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Author
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Topic: Selling cars the right way....QUESTIONS!
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N8
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Member # 6048
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So I am thinking on going into business with a friend and relative, buying and selling cars, with a shop attached. From what I understand there is a test involved and someone/everyone has to be bondable. Is this true? I want to hear from any of you guys that are currently doing this or went through the whole process to get a dealer license and all that jazz. From the little research I have done it seems like a lot of hoops to jump through. I am just thinking is it worth it. I already run my own company so this would be a side venture with me being more of a investor than a principal player. But I may want to get my hands a little dirty. Any advice, links, experience anything is greatly appreciated. PM if any info is sensitive.
Posts: 11638 | Registered: Sep 2005
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SheerSliver03
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Member # 6589
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"So I am thinking on going into business with a friend and relative,"
already broke the first rule of business
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2003 Altima SE
1970 Mustang Coupe *Sold
Posts: 641 | From: elk grove | Registered: Mar 2006
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essasin
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Member # 4741
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quote:
Originally posted by mustanghp950:
"So I am thinking on going into business with a friend and relative,"
already broke the first rule of business
It's not recommended but it could work as long as the three sit down and write out a contract that covers all ends and situations and designates each person role.
Posts: 2402 | Registered: Jul 2004
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N8
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Member # 6048
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quote:
Originally posted by essasin:
quote:
Originally posted by mustanghp950:
"So I am thinking on going into business with a friend and relative,"
already broke the first rule of business
It's not recommended but it could work as long as the three sit down and write out a contract that covers all ends and situations and designates each person role.
Yea, we are already have/had a couple of ventures together so we are all good. But yes you are correct in normal circles this makes all bad business.
Posts: 11638 | Registered: Sep 2005
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Insurance Guy
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Member # 8241
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i belive going into business buying and selling cars right now is a high risk business. The reason i say this is becuase the company i work for does all types of insurance and becuase of that we have all types of clients whcih includes car dealerships. we insurance some very large clients 2,000 cars on thier lot and some other very small clients 20 cars on thier lot. however all of them are hurting right now. what i have noticed is the ones who are very salidified in what they do wether they are big or small are surving but the part time or people who are doing it on the side have fallen to the way side. the ones who have survived have bumbed up thier marketing and advertising. so i am not saying do not do it i am just saying that if you do. be sure and market, advertise and network or make sure someone is doing that for the business becuase there are much less poeple looking for cars then previously in the indursty.
idea's for advertising ill send you via pm...
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01 GT Drop Top (R.I.P.)
02 GT Drop Top (Sold)
17 5.0 GT Coupe
Posts: 597 | From: San Leandro | Registered: Feb 2008
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N8
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Member # 6048
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posted
thx, I am also looking at the marketability of this venture as well. But we would targeting a specific market (without going into too much detail).
I know we have a few people here who are actually doing this stuff. I hope they chime in. But anyone's input is welcome.
Posts: 11638 | Registered: Sep 2005
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East Bay 50
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Member # 8081
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posted
quote:
Originally posted by N8:
thx, I am also looking at the marketability of this venture as well. But we would targeting a specific market (without going into too much detail).
I know we have a few people here who are actually doing this stuff. I hope they chime in. But anyone's input is welcome.
Good luck! I know you have to have some sort of commercial lot to store the vehicles before you get your licence meaning you can't use your home address
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Kurgan tuned stroked and blown 347 foxbody. boost nukka!
Posts: 2699 | Registered: Dec 2007
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N8
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Member # 6048
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posted
quote:
Originally posted by East Bay 50:
quote:
Originally posted by N8:
thx, I am also looking at the marketability of this venture as well. But we would targeting a specific market (without going into too much detail).
I know we have a few people here who are actually doing this stuff. I hope they chime in. But anyone's input is welcome.
Good luck! I know you have to have some sort of commercial lot to store the vehicles before you get your licence meaning you can't use your home address
Yes and no. Seems you can do it from home, but no more than 5 cars a month or something along those lines. I am always looking for a way to cut a corner. There are some pretty weird pre-requisites too for this.
Posts: 11638 | Registered: Sep 2005
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East Bay 50
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Member # 8081
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posted
quote:
Originally posted by N8:
quote:
Originally posted by East Bay 50:
quote:
Originally posted by N8:
thx, I am also looking at the marketability of this venture as well. But we would targeting a specific market (without going into too much detail).
I know we have a few people here who are actually doing this stuff. I hope they chime in. But anyone's input is welcome.
Good luck! I know you have to have some sort of commercial lot to store the vehicles before you get your licence meaning you can't use your home address
Yes and no. Seems you can do it from home, but no more than 5 cars a month or something along those lines. I am always looking for a way to cut a corner. There are some pretty weird pre-requisites too for this.
really? I thought to get a dealers license you had to have a car lot. I also thought the most cars you could sell was 1 or two a month if you don"t have a license.
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Kurgan tuned stroked and blown 347 foxbody. boost nukka!
Posts: 2699 | Registered: Dec 2007
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East Bay 50
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Member # 8081
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posted
quote:
Originally posted by East Bay 50:
quote:
Originally posted by N8:
quote:
Originally posted by East Bay 50:
quote:
Originally posted by N8:
thx, I am also looking at the marketability of this venture as well. But we would targeting a specific market (without going into too much detail).
I know we have a few people here who are actually doing this stuff. I hope they chime in. But anyone's input is welcome.
Good luck! I know you have to have some sort of commercial lot to store the vehicles before you get your licence meaning you can't use your home address
Yes and no. Seems you can do it from home, but no more than 5 cars a month or something along those lines. I am always looking for a way to cut a corner. There are some pretty weird pre-requisites too for this.
really? I thought to get a dealers license you had to have a car lot. I also thought the most cars you could sell was 1 or two a month if you don"t have a license. either way, a dealers license gives you access to dealer auctions and wholesale costnot to mention a wide assortment of vehicles vs craigslist or autotrader.
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Kurgan tuned stroked and blown 347 foxbody. boost nukka!
Posts: 2699 | Registered: Dec 2007
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03gtPONY
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Member # 5337
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Yes everyone who is going to be a part of your business venture, or who's names show up as owners will be liable. Also, look at what your budget entails. If a loan will not suffice what you are getting yourself into, stay away. Right now the economy is hurting and does not seem like a good thing to do. There are several used car dealerships that have made a name for themselves and seem to be hanging on. But remember if you are going to be a new car dealership, ie. selling new cars, its a much bigger risk. You can try to work at a used car dealership to see if they can teach for a little bit. sorry for rambling
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*Sleeper GT* nuff said
Posts: 108 | From: bay area | Registered: Feb 2005
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96mysticman
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Member # 8327
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wouldnt fuck with it ![[patriot]](graemlins/patriot.gif)
Posts: 580 | From: stockton | Registered: Apr 2008
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FoX GT
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Member # 4587
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posted
quote:
Originally posted by N8:
quote:
Originally posted by East Bay 50:
quote:
Originally posted by N8:
thx, I am also looking at the marketability of this venture as well. But we would targeting a specific market (without going into too much detail).
I know we have a few people here who are actually doing this stuff. I hope they chime in. But anyone's input is welcome.
Good luck! I know you have to have some sort of commercial lot to store the vehicles before you get your licence meaning you can't use your home address
Yes and no. Seems you can do it from home, but no more than 5 cars a month or something along those lines. I am always looking for a way to cut a corner. There are some pretty weird pre-requisites too for this.
I'm sorry but that's not correct. Here is the ACTUAL link on the DMV website for the requirements for a dealer. There is nothing that says, "5 cars a month, etc".
http://www.dmv.ca.gov/vehindustry/ol/dealer.htm
Do I have to be the asshole that says the way you dealt with Casey90GT you might want look at another business than selling cars?
http://www.californiafords.com/ubb/ultimatebb.php?ubb=get_topic;f=5;t=057725;p=1
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- AED -
03 Cobra 10th anni 3.4 Whipple 9.47@141
2012 Mustang GT 10.98@125
2015 Mustang GT
Bring what you got and hope its enough!
Posts: 1955 | From: East bay | Registered: Jun 2004
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N8
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Member # 6048
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No asshole-ism taken. And unless you judge a person by a mild transgression that even both parties have agreed got blown out of proportion by 2 hot heads and have since let it go and mind you had nothing to do with you. Then yes you are a asshole. But you wouldn't be that way now would you ![[Wink]](wink.gif)
Thanks for the advice folks and I guess I didn't give much info but the site is not going to be in California. So some of the things pointed out in the above links are not valid. But...it did yield some info that I need to be sure about. So thanks for the links.
Well change that, initially it would be out of state. So you links are valid. Like I said I am still in the discovery stage. So any input would be cool.
[ September 10, 2008, 08:56 PM: Message edited by: N8 ]
Posts: 11638 | Registered: Sep 2005
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*BlownMach1*- TRMYN8R
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Member # 5400
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wow i had a guy not sell me a car for full asking price once when i drove all the way to santa rosa from sac from this board...it cost me like 60 bucks and a whole day wasted just cause his mom told him that he needed to keep it and she would pay for storage..he then sold it 2 days later anyway..i was heated!!! I completly understand how casey feels and Nate i hope u just take it as a lesson learned and if u say u will take a offer..stick to it and for now call it water under the bridge!!!
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88 notch- MM&FF June 2014 feature car
93 cobra #1879
90 hatch "Wifey's"
14 F150
89 mastercraft- wake tower with some sound
Team True Forged!!!
Posts: 3535 | From: sac town | Registered: Feb 2005
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N8
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Member # 6048
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True cafords fashion. Well here we go.
No lesson to be learned except for you guys that have issues and think the board is going to help you out. We had a issue, that I felt was in my right to do something ya'll would or wouldn't have done. We hashed it like men away from the public eye. And let it go. If he can why cant ya'll. Fox I sent you a PM. I feel you have something to get off your chest so I'll address that there. Blown, I am going to assume you are the dude I bought the 5 lug and paid to have it installed (named Casey as well). I went with you despite public outcry that you were a crook and not to be trusted. That's is the difference between me and most. I let my experience with you be the deciding factor. And it worked out you were alright with me. If you are not the same guy I apologize.
Posts: 11638 | Registered: Sep 2005
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slidewayz94
CAFords OG
Member # 3101
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posted
From what I remember of my buddies dealership, he was licensed and bonded. Had his sales license with DMV. He rented a warehouse to store his vehicles.
He only bought used Lexus' no more than 3 years old from auctions. Only advertised in the paper/word of mouth and kept cost way down. Him and his dad just invested money from that into other businesses.
Posts: 4251 | From: Sac | Registered: Jul 2003
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*BlownMach1*- TRMYN8R
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Member # 5400
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yeah we did the 5 lug..U are cool with me, and if i remember right that deal went smooth..i also know casey as we have done some deals too,,thats why i am not taking sides..i have done pefect deals with both of u guys..i was just saying i had a simular situation and it sucked..I dont see how anything i said was offensive to u..sorry if it seemed that way..
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88 notch- MM&FF June 2014 feature car
93 cobra #1879
90 hatch "Wifey's"
14 F150
89 mastercraft- wake tower with some sound
Team True Forged!!!
Posts: 3535 | From: sac town | Registered: Feb 2005
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N8
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Member # 6048
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Your comment wasn't offensive but if you mix it with what homeboy said, it just comes across bad. But that should be the lesson learned that you spoke of. Handle your shit like a man between the person you have the issue with. No one on this board has the ability to make me do something I do not want to do. Period.
I have given away more parts and playa priced things for people than I have sold or tried to profit from. And for someone to come on here and hi-jack my topic then try to make me look like some crook/clown. That just got under my skin. I really hate when simple things become a drama session. Anyway, Casey no offense taken and you are alright in my book. FoxGT and I have a understanding. And thanks to all the people who have commented and PM'd advice.
Slidewayz....thanks man, that is almost what we would be doing. I am going to test the water a bit as I said for now I am just a investor and willing to take the inventory as payment if it looks like my money wont be re-couped. If things look good I will be getting a little more involved and maybe try things in Cali. I figure I would try another way to make my money work for me. It was either this or buy a condo.
[ September 11, 2008, 09:36 AM: Message edited by: N8 ]
Posts: 11638 | Registered: Sep 2005
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cummins
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Member # 5931
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N8 since you always do the opposite of what I suggest, then I say go for it and put 100 percent into it! You and your biz partners should quit your jobs and do this full time. Start now! Its a great way to make money especially in today's economy where people are spending money like crazy and have lots of it to waste.
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Your definitely jealous of my strength and brains. - 68_427_Fastback
Cummins looks like the Wendy's girl......without the pig tails. - JT
Posts: 3441 | From: The Rice Fields | Registered: Aug 2005
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N8
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Member # 6048
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posted
quote:
Originally posted by cummins:
N8 since you always do the opposite of what I suggest, then I say go for it and put 100 percent into it! You and your biz partners should quit your jobs and do this full time. Start now! Its a great way to make money especially in today's economy where people are spending money like crazy and have lots of it to waste.
lol...smart-ass, at least you didnt call me "L8"
[ September 11, 2008, 10:21 AM: Message edited by: N8 ]
Posts: 11638 | Registered: Sep 2005
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adower
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Member # 5955
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If your serious about this then you probably shouldnt be asking here. You should be consulting with a lawyer of some sort in the actual state your going to be doing business. If I were you I wouldnt be asking run of the mill people how to invest a large sum of money.
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98 Cobra
Griggs
S Trim
HRE
Posts: 3327 | Registered: Aug 2005
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N8
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Member # 6048
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Well I did already do all my consulting, but nothing like getting a cafords perspective
Nah, but I know a few people here are doing it already so that is my main reason for asking here. Dont think it was too "run of the mill" to ask about the ins and outs of the biz. Wasn't really asking for a financial forecast, but I appreciate any opinions. Oh and best believe I wouldn't let the advice here be my last stop. Hell people on here have trouble buying upper intakes from folks. But point well taken, I was just seeking more insight from a truly neutral source.
Posts: 11638 | Registered: Sep 2005
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FoX GT
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Member # 4587
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I can give information for setting up a car dealership in California, but in another state, especially when you haven't said what state it is makes it nearly impossible. ![[burnout]](graemlins/burnout.gif)
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- AED -
03 Cobra 10th anni 3.4 Whipple 9.47@141
2012 Mustang GT 10.98@125
2015 Mustang GT
Bring what you got and hope its enough!
Posts: 1955 | From: East bay | Registered: Jun 2004
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N8
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Member # 6048
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posted
quote:
Originally posted by FoX GT:
I can give information for setting up a car dealership in California, but in another state, especially when you haven't said what state it is makes it nearly impossible.
Well if things go well I may try to bring the setup to Cali. That is the plan. So any info on any gotchas or pitfalls to the process would appreciated. I do not want to go into too much detail due to the uniqueness of the idea. But the basics revolve around the business model of a person with a dealers license.
Things I am looking into now, is it seems there are 2 levels to the licensing basically. One that lets you sell to other dealers only and one where you can do whatever. Also it seems there is a test involved. Like I said for now I am a investor but approaching it for now like I am a sole proprietor just for my edification.
Any info is appreciated. Oh and Cali info is ok. There may be some crossover.
[ September 11, 2008, 12:49 PM: Message edited by: N8 ]
Posts: 11638 | Registered: Sep 2005
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