Quote:
Originally Posted by onewhippedpuppy
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.
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Ditto. I'd go to the auction hoping to pay $10K for a car I thought I could sell for $12K. Less auction fees and a cut to the retail dealer, I figured I'd make $1000 net. Time and time again that car would sell for $12.5K-$14K at the auction.
I made more money buying off Craigslist and selling at the auction, but there are hundreds of guys doing the same thing. If you're not sitting on Craigslist hitting "refresh" over and over, ready to run out the door with $10K cash in your pocket, you're not going to have a chance. Even then, as you're running out the door to go buy the $10K car you hope to sell at the auction for $12K, some guy will call up and offer $10,500 or $11K.