[onewhippedpuppy]

30-40%!!!! Damn I wish, you guys must be able to get away with better margins up North. Many of the cars at Manheim are selling for maybe 10% under book retail. I've watched cars sell for more than book retail at wholesale auctions, and definitely more than what I could sell them for. I would, however, believe 30% markup on trade-ins. If I could consistently make 30%, I would probably be doing this full time.

I have a dealer's license and do it as a side gig. In KS it requires a correctly zoned location that is not your home address, signage, a telephone, bond, and insurance. Definitely not something you can do out of your garage. Some dealerships do have an "auction" of their back lot trade-ins where they will offer them locally as-is before taking them to a true wholesale auction. I suspect your friend is buying cars in a similar manner.