Storefront and part-time doesn't sound like peas and carrots. I'd love a couple grand a month, and I don't mind doing it legitimately, but it sounds like a huge time and money commitment. How would you set up a part-time business flipping cars if you want to be legitimate? It sounds very interesting.

Going legitimate just means you jumped through the hoops that others weren't willing or able to do.

I know guys that have their dealer's license and it costs them under $1000 a month, including rent and business/car insurance (so they don't carry private car insurance). The car they drive is inventory, so they didn't pay sales tax or registration or plates.

The benefit of being a legal, licensed auto dealer can outweighs the cost. Just having access to dealer-only auctions can be worth that.

If you can sell 3 cars a month for $1000 gross profit each, then pay your $1000 dealer's expense, you will net $2000. You can buy, clean, and resell three cars each month by spending a couple hours a day of actual work.... most of it from home. Maybe some months you do five, and others two.

You must also have the liquid capital to buy inventory. Easy when you're going to do a few, harder when you're going to do dozens.

Thanks a ton, Eric!

I've always been a car-bike-general motorhead-guy but my wife actually started the wheels turning here--she actually suggested that I buy a car, fix it up and resell it because she sees how much enjoyment I get out of toying with my P-car.

I have a couple friends here who are brokers and they echoed your sentiments.

Well worth it if you jump through the hoops.

The thought process continues.........

If you set up a storefront and get a legit license in GA let me know. I could be an employee of your used car lot and get mine too!

Yes, with one license it is possible to have a few trusted partners each doing their own thing. They can either split the expenses, or pay a set rate per car ($150-200 is the norm). Usually there is one license-holder, and the others are independent contractors.

Just remember that the legal liabilities are for the license holder, unless the licensed company is a legal partnership, LLC, corporation, etc.

It probably varies from state to state, but even in a heavily regulated state, it isn't terribly hard. The barriers to entry are pretty low. (Which you'll see if you ever go to a Manheim, etc. auction).

Like said above, really the biggest expense is the requirement for a "storefront." Most (many?) states won't allow a retail used car biz to be run out of a house, PO Box, etc. You need a brick and mortar location where the public (and the regulating agency, etc.) can find you.

But the minimum storefront requirements are usually pretty modest (a couple of parking spots, a small office, some kind of sign, etc.), and depending on where you live, you could find a spot that you could rent, and pass the requirements, for $500-$1500 month (again, highly location dependent - you won't get that in Manhattan, NY for that price. Manhattan, KS, maybe).

Bond premiums are generally very inexpensive,

Rent would be the biggest factor, but you could probably get away with all in expenses in the $1500/month range for a legitimate used car dealership.

Can you make a go of it as a full time job? Sure! People do it all the time, esp. if you don't have any labor costs (i.e., you do all the work yourself, you don't have any paid employees). But, many, many people try it and give it up, though. Many find the margins are too small, the headaches are too large, the work is too much, etc. for the amount that you make.

One thing you'll find is that the used car auctions in most major areas (like Manheim, etc.) are fairly effective at maximizing the value of the cars, particularly late model cars such as lease returns. IMO, I'd characterize the cars at those auctions as being "low retail" at best. You are not going to be able to buy cars for $20K and flip them for $30K.

some here have tried it, Lee, also Terry in Florida, etc. I don't think the long term success rate has been good, for the reasons mentioned above.

Focus on perfect college cars for kids. e.g., Corolla.

I've got two cars in mind: Camry and Miata. Camrys are a staple, like bread. I think it's a requirement to have a Camry in the stable if you've got a family. Pretty sure it is.

Miatas are cheap fun with a diehard fan base.

I would keep the two businesses separate. They don't mix well.

The advantage I see to limiting the selection is that all the repairs should be mostly similar. You'd know pretty quick what the common problems are and how to fix them.