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How bad are auction prices right now during COVID? Should I wait to get my license?

Jul 14, 2020
3
0
First Name
Westley
Hey guys! Had a few concerns and not sure where to go to really get these questions answered.

I live in GA and am currently going through the process of getting my dealer license. My current goal is to buy cars from auction, fix them myself and sell them in hopes to make a profit. I'm planning to start small and only buy 1 or 2 cars to begin with.

My question is, how has COVID affected auction prices? Should I try to buy private party or should I just wait until COVID passes before starting up?


Thanks!
 
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ChrisR

Boss
Oct 12, 2015
295
268
First Name
Christian
They're high. Crazy high on some units.

If you want to get an idea for where things are, what would be bad about getting the license now?
 
Jul 14, 2020
3
0
First Name
Westley
If you want to get an idea for where things are, what would be bad about getting the license now?

Thanks for the reply! Nothing would be inherently bad about me getting the license now I suppose. So far I've added up the initial costs ( real quotes, and prices ) to be around $1500. That includes the license fee, insurance, bond, office space, fingerprints, etc.

I suspect I will officially have my license sometime between August - September if thing go correctly.
 

ChrisR

Boss
Oct 12, 2015
295
268
First Name
Christian
May as well start the process now then, so by the time you are able to buy, the market may come down some, and you can start shopping for inventory. Or, prices will still be higher, and you can start shopping for inventory.
 

ryan.leslie

One of the good guys
Apr 20, 2009
615
556
First Name
Ryan
Welcome to the forums @Sufarry.

I'd like to make a soft plug for the GIADA. GA has one of the best independent auto dealers associations in the country. Have you investigated membership with the GIADA? They have vendor relationships that provide key services at a reduced rate for members too. It may be worth a look.

Again, welcome to the forums.

Ryan
 
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Reactions: georgenenni
Jul 14, 2020
3
0
First Name
Westley
Welcome to the forums @Sufarry.

I'd like to make a soft plug for the GIADA. GA has one of the best independent auto dealers associations in the country. Have you investigated membership with the GIADA? They have vendor relationships that provide key services at a reduced rate for members too. It may be worth a look.

Again, welcome to the forums.

Ryan

I'll definitely look into their membership! That's wonderful. Was hoping there would be some sort of class or learning/training center!
 
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Tallcool1

Boss
Mar 17, 2014
388
235
Awards
1
First Name
Clint
I'll definitely look into their membership! That's wonderful. Was hoping there would be some sort of class or learning/training center!

Welcome!

You will inevitably cross paths with the GIADA. Georgia mandates continuing education to keep your license, and the GIADA is where you go for that training.

Yes, the market is just crazy high right now. However, the market really has nothing to do with some price points. You mentioned buying and fixing up vehicles. If you are trying to sell $5,000 and under vehicles, it really doesn't matter what the market is. If you are trying to buy Lease Turn In vehicles, be careful.

As others have said, just jump in! You will have the license, and when the market suits you then pull the trigger.

If you are willing to do the homework, you can buy a lot of good inventory from FB Marketplace or possibly Craigslist.

Good Luck.
 
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Reactions: craigh

Retail My Ride

Lot Lizard
Feb 14, 2020
40
21
First Name
Jim
Sufarry - congrats on taking the first steps to get your dealer license. Here is a better way to view this - auctions are just one "Source" for vehicles. Albeit, they are the largest single source, BUT right now they are your worst source for smaller, independent dealers, especially start-ups like you. Smart dealers are learning how to source their inventory from alternative places and becoming more creative in the way they get them on their lot - non-traditional sourcing targeted toward private party vehicles is THE place to be! Did you know approximately 14 million vehicles are sold each year by private party owners?

This may sound like a sales pitch (Chris and Ryan may have they finger on the Blog Violation button), but please spend a few minutes checking out our Free solution for inventory sourcing at RetailMyRide.com. Dealer sign-up is Free and if you reach out to me, I will personally coach you on how to create a successful, profitable and professional consignment program to source great vehicles for FREE. Message me through the site and lets connect
 
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Reactions: Tallcool1
Nov 9, 2020
1
0
First Name
Nion
You don't need to wait you can use this time. For example at this days people try to sell units with low price. Off course you need to check price lists and scan situation. How do you plan to conduct the auction? There are so many interesting ideas one of them is auctioning on wheels from auctionstreaming. For example, an interesting thing. Especially now that the COVID-19 has driven many people home.
 
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Wmpiam

Boss
Dec 9, 2020
5
4
Awards
1
First Name
Karl
Welcome!

You will inevitably cross paths with the GIADA. Georgia mandates continuing education to keep your license, and the GIADA is where you go for that training.

Yes, the market is just crazy high right now. However, the market really has nothing to do with some price points. You mentioned buying and fixing up vehicles. If you are trying to sell $5,000 and under vehicles, it really doesn't matter what the market is. If you are trying to buy Lease Turn In vehicles, be careful.

As others have said, just jump in! You will have the license, and when the market suits you then pull the trigger.

If you are willing to do the homework, you can buy a lot of good inventory from FB Marketplace or possibly Craigslist.

Good Luck.
I cannot agree enough with you in regards to FB marketplace. I am notorious amongst my peers for driving beaters, and it is largely due to smoking deals I've found on FB marketplace. For someone just starting out flipping cars, it is a goldmine (depending on location of course.) I have made money on every vehicle I have bought from marketplace, and that's with me just buying them for personal use then selling them when I find something better. With a dealer license it is an amazing tool.

*Disclaimer* State laws vary on how many private sales you can make annually, stipulations regarding how long you've had the vehicle registered, and whether you can profit. My state has no restrictions beyond stating that you cannot use it as a primary source of income without a license. I largely sell my FB finds to dealerships once I have cleaned, repaired, and driven them. It's definitely a hobby for me and I would only recommend it if your state allows it, and you do it in an ethical manner.

I wish OP the best of luck!
 
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Reactions: bshoeduke