You can start to buy and sell cars for profit with little knowledge of cars and little money. However, here are five lies about this business that I need to reveal now…
Lie Number One: You must have expert mechanical knowledge of cars before you start your used car business. Untrue!
The Truth: Knowing a few mechanical things about cars certainly won’t hurt, but I started doing this with almost no mechanical knowledge about cars. However, there is some specialized knowledge about this business that is totally unrelated to mechanics that you should be aware of before starting.
Lie Number Two: Everyone must has a big expensive car lot and that is the only way to operate. Untrue!
The Truth: You do NOT need to have a small, medium or even large car lot. There are many in the used car business that operate from their own homes.
Lie Number Three: You need tons of money to start in the car business. Untrue!
THE TRUTH: There are many successful entrepreneurs in the used auto business that started with only a few hundred dollars and then pyramided their profits from each car they sold into their next profitable used car deal.
Lie Number Four: You can’t make money selling used cars because the big fortunes can only be made selling new cars. Untrue!
The Truth: The reality is that the profit in new cars is extremely low and always has been low. New car dealerships make their profits from selling new cars due to heavily pushing their customers to buy aftermarket items like rustproofing, window tinting, and many other things they may not need. And lets not forget about them adding extra points on to the loans and the money they make from the repairs they do in their service department too. The truth is that the big money has always been made from buying and selling used cars and the proof of that is how many very old and well established new car dealerships in the US have stopped selling new cars completely and are now fully into ONLY buying and selling used cars.
I sincerely hope this has helped to expose the lies about the lucrative used auto business and shed some truth on it once and for all.