Any used car dealers or wholesalers?

[topfuel]

Long story short, I'm an auto tech of 20 years looking to make a
career change. My goal is to be able to buy and sell used cars in the wholesale market. I feel I have a good eye for the quality cars and at the same time can spot a junk a mile away, I know this is a valuable asset when it comes to used cars.
If anyone can offer any advice in this industry, I'd like to ask some questions.
Thanks,
Mike

 

[DKREDT]

You will need to get a dealer's license or work for someone that has one.

If you go it alone you will need to have the financial resources or credit available to floor plan the vehicles.

Assuming you are in WI, check out the state DMV sites as they most likely have the dealer requirements/application listed there.

Here is Iowa they require an actual "bricks and mortar" operation for you to be considered for a dealer's license.

 

[topfuel]

Thanks DKREDT, I found the license requirements at the DOT.
I'd be looking at a buyers license right now which doesn't require "brick and mortar". I want to stay mobile for a while and don't want to be tied down to a "building with a sign" yet.
I'm going to start asking some of the local retailers if they would have me as a wholesale buyer. I would need to get a seperate license for each individual retailer and if I could get enough retailers behind me this just might work.

 

[87grandnat]

Go for it!!! I am in the process of trying to start my own buisness (something totally different though) and support people trying to be independent, just like you said.......it just might work

Joshua

 

[SGRIM]

Be Careful!!

I have been in this game MY WHOLE LIFE, all the way back to both grandfathers. It can be a great business but it can suck you up in a heartbeat if your not careful. I do not know about your state but NC has some of the best DMV laws in the country and people still get BURNT everyday. There will be vulchers at every corner sniffing you out as NEW blood.

Take it SLOW

Join the http://www.niada.com/
and your state independent automobile dealers association.

Do not let other wholesalers trap you into one of "their" floorplans. Either do it through a auction company such as manhiem or go to one of your local banks and propose your business.

If you truly want to just wholesale there is 2 great ways to do it.
1. Buy from new car stores, trades, be the first one there when they open, pay a little more at first, and KISS *SS. Make sure you have your money right, when they want payment they want it then not after you call and get approval. If you get in with a couple of big stores you could have it made. It takes alot of work to get your foot in the door, and remember there is always a new guy just like you trying to start too, so once in do not forget that. Your background may hurt you a little here. These guys do not care what it may cost to repair these car you either buy or not, do not pick every car to death or they will not deal with you.


2. Auctions; This is where your previous experience can be very valuable. GO EARLY have in your mind what you want to buy and stick to a game plan. You can not bid on every car there, do not go lane jumping it will BURN YOU.
Look at the cars decide which ones you may be interested in and check them out before they even hit the block. Only bid on cars you have already checked out. Just becuase car has a green light does not mean you are safe. Must dealers who sale at auctions are PRO'S at hiding things. Also most auctions have a set amount say $500 that you can arbitrate on. Meaning you won auction and test drive off of green light and you drive and find problem if it does not take more than $500 to fix SORRY! Some auctions are up to $1000.

I will stop now, these are just the BASICS. Really join the association and read. Try to deal with people active in your state association most that are active are straight becuase they are trying to help.
Good Luck on your new adventure it can be a GREAT ride. Let me know if you have any more ?'s.

 

[topfuel]

Thank you sgrim, your insight is very much appreciated.
I'll go to niada tonight and read up.
I spent 11 years working as a tech for a huge dealer chain,
Bob Rhorman, I know they respected me and I left on good terms so I may be able to pull some strings with them.
Thakns again and I'll let you know when I have questions.
I have to get back to work now...
Mike