Jcwholesale

doomy999, May 14, 9:51am
I'm assuming since this is in your profile you wont mind me asking. Its some thing I have wwondered about for quite some time. Obviously if Im out of order asking you can just say so.
What does mean.
"My core business is to buy a car off a dealer, then resell it to another dealer."
The reason I ask is I have always lost money on cars and would make a terrible car sales man. I cant even make a proffit after buying privately so Im curious as to how some one can make a profit buying a car from a caryard, when they already have a big mark up in place, then on selling to another car yard that is going to want it for a bargain price so that they can put there own mark up on it.

I hope you dont mind me asking but Im really curious as to how this can be done.
phillip.weston, May 14, 10:05am
car dealers generally will sell to other dealers or wholesalers for a wholesale value. A dealer trades car X and pays Y amount for it because they generally don't want that particular model on their yard (be it that it's a Ford at a Holden dealer, a Japanese car at a prestige European dealer, or something that is just too old or higher milage etc). JC or any other wholesaler comes along and takes it off their hands for cost value or close to it, tidies it up and does any required repairs/maintenance and then sells on to either the general public for a retail value or to another dealer who is after that vehicle particularly and is willing to pay amount Z.
kazbanz, May 14, 10:07am
Doomy-I can answer that one. Those guys buy cars from the big franchise dealerships etc. The cars they buy are trade ins. They will have a group ofsecond hand dealers who need stock that buy off them.
They pay the real trade in price often or sometimes if the franchise guy has made a mistake even less.
That sort of wholesaler works on a couple of hundred dollars profit because theres no risk to them. Ie selling to dealers means no CGA etc.
phillip.weston, May 14, 10:08am
I bought a car off a dealer as it was a trade in which in that dealers eyes was literally 'dead' with a leaking water pump with horrible bearing noise and faded paint all over. I replaced the water pump and cam-belt and spent a weekend with the buffer on the paint and $1res'd it on trademe and it ended up going to a dealer in Auckland. I made quite a good profit on that car! I knew that other than the water pump and paint it was still a good car with a really tidy interior, NZ-new with service history and reasonable kms travelled.
jcwholesale, May 14, 10:11am
Pretty much right Philip. The other part is I have a number of dealers ring me before they trade them for a price. So I price many cars a day without viewing. If or when the car is traded, which can be up to 2 or 3 weeks later I get the car. I have dealers that need cars so on sell them to them for yard stock, the higher km stuff I sell on TM as prices normally cheaper than the public sells them for. so everyone wins. :-)
kdcentralni, May 14, 1:04pm
See a few dealerships setting up their own TM accounts or a little yard in their home town to take advantage of this downstream business now. Often franchises only make money out of used and servicing. Off coarse there are units that don't fit the criteria none the less.
eagles9999, May 14, 1:55pm
Yes that happened to me a couple of weeks ago. The dealer I was buying off rang a couple of guys to get a price on my car. ActuallyI was quite impressed by the no-nonsense way it was all handled
tgray, May 14, 2:45pm
It's a very satisfying experience to buy off a dealer, and then sell for a profit to another dealer the next day, without having to do anything else in between.
It's like a 'what the heck just happened' experience. Very nice indeed.
doomy999, May 14, 3:01pm
Im a little amazed. one would think if there was a profit to be made, the dealer who owns the car would see this and make it themselves.
Unless of course they deal in high end cars and cant be bothered messing with junkers.
I must admit to this thread being an eye opener.

cheers everyone.
kazbanz, May 14, 3:25pm
Doomy sometimes theres the matter of public perception to worry about. A company selling 100k cars really don't want to be seen selling 4k cars.
There can be a bit of snob factor
But of course theres always the guys who have their own"disposal" yard for the cheap trade ins. Just quietlytheres a "couple" of bits of interesting reading when it comes to ownership of one or two of the cheapie yards.
doomy999, May 14, 3:41pm
Hi Kaz, yes, as in post 9
"Unless of course they deal in high end cars and cant be bothered messing with junkers."