About The Used Car Business
1990 Mercedes Benz 300SL Paid
$4,750 At The Dealer Auction
Start up cost
can be as low as $500 or as high as $30,000+, this is
determined by the kind of cars you will be dealing in. My
first car was a $1200 Ford Escort, I sold in a few days for
$2200.
Anyone with a drivers
license is a potential customer.
The average new car costs
$24,231.
The average new car
depreciates 42% by the second year.
The average used car costs
$10,000 - $15,000 less than a new car.
An average person spends
$200,000 - $600,000 on cars over their life time.
The car business is the
worlds largest industry next to real estate.
The average dealer profit on
a used car in 2008 was over $2875 determined by the National
Automobile Dealers Association (N.A.D.A.).
The average dealer profit on
a new car is only $600 - $800 determined by the National
Automobile Dealers Association (N.A.D.A.).
The average Dealer Auction
has 2000+ cars a week.
Dealerships & new car
franchises purchase 80% of their used car inventory from the
dealer auctions, 20% comes from trade-ins.
Most all cars at the dealer
auctions have some kind of warranty or guarantee (factory
warranties are transferable).
Because of the cost of new
cars, many people are becoming more cost conscious and trying
to save money by purchasing used cars.
The demand for quality used
cars has risen sharply -- over 47 million used cars will be
sold this year.
"As I
bought and sold my first few cars without
any guidance or help, sometimes I made money,
other times I made mistakes. Whenever I made a
mistake, I learned from it. Now as I look back, I
can see that while I made a little money on those
first few good deals, the knowledge I gained from
the bad deals has made me far more! Know
I can pass
along what I have learned to you so
you can
eliminate the mistakes most
people make
in the beginning!"
