctions offer:
- Cars. One of the biggest auction money
makers; huge discounts. But, do buy carefully
as you have little protection against faulty
cars, although most auctions have warranties
against stolen cars. Follow all vehicle
regulations - a car dealing licence may be
needed in some areas.
- Household effects. Ideal place to start in
auctions, buying up household items. Often
valuable items can be bought for pence in
'job lots'. Sometimes changes to pick up
antiques.
- Stock. Bankrupt trade stock, discounted
lines, etc. are frequently sold off by
auction. There are good opportunities here
to buy up lines and then offer to traders or
sell via market stalls etc.
- Tools/Plant. Items from the trade are
frequently sold off by auction. This may
include new and used items which can be
bought up and then sold back to the trade.
Do check items offered, as with many other
auctions, it may be up to the bidder to
check whether they are working or not.
- Farm Stock. Another popular auction line.
But it is probably not suitable unless you
have some experience in this area.
- Property. A real potential winner with
huge discounts available on property of all
types. Do take legal advice, and advice from
a surveyor/valuer though.
- Art and Antiques. Offers profits to beat
them all. Needs a little study of the
business - but there are smaller markets you
can try and succeed in. Not all auctions
sell 'old masters' for millionaires only
Always remember of course that auctions do
not always fall neatly into categories. Some
may be a combination of several types - or
completely new auction lines. Just keep
your eye out for any auction - because it's
almost always a chance to enjoy huge price
cuts!
Auction Success
Auctions are a unique opportunity in a way.
Because, unlike other ventures you can't
guarantee a certain trade week in and week
out. Remember though, this means your income
is limited by virtually nothing!
It does not matter how little you know about
auctions - or what you buy. Simply consider
them as a way of getting attractive
merchandise at very low prices indeed. A
source only open to the most enterprising of
people.
'Buy cheap, sell dear' is a principle that
means nothing less than complete success.
Exploit that principle and let auctions make
money for you.
HOW TO START A MONEY BROKERAGE BUSINESS OF YOUR OWN
... and earn œ100,000 a year, collect
large fees helping others, and borrow all
the money you need ...
Becoming a Money Broker is one of the easiest
and most rewarding endeavours available.
Virtually anyone can become a Money Broker
with the smallest investment.
You can start this business on a part time
basis, and earn large "Finders Fees", or open
your own office and work full time with
absolutely unlimited income potential.
Until very recently, the "secrets of money
brokering" were closely guarded and known
only to a few select bankers, investment
corporations, and business consultants.
No other business offers the potential income
figure for so little investment.
As an example, starting with less than œ100,
some Money Brokers have made œ100,000 in
their first year of business!
This is the ideal way for a man or woman to
supplement his or her present income, or
change professions after a period of time.
It is an absolute "dream-come-true" for the
semi-retired, or retired office worker.
There is hardly another business requiring
less than œ100 in start up costs that can
put you into a six figure income bracket so
quickly. None of them give you the power, prestige,
or status - the respectability in your
community - equal to that of a Money Broker.
To get started, you'll need stationery,
envelopes, and business cards with your own
letterhead. Be sure to include your phone
number. Also,have copies made of your Fee Agreement.
We have presented a typical Fee Agreement
Form (which you may duplicate after
eradicating the instruction we have given in
the blanks).
As we have stated, the investment in this
business is small; when you have your
stationery, envelopes, cards and the Fee
Agreement forms in hand, you have spent part
of it.
The other part will be discussed now, because you have to "find" both borrower and lender to really get underway.
Once you have your "working paper", you will
run some advertisements in your local paper
under the headings "Money to Loan" or
"Business Opportunities".
Typical ads might read:
MONEY AVAILABLE FOR BILL PAYMENTS, HOME
REPAIR, BUSINESS EXPANSION, ANY WORTHWHILE
PROJECT. CALL JOHN JOHNSON 12345. (This ad
would be used to "pull" borrowers).
BUSINESSMAN NEEDS CAPITAL FOR EXPANSION.
EXCELLENT COLLATERAL AND REFERENCES. CALL
JOHN JOHNSON AFTER 4pm 12345. (This one would
be to attract lenders).
In response to the calls or letters from
prospective clients, you will have to be
prepared (really be prepared by practising)
with the proper answers and sales pitch -
i.e. (to the prospective borrower):
"Yes, this is John Johnson. Thank you for
calling. First I'll explain how we operate.
I'm a money broker. I bring you, the
borrower, and the lender, together. I have
many different money sources available -
banks, insurance companies, private
investment groups of doctors, dentists,
lawyers, and other professional people. My
sources are in business to make money by
lending out money. Let's see - I need to
determine your needs and the purpose of the
loan in order to properly prepare the
necessary financial papers for formal
presentation to the best suited lenders. I
may have to take your loan request to as
many as ten different lending groups in
order to get the loan for you. Once I have
an approval on your loan request, I'm paid
anything between 2% to 10% of the total loan
figure - important for you to remember,
though, is that I don't get paid unless I
get the loan for you. I do, however, charge
a œ100 (or œ25 or œ50) non refundable
Application Fee to cover my expenses in
preparing your request for loan papers and
presenting this portfolio to the lenders.
In a nutshell, that's how these types of
loans are negotiated.
Now then, how much money will you need? (Note that five
successful registrations per week could
bring in between œ125 and œ500 each week).
This is where you begin to acquire the
information you are going to need to proceed
- the amount of money needed - purpose of
the loan - terms borrower wants for
repayment - and a profile of his background;
education, employment record, date of birth,
marital status, general health, and number
of dependants.
Next you type this information into a proper
format, assemble it into a portfolio with a
cover letter, and present to at least five
different lenders for their consideration.
When the loan is granted, you collect your
Broker's Fee - a pre-determined percentage
of the total loan figure.
_____________________________________________
(TYPICAL FEE AGREEMENT FORM)
YOUR NAME AND ADDRESS
AGREEMENT FOR FINANCIAL SERVICE
The Undersigned
(borrowers name)
hereby appoints
(your name)
as Agent, and authorises him to submit to
lenders financial data and information
supplied by the borrower, for the purpose of
the lender of making a loan or investment
direct to the undersigned.
The undersigned agrees to pay to
Your Name
of the amount of the loan or investment
obtained.
The undersigned hereby pays to (your name)
a non-returnable fee of œ ...... for the
time involved to appraise the feasibility of
loan requested; this fee is separate from
any other fees due if the loan is obtained.
More on this topic
large fees helping others, and borrow all
the money you need ...
Becoming a Money Broker is one of the easiest
and most rewarding endeavours available.
Virtually anyone can become a Money Broker
with the smallest investment.
You can start this business on a part time
basis, and earn large "Finders Fees", or open
your own office and work full time with
absolutely unlimited income potential.
Until very recently, the "secrets of money
brokering" were closely guarded and known
only to a few select bankers, investment
corporations, and business consultants.
No other business offers the potential income
figure for so little investment.
As an example, starting with less than œ100,
some Money Brokers have made œ100,000 in
their first year of business!
This is the ideal way for a man or woman to
supplement his or her present income, or
change professions after a period of time.
It is an absolute "dream-come-true" for the
semi-retired, or retired office worker.
There is hardly another business requiring
less than œ100 in start up costs that can
put you into a six figure income bracket so
quickly. None of them give you the power, prestige,
or status - the respectability in your
community - equal to that of a Money Broker.
To get started, you'll need stationery,
envelopes, and business cards with your own
letterhead. Be sure to include your phone
number. Also,have copies made of your Fee Agreement.
We have presented a typical Fee Agreement
Form (which you may duplicate after
eradicating the instruction we have given in
the blanks).
As we have stated, the investment in this
business is small; when you have your
stationery, envelopes, cards and the Fee
Agreement forms in hand, you have spent part
of it.
The other part will be discussed now, because you have to "find" both borrower and lender to really get underway.
Once you have your "working paper", you will
run some advertisements in your local paper
under the headings "Money to Loan" or
"Business Opportunities".
Typical ads might read:
MONEY AVAILABLE FOR BILL PAYMENTS, HOME
REPAIR, BUSINESS EXPANSION, ANY WORTHWHILE
PROJECT. CALL JOHN JOHNSON 12345. (This ad
would be used to "pull" borrowers).
BUSINESSMAN NEEDS CAPITAL FOR EXPANSION.
EXCELLENT COLLATERAL AND REFERENCES. CALL
JOHN JOHNSON AFTER 4pm 12345. (This one would
be to attract lenders).
In response to the calls or letters from
prospective clients, you will have to be
prepared (really be prepared by practising)
with the proper answers and sales pitch -
i.e. (to the prospective borrower):
"Yes, this is John Johnson. Thank you for
calling. First I'll explain how we operate.
I'm a money broker. I bring you, the
borrower, and the lender, together. I have
many different money sources available -
banks, insurance companies, private
investment groups of doctors, dentists,
lawyers, and other professional people. My
sources are in business to make money by
lending out money. Let's see - I need to
determine your needs and the purpose of the
loan in order to properly prepare the
necessary financial papers for formal
presentation to the best suited lenders. I
may have to take your loan request to as
many as ten different lending groups in
order to get the loan for you. Once I have
an approval on your loan request, I'm paid
anything between 2% to 10% of the total loan
figure - important for you to remember,
though, is that I don't get paid unless I
get the loan for you. I do, however, charge
a œ100 (or œ25 or œ50) non refundable
Application Fee to cover my expenses in
preparing your request for loan papers and
presenting this portfolio to the lenders.
In a nutshell, that's how these types of
loans are negotiated.
Now then, how much money will you need? (Note that five
successful registrations per week could
bring in between œ125 and œ500 each week).
This is where you begin to acquire the
information you are going to need to proceed
- the amount of money needed - purpose of
the loan - terms borrower wants for
repayment - and a profile of his background;
education, employment record, date of birth,
marital status, general health, and number
of dependants.
Next you type this information into a proper
format, assemble it into a portfolio with a
cover letter, and present to at least five
different lenders for their consideration.
When the loan is granted, you collect your
Broker's Fee - a pre-determined percentage
of the total loan figure.
_____________________________________________
(TYPICAL FEE AGREEMENT FORM)
YOUR NAME AND ADDRESS
AGREEMENT FOR FINANCIAL SERVICE
The Undersigned
(borrowers name)
hereby appoints
(your name)
as Agent, and authorises him to submit to
lenders financial data and information
supplied by the borrower, for the purpose of
the lender of making a loan or investment
direct to the undersigned.
The undersigned agrees to pay to
Your Name
of the amount of the loan or investment
obtained.
The undersigned hereby pays to (your name)
a non-returnable fee of œ ...... for the
time involved to appraise the feasibility of
loan requested; this fee is separate from
any other fees due if the loan is obtained.
GET STARTED IN CAR DEALING
A VERY OLD BUSINESS
Car trading is one of the oldest business ideas. It still
maintains it's appeal. But, although many people aspire
to such a business, few actually start. It's not really a table
top type business, but it is something that you can start
with not too much difficulty if you sketch out a basic plan.
Needless to say, there's plenty of demand for car trading.
Millions of potential customers every year! The big
franchised dealers have got all the big opportunities
cornered, but the thing to do is to look out for riches
where the small trader can begin. Often, it's not necessary
to be involved in any mechanical work at all.
SETTING UP
Unfortunately, car trading is not a business where you can
start with a few pounds capital. You're going to need
some investment. That said, it can be less than you might
think in the right circumstances. œ500 would be sufficient,
but more would obviously be helpful.
A few car dealers have started by re-selling their own car
for a profit. And, depending on how attached you are to it,
it can be a possibility.
You can certainly work from home, but a telephone will
be essential.
When working from home you should be very careful not
to make it obvious that you are dealing in cars. It's not
strictly allowed under planning regulations. You won't
generally cause any problems if you only handle one
vehicle at a time, which is quite enough.
Consider the legal implications of car trading. You'll
need appropriate insurance to drive all cars - a special
trader's insurance is available. Also, any cars you drive on
the road, or even keep there, will need insurance, tax and MOT, whether you are using them or not (but not if they are on your own property).Also remember that it's illegal to knowingly sell a car in an unroadworthy condition. Having an MOT certificate is some evidence of legal mechanical conditions, but not necessarily roadworthiness.Take some time to research the various ins and outs, because motor vehicles are some of the most regulated possessions ever.
BUYING STOCK
Once properly set up, you can start to think about buying a car to trade in. A single one will do to start. Now, there's no need to think about getting some old banger and 'doing it up' as some dealers do. In fact, unless you have mechanical knowledge, or will pay someone to work on cars, it's not a good idea unless you're absolutely sure of safety.On the contrary, it is possible to make money without doing anything to them. Perhaps just cleaning them up will be enough. Many established garages buy in cars and resell at an immediate profit. It's all down to careful buying. Basically, there are two ways of buying cars in for resale that involve minimum problems:
AUCTIONS
The 'easy' source of cars for resale. They are held all round the country. Check your local papers to see what's available.What you buy will depend on your finances. There are some auctions that sell only late model cars (up to four years old) where the vehicles are ready for instant resale.
This might be a possibility.
On the other hand, there are auctions which sell old cars
for œ20 and œ30 that are almost guaranteed to be worth
œ100 in a resale. Ideal for a bargain basement business.
But remember the safety problem.
It's best if you can take a mechanic to an auction, because
most don't offer much, if any, warranty. If you don't have
a vehicle mechanically checked, then you are buying very
much on a risk basis. With careful buying, auction cars will
virtually assure you of a profit. The amounts vary, but it's
usually 10% minimum (that's œ400 on a œ4,000 car) and
can be up to 30% sometimes. Start with one car to see
how it goes.
PRIVATE
The second method of getting in cars is to buy privately.
This is good if you have a sum of cash available to outlay
now.
Consider that all over the country there are people who
want to sell their cars quickly for cash. Maybe they need
the money or have brought a new car. If you can come
up with the money quickly, then you can get a big
discount.
Place advertisements for cars wanted in local newspapers.
Respond to enquiries. Remember that you're expecting
a big discount to give immediate cash.
Value the car by reference to advertisements in papers -
the going rate. Or try the 'Black Book' which is a trade
guide to prices available which you can get once
established.
Then think in terms of offering the seller about 30% off
the retail price and negotiate around that. I will work for
people who need fast money and don't want to wait.
Do what you can to ensure the vehicle is the property of
the seller. The registration document is not proof, but if
their address is on it, and they can prove that they live
there, it's a good pointer. But, of course, it is a risk.
As I said, you might get 30% off. So you can, with
aggressive negotiation, get a œ3,000 car for œ2,100!
DOING CARS UP
The best thing when operating as a small trader is not to
become involved with doing cars up. As I said, there's a
safety risk. If you have to pay someone else to do the
work this will probably make it uneconomic. Until you
are established and can afford to pay someone skilled,
then the most work you should do is to give your
purchases a thorough clean inside and out. Strip off
every bit of grime. It's amazing what value a good clean
up will add. You're probably talking in the region of
œ100 to œ200 for even a small car, and that's in addition
to the profits of buying cheap.
SELLING ON
Sell on your stock as soon as possible, because it's
depreciating all the time!
The best ways of selling trade cars are undoubtedly
classified advertisements in newspapers. Or, even
better, those regional car selling magazines. You can
advertise quite cheaply and they are usually circulated to
thousands of interested buyers in your area every week.
Don't rely on advertising in window cards, or Sunday car
sales and the like. It's almost certainly not worth it.
In selling, pitch your price quite high. Compare to
similar cars and pitch higher for the age and mileage.
Prospective buyers are almost certainly going to make
you an offer and it's nice to be able to accept this with
only a small cut in your profit margin!
Never part with your car against a cheque or a bank draft
that hasn't been cleared first. The only acceptable
payment for a client to take a car immediately is cash in
hand.
One snag is that traders usually offer finance facilities and
perhaps a warranty. It's possible to arrange both of these
in conjunction with finance companies and specialist car
warranty companies. In both cases, these companies will
provide you with finance for your customer (and pay you
a commission), or a warranty. Make enquiries. You might
have to be established for a while before they'll take you
on. If you can't offer a warranty facility make it clear that
your vehicles are sold 'as seen'. This will mean that your
prices are a little lower than garage type traders.
However, you still have a legal responsibility to the
customer that the car is roadworthy and as you described
it in any advertisement.
Because so many cars are on the market, selling is not
always easy. But the low prices you can buy cars for at
auctions, or for cash, mean that a profit, even if only
modest, is virtually assured in most cases, and that's
enough for a home business.
FINAL SUMMARY
Probably, most prospective car dealers and car
millionaires never get their ideas off the ground, because
they think too big. For example, they expect a posh
showroom and to be involved in mechanical repairs,
resprays, etc, is always necessary. The fact is, however,
you needn't be concerned with all this. It's much better to
start in a small way with just one car, and steer clear of
mechanical work and all the usual trappings of the car
trade. Obviously the rewards are less for a smaller
business, but they are still quite attractive for the effort.
Car trading is one of the oldest business ideas. It still
maintains it's appeal. But, although many people aspire
to such a business, few actually start. It's not really a table
top type business, but it is something that you can start
with not too much difficulty if you sketch out a basic plan.
Needless to say, there's plenty of demand for car trading.
Millions of potential customers every year! The big
franchised dealers have got all the big opportunities
cornered, but the thing to do is to look out for riches
where the small trader can begin. Often, it's not necessary
to be involved in any mechanical work at all.
SETTING UP
Unfortunately, car trading is not a business where you can
start with a few pounds capital. You're going to need
some investment. That said, it can be less than you might
think in the right circumstances. œ500 would be sufficient,
but more would obviously be helpful.
A few car dealers have started by re-selling their own car
for a profit. And, depending on how attached you are to it,
it can be a possibility.
You can certainly work from home, but a telephone will
be essential.
When working from home you should be very careful not
to make it obvious that you are dealing in cars. It's not
strictly allowed under planning regulations. You won't
generally cause any problems if you only handle one
vehicle at a time, which is quite enough.
Consider the legal implications of car trading. You'll
need appropriate insurance to drive all cars - a special
trader's insurance is available. Also, any cars you drive on
the road, or even keep there, will need insurance, tax and MOT, whether you are using them or not (but not if they are on your own property).Also remember that it's illegal to knowingly sell a car in an unroadworthy condition. Having an MOT certificate is some evidence of legal mechanical conditions, but not necessarily roadworthiness.Take some time to research the various ins and outs, because motor vehicles are some of the most regulated possessions ever.
BUYING STOCK
Once properly set up, you can start to think about buying a car to trade in. A single one will do to start. Now, there's no need to think about getting some old banger and 'doing it up' as some dealers do. In fact, unless you have mechanical knowledge, or will pay someone to work on cars, it's not a good idea unless you're absolutely sure of safety.On the contrary, it is possible to make money without doing anything to them. Perhaps just cleaning them up will be enough. Many established garages buy in cars and resell at an immediate profit. It's all down to careful buying. Basically, there are two ways of buying cars in for resale that involve minimum problems:
AUCTIONS
The 'easy' source of cars for resale. They are held all round the country. Check your local papers to see what's available.What you buy will depend on your finances. There are some auctions that sell only late model cars (up to four years old) where the vehicles are ready for instant resale.
This might be a possibility.
On the other hand, there are auctions which sell old cars
for œ20 and œ30 that are almost guaranteed to be worth
œ100 in a resale. Ideal for a bargain basement business.
But remember the safety problem.
It's best if you can take a mechanic to an auction, because
most don't offer much, if any, warranty. If you don't have
a vehicle mechanically checked, then you are buying very
much on a risk basis. With careful buying, auction cars will
virtually assure you of a profit. The amounts vary, but it's
usually 10% minimum (that's œ400 on a œ4,000 car) and
can be up to 30% sometimes. Start with one car to see
how it goes.
PRIVATE
The second method of getting in cars is to buy privately.
This is good if you have a sum of cash available to outlay
now.
Consider that all over the country there are people who
want to sell their cars quickly for cash. Maybe they need
the money or have brought a new car. If you can come
up with the money quickly, then you can get a big
discount.
Place advertisements for cars wanted in local newspapers.
Respond to enquiries. Remember that you're expecting
a big discount to give immediate cash.
Value the car by reference to advertisements in papers -
the going rate. Or try the 'Black Book' which is a trade
guide to prices available which you can get once
established.
Then think in terms of offering the seller about 30% off
the retail price and negotiate around that. I will work for
people who need fast money and don't want to wait.
Do what you can to ensure the vehicle is the property of
the seller. The registration document is not proof, but if
their address is on it, and they can prove that they live
there, it's a good pointer. But, of course, it is a risk.
As I said, you might get 30% off. So you can, with
aggressive negotiation, get a œ3,000 car for œ2,100!
DOING CARS UP
The best thing when operating as a small trader is not to
become involved with doing cars up. As I said, there's a
safety risk. If you have to pay someone else to do the
work this will probably make it uneconomic. Until you
are established and can afford to pay someone skilled,
then the most work you should do is to give your
purchases a thorough clean inside and out. Strip off
every bit of grime. It's amazing what value a good clean
up will add. You're probably talking in the region of
œ100 to œ200 for even a small car, and that's in addition
to the profits of buying cheap.
SELLING ON
Sell on your stock as soon as possible, because it's
depreciating all the time!
The best ways of selling trade cars are undoubtedly
classified advertisements in newspapers. Or, even
better, those regional car selling magazines. You can
advertise quite cheaply and they are usually circulated to
thousands of interested buyers in your area every week.
Don't rely on advertising in window cards, or Sunday car
sales and the like. It's almost certainly not worth it.
In selling, pitch your price quite high. Compare to
similar cars and pitch higher for the age and mileage.
Prospective buyers are almost certainly going to make
you an offer and it's nice to be able to accept this with
only a small cut in your profit margin!
Never part with your car against a cheque or a bank draft
that hasn't been cleared first. The only acceptable
payment for a client to take a car immediately is cash in
hand.
One snag is that traders usually offer finance facilities and
perhaps a warranty. It's possible to arrange both of these
in conjunction with finance companies and specialist car
warranty companies. In both cases, these companies will
provide you with finance for your customer (and pay you
a commission), or a warranty. Make enquiries. You might
have to be established for a while before they'll take you
on. If you can't offer a warranty facility make it clear that
your vehicles are sold 'as seen'. This will mean that your
prices are a little lower than garage type traders.
However, you still have a legal responsibility to the
customer that the car is roadworthy and as you described
it in any advertisement.
Because so many cars are on the market, selling is not
always easy. But the low prices you can buy cars for at
auctions, or for cash, mean that a profit, even if only
modest, is virtually assured in most cases, and that's
enough for a home business.
FINAL SUMMARY
Probably, most prospective car dealers and car
millionaires never get their ideas off the ground, because
they think too big. For example, they expect a posh
showroom and to be involved in mechanical repairs,
resprays, etc, is always necessary. The fact is, however,
you needn't be concerned with all this. It's much better to
start in a small way with just one car, and steer clear of
mechanical work and all the usual trappings of the car
trade. Obviously the rewards are less for a smaller
business, but they are still quite attractive for the effort.
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