Today, the secondary car market is more developed than ever. This business is popular because of its apparent simplicity, because many people think that to buy cars you only need to understand the device of the car. However, this is not the case. In this business, as in any other, there are peculiarities and nuances.
Essence of the work
Before you start buying cars, you should carefully study what this business is all about, how auto dealers work. As a rule, the scheme is quite simple: a reseller acquires a used vehicle at a minimum price, puts it in order and sells it, but with an extra charge. The difference between the purchase and realized prices is the businessman’s income.
It would seem that everything is simple. But many novice auto dealers abandon this business just when they realize that repairing a car “flew a penny”, that the sale would not only bring no profit, but would not cover expenses. In order not to lose more than you can get, you need to be well versed in technology, otherwise the risk of buying a car increases, the repair of which will take an amount in excess of the market value of the vehicle.
Of course, knowing how a car is built is not everything. Car resale is a very specific business that requires an individual approach to each transaction.
Of course, this business has its advantages. For example, the main advantage is the optional availability of a significant starting capital. You can simply start with cars in a simpler class, and return the profits from them again into the business and buy a car of a higher level.
For many, selling cars to resellers is the last chance to get rid of a car without repairing it. Therefore, such customers will seek to find a reseller. Many of these people know how to recognize a car dealer who has just started their business and will try to sell him a car with a mark-up.
How to open a business?
First of all, to become a reseller, you should legitimize your business, namely, open an IP or AO. It is optimal to register a joint-stock company, but if this is the first experience for an entrepreneur, then one can limit oneself to IP.
Of course, many are trying to save time and money, and do not register their own business, but it’s better not to do so. For illegal entrepreneurship in Russia, very serious penalties are provided. And when such a businessman is caught, it will be too late to do anything.
Paperwork
In detail about how car dealers make out. There are currently two ways:
- Re-registration. Re-registering the car itself guarantees full confidence on the part of the buyer. But for this you will have to spend additional money and time. True, in cooperation with lawyers on the basis of a previously signed contract, the costs will not be too high. However, it should be borne in mind that ownership does not give an automatic right to be inscribed on the car passport. To do this, you will also need to re-register the car and the CTP insurance policy at the nearest traffic police office. It will take some time and will cost about two thousand rubles (payment of state duty).
- Resale without registration. This method is especially popular today. In connection with a recent change in legislation, there is now a legal opportunity to purchase a car without changing its license plate number. This option has become optimal for most resellers. Especially after the cancellation of the need to deregister vehicles.True, it is important to consider that the previous owner may well appeal to the traffic police with a request to terminate the registration in order to protect himself from possible fines due to violations of the new owner. He has such a right after ten days from the date of sale, if the buyer has not yet re-registered the car. There is another drawback, but related to a potential client. Many, knowing how outbids do not fit into a car passport, prefer not to make such transactions at all in order to protect themselves from future problems. Re-registration will already be done by auto dealers. And to do this is not always possible - the car may be arrested due to debts of the seller. It is better to pre-punch a car on the basis of the traffic police.
Where to start a business?
After registration, you can proceed directly to the organization of the business. It all depends on the availability of finance, although you can start with minimal investment. To reduce the investment at the start, you can start work at home. To do this, you only need a computer with access to the Network and a mobile phone.
First, you should analyze all the sites that have ads for the sale of cars (for this you can configure automatic search for such ads, and special program for auto dealers). There you can find out the average cost of models with which I would like to start. According to experts, it is easiest to start a business with a domestic car. Selling foreign cars can bring more income, but will take more time and require more serious investments.
Speaking about car models, it is necessary to mention one more skill that a successful reseller must have - this ability not only to understand the structure of cars in general, but also in the merits of specific models. This is important not only when choosing which car to buy, but also in how to profitably advertise the product for subsequent sale.
Auto Selection Criteria
When choosing a car, you should rely on appearance criteria that can tell a lot about the condition of the car. How to determine? The reseller of a car should not be misled by the seller’s praises and fake beauty. Here is a list of criteria by which to identify fraud.
The main criteria when choosing a car:
- Appearance (you need to pay attention to thresholds, bumpers and a radiator grill, if there are absolutely no marks and scratches there, then perhaps the car was tinted).
- Body clearances (it is necessary to compare the clearances between the doors on both sides, if they differ - most likely, the car is broken).
- Fasteners (unpainted fasteners on doors can often give out a broken car).
- Fastening of body parts (if there are no fasteners or differ from each other - there was a dismantle).
- Door handles (new handles - a sign of body repair).
- Seams (factory seams are accurate and treated with high-quality sealant).
- LKT layer (a thickness gauge should be used; the factory LKT layer is thin and even).
- Stains (spots of paint with a slightly different shade indicate repainting).
The main thing when inspecting a car is to be careful, most sellers will try to hide the “past” of the car by any means.
Repurchase process
After the goal is selected, the outbid begins directly. Usually car dealers, in order to have a fallback, choose several suitable cars at once.
Having contacted the seller, you should stipulate all the nuances of the transaction. Do not forget that all documents must be provided with the car. It is better to go to the place of the transaction yourself and personally inspect the car. So it will be possible to assess the technical condition of the acquisition, to see flaws, if any. In the event that everything is in order, you can conduct a transaction.
Sale
After a successful transaction, you need to fix and improve the appearance of the car, and then put the car up for sale.To do this, it is better to use the most popular message boards with a large number of visitors. In addition, to speed up the sales process, you can independently look for a customer among the proposals for the purchase.
Additional means of sale
Of course, placing an offer to sell on the Internet is the fastest way to find a customer. But to speed up the process, you can use some additional tools. For example:
- advertise in newspapers and magazines;
- rent a place in the car market;
- rent a place on the exhibition platform.
Of course, additional methods should be used only if a high-class foreign car is sold, in which significant funds have been invested. For those who are just starting to comprehend the field of a reseller and not counting on particularly large amounts of revenue for a car, all these methods, which, by the way, will require investments, may simply be inappropriate.
approximate cost
The following is a small example of the possible cost of buying a car at the beginning of a reseller's journey. So, the reseller plans to find a domestic car. Suitable vehicle: VAZ-21099, 2002, with little damage to the body and without any additional elements (mats and covers). The average cost of the car will be about 45 thousand. To bring the car in order and give a presentable look you will need:
- paint the car (about 6000 rubles);
- polish (500 rubles);
- purchase covers (5400 rubles);
- buy rugs (1100 rubles).
Total 13 thousand investments. Adding 45 thousand prices, you get the final cost of 58 thousand rubles. The average cost of a car in this state is already 75 thousand. Consequently, the total income is about 17 thousand. A very good amount for the first attempt. Over time, revenues will only grow, of course, with the class of cars purchased.
Beginner Tips
As already noted, in order not to work at a loss, it is important to study in advance all the pros and cons of the acquired model. You should find out what mileage and life are considered the maximum permissible for a particular machine. It will not be superfluous to inquire about the cost and availability of repairs.
When buying, you should carefully inspect the vehicle for hidden defects, and if possible, test the car before buying. When buying a car, you can use your knowledge to reduce its cost. Experienced car dealers say that, as a rule, the owners are initially ready to give in a little and overstate the value of the object, given the possibility of bargaining. In advance, it is worth calculating how much the repair will cost and how much it will turn out in the end. Perhaps the purchase will be simply unprofitable.
In search of a car, you can come across the same reseller who is trying to get rid of a disadvantageous acquisition. There are no exact rules on how to recognize a reseller of a car of this type. Therefore, you should just be careful.