Went to the Auction in Nashville yesterday and stayed with my plan on investing. I look for cars that may need a few minor repairs for those on Craigslist looking for a project car. One I bought was a 1998 Lincoln Navigator.
I paid $650 after fees $765. I drove it back from Nashville. Some people are in this business to satisfy their ego. Others are in it for the money. Neither one is wrong. It's just what you feel your calling is.
Wednesday, December 30, 2015
Thursday, December 17, 2015
Getting the Treatment you derserve!
This morning I am reflecting on all the years I have been going to Auto Auctions I know how to get the treatment I deserve. We often walk up to the ladies at the counter and expecting to get our titles and be treated with respect. What do we give over all the others who walk up and expect the same. Day in and Day out these ladies often get no more than a kind word if anything. If you want respect give it. Show them you empathize and appreciate their attention. Send a cake or maybe lunch every now and then. This may cost you $50 or so. It is well worth the investment. When you are looking for a Title or needing some special attention, be special to them and deserve the attention. One day if you are a car dealer you are going to need a favor so pay it forward!
Wednesday, December 16, 2015
Tom Success Story
Tom called me about becoming a wholesaler in October of 2015. We discussed the opportunities and he jumped in our network mainly because he wanted the experience I had built. Tom Last week earned $6800 as a wholesaler. I am going to call Tom today and go over some of his success stories that have led up to his feat. I recorded a 22 minute phone call with Tom and fished for some his secrets. This guy is on the ball.
Click here to listen to His Call
Click here to listen to His Call
Phylosophy
When starting any business it’s very important that you have
a philosophy in mind. Younger people
tend to have a different philosophy between life and business. As we get older we realize that life is simply
a business. The car business is no different from any other life business.
The car business is
strictly a lifestyle. Most of us entered
this business because we have a passion for automobiles. As a matter of fact a passion for automobiles
is what partly built America.
There are many reasons that I’m in this business however the
main one is my passion for automobiles. As a young man growing up in a salvage
yard I learned to diagnose and work on vehicles at a very early age. The type
of vehicle I drove and the compliments that I got depended on my ability to
whip the car into shape. I started driving some very ugly cars. First I would
get them running good and then I would start doing bodywork. I was known in school as the kid who all the
time spend his money on his car. I wasn’t very popular with anyone except those
that treasured their rides.
Once I got a car that looked sharp and traditionally was
very fast other kids wanted to buy the cars from me. So I would sell it, go to
the backfield and grab me another piece of junk and begin the process all over
again of transforming that junk into a cool ride.
I had a reputation for knowing how to work on cars and
transforming them.
As I think back now some of the classics that I had would be
worth a fortune today.
What I loved more than anything was the desire
that I created in people to own my masterpieces. Of course as a kid I never
started working on a car with the intentions of selling it. So I put my efforts
into making sure it was very good transportation for me to get to and from
school as well as other places that I wanted to travel. The more I hesitated
at selling a car the more prospective buyers were determined to own that car.
I learned at very early age the take away close. The take away close is simply showing no interest of selling the vehicle. I often used the comment that it would take a lot of money to get this vehicle away from me.
Tuesday, December 15, 2015
Trading make the Deal Sweeter!
I love to take trades in for cars I have for sale but let me explain how the big Dealers do this process.
First you have the salesman that is pricing the car for a Retail price. You have the sales manager and you have the wholesaler who appraises ACV (actual cash value) of the car. A wholesalers never gives the amount he speculates he can retail the car for. He is only concerned with what the car would bring cash at the very next auction. As a matter of fact he is often compensated on his knowledge of the wholesale value of the car. It is the used car manager who will decide if the car is kept for retail or sent to the auction for cash liquidation.
What the wholesaler will appraise the car will consist of all the repairs needed to make the car retail able. He will take into consideration first tires, detailing, oil changes, mechanical issues. He will deduct all these charges for the actual cash value of the car.
We often call this in the business "steal the trade". This is a huge way to make big money on a single purchase. One car can make you thousands on the trades. I often give $500 or $600 for a trade and sell them for $2,000. The car buyer wants what you have and is very willing to give what he has away to get it.
I recently had a 2000 Crysler Van on Craigslist for $2000. I paid at the Auction with auction fees $565. A man called me up and told me he had $1500 cash. I asked him if he had a trade? He said yes but it wasn't much. He said he did not like it, but it ran. I said I would take his $1500 and his van. He jumped at the chance to get my van. He brought his van and $1500. I sold his van the next day for $1000. So instead of getting my asking price of $2,000 I ended up getting $2500 through my trading.
First you have the salesman that is pricing the car for a Retail price. You have the sales manager and you have the wholesaler who appraises ACV (actual cash value) of the car. A wholesalers never gives the amount he speculates he can retail the car for. He is only concerned with what the car would bring cash at the very next auction. As a matter of fact he is often compensated on his knowledge of the wholesale value of the car. It is the used car manager who will decide if the car is kept for retail or sent to the auction for cash liquidation.
What the wholesaler will appraise the car will consist of all the repairs needed to make the car retail able. He will take into consideration first tires, detailing, oil changes, mechanical issues. He will deduct all these charges for the actual cash value of the car.
We often call this in the business "steal the trade". This is a huge way to make big money on a single purchase. One car can make you thousands on the trades. I often give $500 or $600 for a trade and sell them for $2,000. The car buyer wants what you have and is very willing to give what he has away to get it.
I recently had a 2000 Crysler Van on Craigslist for $2000. I paid at the Auction with auction fees $565. A man called me up and told me he had $1500 cash. I asked him if he had a trade? He said yes but it wasn't much. He said he did not like it, but it ran. I said I would take his $1500 and his van. He jumped at the chance to get my van. He brought his van and $1500. I sold his van the next day for $1000. So instead of getting my asking price of $2,000 I ended up getting $2500 through my trading.
What type of Cars to buy to make money!
This is a question I get asked all the time. The answer is the ones you like. Each and every car has a unique selling point. My old mentors always said "there is an ass for every seat". Even the most undesirable cars appeal to someone somewhere but as a rule. Do your homework!
I have had very good luck with Minivans in a price range of under $1,000. One of my mentors said to me years ago that give me 10 1,000 cars over 1 10,000 car any day and that is a philosophy I use. The more expensive cars do not necessarily mean more profit. Craigslist has been a major player in the market for reselling. Most people go there to find great deals. I also use ebay when I am offering a little nicer car. One of the first things I consider even when I am buying a car is how I am going to liquidate it.
I currently own a 2001 Toyota Camry with 288,000 miles. I have it advertised on Craigslist for $3,000. I drive the car everyday and have put almost 10,000 miles on it. Lots of people call me up and try to negotiate with me due to the miles but this car is immaculate with a new timing belt,new tires,new rear gas struts and a fresh tune up. It is a one owner. It is unlike any 2001 Toyota anywhere so it will bring what I ask for it or I will get my return from driving it.
On the flip side of the Toyata is a 2005 Chevy Van I own. I am not a big fan of Chevy vans but we picked this van up from a private seller who thought it was junk and needed a motor. We bought it for $300. Turned out this Van had a bad instrument cluster. I can get it rebuilt for $50. We have it priced at $3500 and could easily take it through a dealer auction and get $2,000 for a quick profit!
I have had very good luck with Minivans in a price range of under $1,000. One of my mentors said to me years ago that give me 10 1,000 cars over 1 10,000 car any day and that is a philosophy I use. The more expensive cars do not necessarily mean more profit. Craigslist has been a major player in the market for reselling. Most people go there to find great deals. I also use ebay when I am offering a little nicer car. One of the first things I consider even when I am buying a car is how I am going to liquidate it.
I currently own a 2001 Toyota Camry with 288,000 miles. I have it advertised on Craigslist for $3,000. I drive the car everyday and have put almost 10,000 miles on it. Lots of people call me up and try to negotiate with me due to the miles but this car is immaculate with a new timing belt,new tires,new rear gas struts and a fresh tune up. It is a one owner. It is unlike any 2001 Toyota anywhere so it will bring what I ask for it or I will get my return from driving it.
My point is find the benefits of any car you buy such as miles, history or owners, kbb values,auto check and put all that knowledge into selling the car not the make,model or year.
On the flip side of the Toyata is a 2005 Chevy Van I own. I am not a big fan of Chevy vans but we picked this van up from a private seller who thought it was junk and needed a motor. We bought it for $300. Turned out this Van had a bad instrument cluster. I can get it rebuilt for $50. We have it priced at $3500 and could easily take it through a dealer auction and get $2,000 for a quick profit!
The car game is not a secret. It's all about doing minor things to the car to make it remarketable. Remember this, the only excuse and experienced a car man should every make is the price. A nice car is worth a reasonable price. Mechanical excuses are hard to overcome. Make sure your car is clean and presentable.
Check the cars
Don't invest in a car lot!
Most people do not understand that owning a car lot is a lot of hassle. It is more than buying and selling cars. It is a full time business to answer to the State DMV every detailed action you are involved in. An example would be trying to be a licensed electrical contractor and then trying to wire houses.
You can have the same privileges as a auto dealer by working through a licensed auto dealer. This dealer can authorize you to act upon their behalf to buy and sell cars. You negotiate your privlige fees with the dealer.
A very good friend of mine has lived a very good life. He often compares flying an airplane does not necessarily mean you must own it. This is so true.
I have been a car dealer for over 40 years and the best years in the car business were the years I spent not running a car business.
The absolute best way to be in the car business is as a rep for the dealer who owns the Dealership. Let him handle all the business aspect and let me buy and sell cars. I have my license through a dealer. He pays the bonds,insurance and all the overhead. I contribute to his overhead with a small monthly fee.
You can negotiate a deal with a small used car lot that is a win,win for both of you.
I currently pay only $300 per month for access to dealer only auctions and I am able to transfer my titles through that dealer and avoid registering or paying tax on my vehicles.
I currently manage many car dealers agents programs for them. Due to my experience I can help you negotiate a win win deal wherever you live.
The main thing to understand is interstate laws to not apply to car dealers. A license from any state will work in the state you reside.
This perfectly legal and simple.
Larger car dealers are very politically connected and will not entertain these types of relationships.
I actually started dealing this way in cars in 1980. I had more fun than as I do now just buying and remarketing cars and leaving the headaches to the principal dealer.
The principal is condersidered the dealer but anyone trading in cars is the a car dealer. The principal can appoint as many dealers as he likes. Just as a Real Estate broker can have many agents in their office.
You can have the same privileges as a auto dealer by working through a licensed auto dealer. This dealer can authorize you to act upon their behalf to buy and sell cars. You negotiate your privlige fees with the dealer.
A very good friend of mine has lived a very good life. He often compares flying an airplane does not necessarily mean you must own it. This is so true.
I have been a car dealer for over 40 years and the best years in the car business were the years I spent not running a car business.
The absolute best way to be in the car business is as a rep for the dealer who owns the Dealership. Let him handle all the business aspect and let me buy and sell cars. I have my license through a dealer. He pays the bonds,insurance and all the overhead. I contribute to his overhead with a small monthly fee.
You can negotiate a deal with a small used car lot that is a win,win for both of you.
I currently pay only $300 per month for access to dealer only auctions and I am able to transfer my titles through that dealer and avoid registering or paying tax on my vehicles.
I currently manage many car dealers agents programs for them. Due to my experience I can help you negotiate a win win deal wherever you live.
The main thing to understand is interstate laws to not apply to car dealers. A license from any state will work in the state you reside.
This perfectly legal and simple.
Larger car dealers are very politically connected and will not entertain these types of relationships.
I actually started dealing this way in cars in 1980. I had more fun than as I do now just buying and remarketing cars and leaving the headaches to the principal dealer.
The principal is condersidered the dealer but anyone trading in cars is the a car dealer. The principal can appoint as many dealers as he likes. Just as a Real Estate broker can have many agents in their office.
Monday, December 14, 2015
Cursbstoning
It was in the 1960s when I was first exposed to the state inspector for car dealerships.
My dad had a salvage yard and he would often repair automobiles
then place them outside in our front yard. One day a man stop by to look at a vehicle
my dad had placed in our front yard. Of course they struck up a conversation about the vehicle
and then my dad opened up like a book. The man said yes he had seen several vehicles
in our front yard and was curious if we had a dealer's license. Of course my dad responded no.
He then told my dad as he gave him his card he was the state inspector for Tennessee.
He then informed them he would be paying a fine. He also needed the records of the
previous vehicles he had seen in the front yard. The man had taken the vehicle identification numbers
from each car and knew my dad had sold the vehicles. This is what we call today
(curbstoning).
My dad came into the house furious as he had just been fined and now was under investigation
for back taxes due from the previous sales. Now in haste he began to search for a location
and the process of acquiring a used car dealer's license. Now keep in mind my dad
had no intention of leaving his very successful salvage yard business and working in a car dealership.
My dad had decided his son who had never sold a car in his life would be running
the day-to-day activities of this used-car lot. Thus began my sink or swim career
in this business. We opened up that little car lot and due to different Philosophies
and the fact I had no experience this venture was very short-lived.
Moving forward about two years and thanks to synchronicity came in contact with a fascinating
intelligent man. I had never met anybody like this man. Quiet and distinguished with a
unmatched pair of confidence. It was a sales manager at a local Volkswagen dealer.
Although he was new car manager his used car manager's fascination with used cars far exceeded
his love for the new car business. Bill took pride with every used car we place on our lot.
Our dealership was known for some of the nicest used cars anywhere in town. Our wholesalers
new never to bring us a car to buy unless it was front line ready. Bill always said
that a nice car could never be overpriced! Our sales often proved he was right.
My dad had a salvage yard and he would often repair automobiles
then place them outside in our front yard. One day a man stop by to look at a vehicle
my dad had placed in our front yard. Of course they struck up a conversation about the vehicle
and then my dad opened up like a book. The man said yes he had seen several vehicles
in our front yard and was curious if we had a dealer's license. Of course my dad responded no.
He then told my dad as he gave him his card he was the state inspector for Tennessee.
He then informed them he would be paying a fine. He also needed the records of the
previous vehicles he had seen in the front yard. The man had taken the vehicle identification numbers
from each car and knew my dad had sold the vehicles. This is what we call today
(curbstoning).
My dad came into the house furious as he had just been fined and now was under investigation
for back taxes due from the previous sales. Now in haste he began to search for a location
and the process of acquiring a used car dealer's license. Now keep in mind my dad
had no intention of leaving his very successful salvage yard business and working in a car dealership.
My dad had decided his son who had never sold a car in his life would be running
the day-to-day activities of this used-car lot. Thus began my sink or swim career
in this business. We opened up that little car lot and due to different Philosophies
and the fact I had no experience this venture was very short-lived.
Moving forward about two years and thanks to synchronicity came in contact with a fascinating
intelligent man. I had never met anybody like this man. Quiet and distinguished with a
unmatched pair of confidence. It was a sales manager at a local Volkswagen dealer.
Although he was new car manager his used car manager's fascination with used cars far exceeded
his love for the new car business. Bill took pride with every used car we place on our lot.
Our dealership was known for some of the nicest used cars anywhere in town. Our wholesalers
new never to bring us a car to buy unless it was front line ready. Bill always said
that a nice car could never be overpriced! Our sales often proved he was right.
Sunday, December 13, 2015
Preface
My journey in the car business began in the Mid 60's. I want to give special thanks to my father Benton Mac Barber, my mother Alice Christine Barber and my First mentor Bill Grizzard who I often see still today at Manheim Auto Auction in Nashville.
Dad I never wanted to be a grease monkey, but here I am today still telling of all the days you had me stripping parts off wrecked cars. I remember one in particular. It was snowing outside and you told me to go outside and take the steering column off a car. The windshield was out and the snow was blowing in on me and I was cussing every breath saying I never wanted to work on cars anyway! The experience was invaluable!
Mom, I am sorry for tracking grease in house and often taking a bath leaving an oil ring around the tub. You would enjoy life with me now as I rarely get dirty from anything! lol
Bill, I was scared to death to leave the security of a Job I had. I know it took you a long time to convince me to take the chance. Once I did I never looked back. I have no earthly idea what I would have done without your guidance in this business. I believe you are still the best car man I have ever known and my journey's have put me with some of the best!
Thank you all from the bottom of my heart!
Dad I never wanted to be a grease monkey, but here I am today still telling of all the days you had me stripping parts off wrecked cars. I remember one in particular. It was snowing outside and you told me to go outside and take the steering column off a car. The windshield was out and the snow was blowing in on me and I was cussing every breath saying I never wanted to work on cars anyway! The experience was invaluable!
Mom, I am sorry for tracking grease in house and often taking a bath leaving an oil ring around the tub. You would enjoy life with me now as I rarely get dirty from anything! lol
Bill, I was scared to death to leave the security of a Job I had. I know it took you a long time to convince me to take the chance. Once I did I never looked back. I have no earthly idea what I would have done without your guidance in this business. I believe you are still the best car man I have ever known and my journey's have put me with some of the best!
Thank you all from the bottom of my heart!
Forward
I started in the car business when I was only 20 years old. I am now 63. It was my first love! It was my first Fortune! It was first taste of true Independence. In the car business it's instinct, sink or swim, ego and confidence. My first day working for a Car Dealership I earned over $1200. This was in 1977. Before the month was over I earned over 10,000 in that one month! Never had I seen such financial success of my efforts. The beauty part was I was not guaranteed a paycheck from my employer. I will never forget he handed me a blank Check and said I would fill in the amount. That check stayed blank but daily I filled in the amount that would be mine on the coming 1st of the month.
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