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In the first section of this mini series on how to make money buying and selling used cars, we looked at what personal skills someone wanting to be profitable in this business would have to have. In the second part we looked at the best sites to locate such a business and in this section, we will look into acquiring our stock – our cars or trucks.

So, where can you get second-hand cars or trucks from? You will almost certainly get people coming in off the street trying to sell you their cars or trucks. That is frequently a good source of supply, if you carry out the necessary checks to make sure that they are not stolen, but this source will dry up from time to time – particularly in the summer.

Other places to obtain stock are private auction houses, bankruptcies, bereavements and government auctions, where cars or trucks are often quite heavily discounted.

At private auctions, anyone can bid for the lots that go under the hammer. Sometimes there is a minimum selling price, sometimes there is not, but the seller must pay to put his car in the auction anyway, which means that he has a vested interest in selling it to recoup this cost. If a car does not reach the minimum bid, try talking to the seller privately, you could pick up a genuine bargain.

If you are oblivious of local car auctions where you live, try looking in the local paper under “Up And Coming Events” or in the Yellow Pages under “Actions” or “Car Auctions” or go on line and make the same query including your locality.

Government auctions are fantastic sources to buy stock of any kind, including vehicles and machinery. These goods are usually either government surplus (new and used) or assets seized from the public. In The USA, it is best to register your interest in the auction catalogues of the two main governments auctioneers: the Department of Defense and the General Services Administration (GSA). Other countries have similar departments, which your local authorities can help you to get in touch with.

These government agencies auction off tens of thousands of vehicles or every conceivable description every year in the USA. Cars and other vehicles form a large slice of these auctions in monetary value – you would honestly find it hard to comprehend how many cars or trucks the government owns in the name of the people, from limos to lawnmowers. They all have to be replaced on a regular basis according to a schedule and the old ones are sold off.

The incredible fact that works so well in the business person’s favour, is that the government is more interested in clearing out their sheds of all this stuff to make room for more than it is in spinning a profit on it. All you have to do is register with the Department of Defense and the GSA and they will send you their auction catalogues automatically. This way you will have time to examine the goods before you bid.

The next part in this mini series will discuss how you can work out the value of the items that are being auctioned off.

Owen Jones, the author of this piece writes on a range of subjects, but is now involved with remote car alarms. If you would like to know more, please go to our website at Laser Temperature Gun.

In the first section of this mini-series on how to make money buying and selling used cars in the current financial conditions, we looked at what kind of individual is suitable to set up a used car business. In this section, we will look at where to actually establish your used car business.

So, how do you go about setting up your own used car business? The first thing to comprehend is that no matter whether you are establishing a part-time or full-time business, your customers and the government will expect you to conduct yourself and conduct your business in a professional manner and they have every right to do so.

If you do not conduct yourself appropriately, you will present a bad impression to your customers and get a bad name with them and you will get a bad standing with the taxation authorities and maybe the health and safety people too and be beleaguered by them with more that the average number of check-ups.

Decide what your most important market is. Do you want to specialize in used luxurious cars, middle-market or cheap vehicles? Or do you want to sell trucks, vans, buses or motorbikes? It is helpful to specialize, if your catchment area is big enough. For instance, if you live in a village miles from anywhere, it might not be worth specializing in second-hand buses, but second-hand farm gear could be a hit.

Pay a lot of attention to the site of your business. If you propose to sell one or two cars from adverts, this is not quite so important, but if you have thoughts for the future, you might want to get a small lot that you can expand on later.

This plot should be in a highly noticeable location, say alongside the highway that runs into town. If your site is less than ideal, you will have to spend a great deal more on advertising, which is something to keep in mind, when trying to work out what you can afford to pay for the plot.

Another important issue to keep in mind before agreeing to any contracts, leases or mortgages, is to find out whether you are permitted to open a used car business in that location. Some countries have a highly complex set of rules and regulations governing which kinds of business can be situated where. This is often called ‘zoning’. Sometimes you can get a ‘zoning variance’, but not every time.

Once you have your site and have chosen what type of used vehicles you want to specialize in, you should concentrate on establishing a unique corporate image – one that is instantly recognizable to local people as denoting your business. Use a motto, an emblem or a motif or a permutation of these, put up a sign and sign-write your van or tow-truck with them as well.

In the following part of this mini series, we will be examining how to locate your stock in trade – your vehicles.

Owen Jones, the writer of this article writes on a range of topics, but is now involved with remote car alarms. If you would like to know more, please visit our website at Laser Temperature Gun.