Buying and selling cars

malazn mafia · 14-05-2009, 11:33 PM

Got a couple of grand of savings lying around doing nothing and debating whether to go with shares, fixed term deposit, or to invest in buying/selling cars. Anybody have experiences with buying/selling vehicles? How about damaged vehicles, or even stripping damaged vehicles for parts? Any pitfalls I should be looking out for?

Scott · 14-05-2009, 11:44 PM

I have quite a bit of experience with buying/selling low end cars and the best advice I can give you is don't get stuck with one. Stay true to the market you will be buying for and know your figures before you bring anything home. Low end cars are selling at a premium lately, good way to turn an extra buck if you can pick up the right cars.

Personally, I am having a good look at the Pound now, not advice to do anything but perhaps it'd be worth your while having a look.

malazn mafia · 15-05-2009, 12:04 AM

Quote:

Originally Posted by GTP006

I have quite a bit of experience with buying/selling low end cars and the best advice I can give you is don't get stuck with one. Stay true to the market you will be buying for and know your figures before you bring anything home. Low end cars are selling at a premium lately, good way to turn an extra buck if you can pick up the right cars.

Personally, I am having a good look at the Pound now, not advice to do anything but perhaps it'd be worth your while having a look.

Whats your definition of 'low end car'? You mean the E-series/A-series/B-series falcs you can scoop up for a dime a dozen and have massive price variations, or you mean an economy car like a toyota 4 banger, etc. Thanks for the reply btw.

Scott · 15-05-2009, 12:22 AM

Personally, at the moment I would be looking at economical cars with A/C and maybe elec windows. I'd be hunting these cars for sub $1500 with a plan to move them at minimum 30-40% after your costs. ie, pick up a cheap Camry for $1500, spend $300-$500, move it along for your first cash offer of atleast $2500. I wouldn't take the time to put them in my name, get them in and move them out in a fortnight.

malazn mafia · 15-05-2009, 01:08 AM

Quote:

Originally Posted by GTP006

Personally, at the moment I would be looking at economical cars with A/C and maybe elec windows. I'd be hunting these cars for sub $1500 with a plan to move them at minimum 30-40% after your costs. ie, pick up a cheap Camry for $1500, spend $300-$500, move it along for your first cash offer of atleast $2500. I wouldn't take the time to put them in my name, get them in and move them out in a fortnight.

Thanks for the info. So the idea is to take the cars in and get rid of em quick, without ever leaving a trace that it was in your hands (to circumvent the need for LMCT?).

Buzz Box · 15-05-2009, 10:05 AM

I believe from another thread if you don't sell them with rego its not recorded or you can sell 2/3 cars before a need for LMCT

ZA-289 · 15-05-2009, 05:36 PM

Buying and selling cars is fun but it can be hard to sell them sometimes, stripping cars is hard work, If you enjoy it go for it but if it's more about the money, i'd just go shares / term deposit.

It is getting harder to sell cars these days too. GFC and all.

Macca23 · 15-05-2009, 05:52 PM

If your handy with merchanic's. A mate buys a vehicle that has a "PROBLEM" usually the owner isnt 100% sure of exact problem. Hes a whizz and he usually can pin point the problem quickly. Offeres not much. Fix the problem and makes a few $$$$

Bought a 2003 model patrol, $8000k - $500 worth of fixes sold it 2 weeks later for $15,000.

Or do it the way above, buy a cheapy with wanted options then get rid of it quick smart. Maybe buy at auctions?

ea90gl · 15-05-2009, 06:14 PM

Ive done this a few times, my fiances cousin does it on a regular basis. There is a limit on the amount of vehicles you can register per year and offload before having to apply for dealer licence (not 100% sure on details). You need to be pretty mechanically minded in order to pick up faults/be able to repair yourself (don't use a mechanic or beater otherwise it will become pointless). A good car detail/polish will do wonders and can increase value by a fair amount. Grab the car ad guides and go through them with a fine tooth comb since alot of bargains come from them small ads with barely any info. I believe the main things in making buying/selling worth it is knowing the market and as mentioned having strong mechanical knowledge. No point investing in say an old BMW when some are hard to sell because of expensive parts etc etc. Like many things research will help you alot since not picking and choosing correctly can leave you with a bad taste in the mouth making you vowel to never try it again when in fact it can be done properly and you can make good money out of it

VioletGT · 15-05-2009, 06:29 PM

I have always been in 2 minds about this... Never done it my self but always thaught what if what if.... sounds like some poeple have had good luck with the cars that they have turned out... I worry about not being able to sell it for a profit.

Matty4 · 15-05-2009, 07:00 PM

Quote:

Originally Posted by GTP006

I wouldn't take the time to put them in my name, get them in and move them out in a fortnight.

This has got me curious. How do you sell a car that isn't in your name? When you purchase the car (I assume privately) do you not transfer the rego within 14 days and when you sell, I assume no roadworthy? What name do you use on the transfer papers for the purchaser?

This seems a bit off to me. Can someone enlighten me?

Cheers,
Matt

VioletGT · 15-05-2009, 07:08 PM

I would think you are the middle and even though you paid for the car your are just "passing" it on???

Feathers · 15-05-2009, 07:36 PM

My uncle has been buying cars at auctions for years, fixing them up and moving them on.
He's done pretty well out of it, but it's only a sideline to his regular business as a Towie.
It probably also helps that he has contacts in the panel/mechanical business.

Every time I see him he's in a different car. Just testing it out before selling it off.

MAV50L · 16-05-2009, 10:21 AM

I have done it a few times , but mainly on the wrecking out side.
I reckon there is less money to be made now wrecking a car out since the net and the forums etc come along , because people can get most parts from anywhere in the country now and have them put in the post.
It just annoys me now days but that people want to pay $10 for a part and instead of the old days when they rocked up to your place and pulled it off themselves , they want you to pull the parts off , pack them , take them to the post office and send them off and still only pay $10 , not taking into account the extra time and work that has gone into it.
Also when you start getting regular direct deposits into your bank account for different amounts it starts creating a papertrail , instead of the old days of cash money.
Buying and selling complete cars would be a different story and there could well be a good buck to be made if the cards fall inthe right place. Worst bit is since the world decided we are all broke and finance is not as easy to get anymore the lower end of the car market has actually increased in value.
Cars that once you would see for $1000 and would sit there for weeks until a buyer came along are now at $2499 and get snapped up pretty quick due to supply and demand.
Very good if you are selling but not so good to purchase your stock. With luck and an eagle eye you will find cars that are bargains that people dont know or dont care what they are worth.

needaXYGT · 16-05-2009, 05:14 PM

Dont go shares!!

Mr Hardware · 16-05-2009, 05:24 PM

Quote:

Originally Posted by needaXYGT

Dont go shares!!

Why not? Shutting the gate after the horse has bolted if you ask me...

jweb · 16-05-2009, 05:35 PM

If you do your homework shares, i think could be the better option provided you are willing to hold on to them for some time.The sharemarket is more or less at a slum at the moment,so in a few years if the company did not go bankrupt you would be looking at a moderate yeild. say you bought $5,000 shares at 1$ and sold them in 3 years,predicted uptrun depending on market,and market segment,ie commodoties etc.

You could sell the shares for $10,000 at 2$ per share.Chose these figures for easy maths, :1syellow1 ,just finished statistics assignment over maths.Term deposit is not worth it at the moment,as interest rates are low.If you could consider putting it into super if you are near retiring,as this gives many tax benefits,or a managed fund.
Trading cars is alot of work,and i found not very rewarding.If given the choice now i would do currency trading,however you needed to know what your doing and be upto date on market stats.

flappist · 16-05-2009, 05:35 PM

Covering your bum:

1) Get several prepaid sims on different networks and use different numbers in the ads.
2) Cash is king.
3) If no cash distribute the money over different "trusted" accounts but declare for tax purposes any monies that are not cash. If you exceed $60k make provision for GST in case you get rolled.
4) Use different addresses as much as possible.
5) De-register the cars before buying, get roadworthy and then register in new owner's name.

Even after you have been dobbed by slimy used car dealers it will be almost impossible to investigate but it is VERY important to not draw the crabs from ATO. If they even look like turning up stop everything and run away (or learn to speak tamil and hindi) because they have no sense of humour and tend to be very pedantic.

Of course all the above is just fiction from my new novel, The Flappist Identity, as I would never knowingly assist someone in ripping it up Comrade Chairman Kev Tse Tung's personal gestapo in real life.

jweb · 16-05-2009, 05:38 PM

Or how about investing in some good wine,and letting it cure for a few years,until it is in its prime.My dad did this he made 20k in 3 years,cant remember what the name was.

cjf · 16-05-2009, 05:56 PM

Finance reposession auctions are where they bargains are, and there of plenty of cars that easily clear 3 to 4 grand profit on after nothing more than a good detail.
DO NOT register the cars as this creates a electronic trail just sell unregistered as you don't need a roadworthy certificate for unregistered cars.
Sell as is and let the buyer do the road worthy and rego.
The main thing is knowing what to buy and the resale value so you make a profit in the end.

cjf · 16-05-2009, 06:17 PM

Never buy shares .
My 3 youngest kids lost most of there trust fund money.
Which was invested in shares through a trust fund set up by their grandparents to pay for Uni once they reached 18 years of age.
Would of being better if they bought them a house and rented it out for 15 years, and
banked the rent until they could buy another house and so on.
Which is what I wanted to be done with the money.
Property is the way to got I invested $12,000 (deposit)in 1999.
Now that $12,000 is $500,000 and loan has been paid out by the rental income all in 10 years.

jweb · 16-05-2009, 09:40 PM

Quote:

Originally Posted by cjf

Never buy shares .
My 3 youngest kids lost most of there trust fund money.
Which was invested in shares through a trust fund set up by their grandparents to pay for Uni once they reached 18 years of age.
Would of being better if they bought them a house and rented it out for 15 years, and
banked the rent until they could buy another house and so on.
Which is what I wanted to be done with the money.
Property is the way to got I invested $12,000 (deposit)in 1999.
Now that $12,000 is $500,000 and loan has been paid out by the rental income all in 10 years.

You never put all your eggs in one basket,and that is the same with shares,diversity is essential!!!.But i can understand why you would not support shares,i am sorry to here what happened. you are right,property would have been a much more stable investment in your case.

malazn mafia · 17-05-2009, 01:53 PM

thanks for all the replies. What are your thoughts on good secondhand cars worth selling? Is it best to just follow gut feel, or work with cars you know best? I personally enjoy working with the falcon b-series the best, having owned one and dismantled/reassembled it many times over, studied the entire electrical system, and sussed out what goes wrong with these things.

However, I realise that falcons in general are very slow sellers, dealers struggle to move them these days..

Should I be looking more at the more 'reliable'/'economical' brands such as toyotas,etc.

Jack91 · 17-05-2009, 02:25 PM

Quote:

Originally Posted by malazn mafia

thanks for all the replies. What are your thoughts on good secondhand cars worth selling? Is it best to just follow gut feel, or work with cars you know best? I personally enjoy working with the falcon b-series the best, having owned one and dismantled/reassembled it many times over, studied the entire electrical system, and sussed out what goes wrong with these things.

However, I realise that falcons in general are very slow sellers, dealers struggle to move them these days..

Should I be looking more at the more 'reliable'/'economical' brands such as toyotas,etc.

I would be. To give you an example, easily roadworthy barina's, lasers, etc were going at auction for $80, not a thing wrong with them, wash it and put it down the road with $1000 on it and id be surprised if it didnt sell that day. Perhaps keep an eye on pcikles and manheim fowles auctions and even if you only put up $500 if you lose it its no biggie if you win then keep going. Another example, my dad bought a taurus ghia for $400 sold it 3 days later $1000 didnt even do anything.

edit: yes I said $80 eight zero.

DTFRMONT · 17-05-2009, 05:52 PM

Quote:

Originally Posted by malazn mafia

However, I realise that falcons in general are very slow sellers, dealers struggle to move them these days..

Should I be looking more at the more 'reliable'/'economical' brands such as toyotas,etc.

Wagons seem to sell pretty well, When I was selling my Fairmont sedan last year, it took ages to sell, but my mum sold her AU wagon a couple of months back, it only took her a couple of weeks to sell it, and she had a few serious enquiries as well.