[onewhippedpuppy]

Originally Posted by McLovin

We've had this discussion here before.

The bottom line is the margins are much smaller than most people think. The cars get bid up surprisingly high at the major auctions (like Manheim).

Some people here have gotten dealers licenses and tried it out and found out how high the prices are.

I had a collection of cars and a warehouse at one point, so it was easy for me to get a dealers license (was also good for tax purposes). I bought 20 or so cars at Manheim over the years. I ended up selling them all, and made money on all of them, but I could see that as a full time business, it would be very tough. The reason being the auction prices are to high and the margins too low.

Yup. I'm letting my license lapse after two years. Many many cars sold at auction for more than I planned to sell them for. You make your money on the cars based off of volume, you make the real money off of things like financing and service. It's not an easy business to make decent margins.