Buying at auction and selling for profit...
24 April 2014, 02:44 PM
#1
Buying at auction and selling for profit...
Well it's going to be a very broad question, but has anyone bought a car at auction and sold it on for a profit?
I'm, like most of us, car crazy and wondering if I can turn this obsession into a little pocket money earner, I'm sure I'm not alone, and more sure a few people on here will have done it before.
So just after some stories really, what you bought, profit made (no figures needed if you don't want to show off), would you recommend it, what about adding yourself as an extra owner, insurance etc?
Any tips or advice welcome, it's only a dream at the moment but I'm keen to try it once, at least.
Cheers
I'm, like most of us, car crazy and wondering if I can turn this obsession into a little pocket money earner, I'm sure I'm not alone, and more sure a few people on here will have done it before.
So just after some stories really, what you bought, profit made (no figures needed if you don't want to show off), would you recommend it, what about adding yourself as an extra owner, insurance etc?
Any tips or advice welcome, it's only a dream at the moment but I'm keen to try it once, at least.
Cheers
24 April 2014, 03:30 PM
#2
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I tried and sometimes driving around found same car cheaper on side road already for sale ...so ended driving around and buying them on side road ...99% i had to service as people always check oil and moan saying it needs a service ....ebay is too expensive with all there rip off fees now so i stuck to facebook pages and did ok but then the cheap cars are all gone ..so i stopped untill i find some more cheapys
24 April 2014, 03:32 PM
#3
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You mite not be able to apply to your situation but I have bought a few cars where people were trading in and I just offed them the same or a bit more.I find people would rather give me the deal than some big company. You just need to have the funds available and find the people who are buying a car and trading in. Friends and family are a good place to start and maybe some kind of thread on hear . Its a bit of a waiting game but this is all I have to offer . Hope this can help and good look in your new venture.
24 April 2014, 04:39 PM
#4
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Used to do it , had a sting with a x plate escort tho where I found some bad welding , accident damage and I wasn't happy selling it so ended being a banger racer
Got a corsa Sri in bright red ( was pink really ) cleaned and polished it , chucked some cheap alloys on to replace the trims , lowered it on springs and a cheap rage back box and painted Calipers all in one weekend
Driving about in it and went to a cruise that night and sold it for a 500 profit !! Saw it couple years ago with a big body kit on it
Got a corsa Sri in bright red ( was pink really ) cleaned and polished it , chucked some cheap alloys on to replace the trims , lowered it on springs and a cheap rage back box and painted Calipers all in one weekend
Driving about in it and went to a cruise that night and sold it for a 500 profit !! Saw it couple years ago with a big body kit on it
24 April 2014, 06:34 PM
#6
Have done it a couple of times and to be honest, I just made my money back on both cars.
Bought a modded MK3 Golf GTi years ago that was offered to me really cheap from a friend of a relative!! Did a really good clean up on it, but then noticed that the alloy wheels would keep loosing tyre pressure, found out that the alloys had cracked on the inside, so had to get the alloys welded up and repainted!!!
Drove round in the car while it was up for sale and I struggled to shift it, ended up selling it for pretty much what it cost me + the work I had to do to it about 2 months after buying it.
Should have learned my lesson with the old Golf GTi, I ended up buying a modded MK2 Golf GTi(stretched wide wheels, coilovers, big bumpers, re-built engine etc) that the previous owner spent money on, bought it what I thought was cheap
, drove it from Wales and on the way back noticed the clutch was slipping, had to buy and fit a new clutch, but same again struggled to sell it, but I did enjoy driving round in the mk2 GTi and it kept the mileage off my Evo I had at the time, so kept the MK2 GTi for 6 months before selling it on for what I paid for it!!
Learned my lesson, buying and selling cars is hard work, and you only need one to have some sort of problem you didnt see on test drive and wave good by to your profits, Even Edd China and Mike Brewer get it wrong sometimes, and they save loads on labour charges!!
Bought a modded MK3 Golf GTi years ago that was offered to me really cheap from a friend of a relative!! Did a really good clean up on it, but then noticed that the alloy wheels would keep loosing tyre pressure, found out that the alloys had cracked on the inside, so had to get the alloys welded up and repainted!!!
Drove round in the car while it was up for sale and I struggled to shift it, ended up selling it for pretty much what it cost me + the work I had to do to it about 2 months after buying it.
Should have learned my lesson with the old Golf GTi, I ended up buying a modded MK2 Golf GTi(stretched wide wheels, coilovers, big bumpers, re-built engine etc) that the previous owner spent money on, bought it what I thought was cheap
, drove it from Wales and on the way back noticed the clutch was slipping, had to buy and fit a new clutch, but same again struggled to sell it, but I did enjoy driving round in the mk2 GTi and it kept the mileage off my Evo I had at the time, so kept the MK2 GTi for 6 months before selling it on for what I paid for it!! Learned my lesson, buying and selling cars is hard work, and you only need one to have some sort of problem you didnt see on test drive and wave good by to your profits, Even Edd China and Mike Brewer get it wrong sometimes, and they save loads on labour charges!!
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24 April 2014, 07:02 PM
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hi,
yes you can make money i have been buying auction cars for around 20 years and have made some decent money, but keep clear of the boy racer cars because there in the auction for a reason
and a bit of very useful advise go to the British car auctions there a bit more expensive to get the cars out but you get a much better quality of cars compared to privately run auction houses.
i started selling the big boys toys but as fuel prices started going up they became less desirable unless you can get a top spec, now i stick to the smaller cars that first time drivers can insure, and you cant go wrong.
and forget ebay use auto trader and the likero sell your cars i only use ebay when i got an occasional dog but sold them on ebay as a dog, no comebacks.
don't get me wrong i have lost on a few cars but over the years i have made a lot more than i have lost.
with regards to insurance you can get yourself a part time traders policy that also allows you to drive the cars yourself for SDP and COMMUTING, and your insured for your prospective buyer, only downside to a trade policy is you will not get any NCD for private cars you own and the cars can not be in your name, because then there classed as a privately owned car.
hope this helps fella and good luck if you do decide to venture into the world of buying and selling cars
yes you can make money i have been buying auction cars for around 20 years and have made some decent money, but keep clear of the boy racer cars because there in the auction for a reason
and a bit of very useful advise go to the British car auctions there a bit more expensive to get the cars out but you get a much better quality of cars compared to privately run auction houses.
i started selling the big boys toys but as fuel prices started going up they became less desirable unless you can get a top spec, now i stick to the smaller cars that first time drivers can insure, and you cant go wrong.
and forget ebay use auto trader and the likero sell your cars i only use ebay when i got an occasional dog but sold them on ebay as a dog, no comebacks.
don't get me wrong i have lost on a few cars but over the years i have made a lot more than i have lost.
with regards to insurance you can get yourself a part time traders policy that also allows you to drive the cars yourself for SDP and COMMUTING, and your insured for your prospective buyer, only downside to a trade policy is you will not get any NCD for private cars you own and the cars can not be in your name, because then there classed as a privately owned car.
hope this helps fella and good luck if you do decide to venture into the world of buying and selling cars
24 April 2014, 07:05 PM
#11
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I work for BMW and get the cars before they go to bca, we may send 50 cars a month at our site but there will only be a few gems, px prices are based on live auction prices, book prices and people's views. It can be done but it's not easy money. If you included your time, advertising costs, costs such as transport/fuel. Dvla will also contact you if you have to put the vehicles in your name, and ask if your a dealer
Last edited by blackvenom; 24 April 2014 at 07:07 PM.
24 April 2014, 07:09 PM
#12
I work for BMW and get the cars before they go to bca, we may send 50 cars a month at our site but there will only be a few gems, px prices are based on live auction prices, book prices and people's views. It can be done but it's not easy money. If you included your time, advertising costs, costs such as transport/fuel. Dvla will also contact you if you have to put the vehicles in your name, and ask if your a dealer
24 April 2014, 07:34 PM
#13
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I normally work with a 6/7k budget , then pull out what's ever over that then start again
stu
24 April 2014, 07:46 PM
#14
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did it for 5 years early ninteys made quite a few bob found bca very high as members off the public where paying more there for a car that was cheaper to buy in autotrader be carefull you dont pay over the odds i dealt with xr fords small fiestas nothing bigger than a focus
24 April 2014, 07:50 PM
#15
I prefer to buy cars cash, Ive only ever had finance on a car once, and it was a nightmare to get rid of, as you got to pay the full balance off before you sell it etc, and dealers want to pull your pants down on what its worth. So my rule now is if you cant afford it, I dont buy it. Been tempted to get finance on a new Focus RS a couple of years ago, but thought whats the point, you can be happy in a car half of what they cost and not have any debt at all, and we all know cars are a money pit and lose money all the time.
24 April 2014, 10:10 PM
#17
Thanks everyone, some great tips here - what about registering the cars in your name? Can you just not send away for the V5? Ideally I'd like to buy low miles low owner 80's/90's cars Mercedes & BMW's so I don't want to add myself as an owner if possible...
25 April 2014, 07:56 AM
#20
I have bitted and bobbed at it over the years but I usually let my Mrs drive the car for 6 months or a year or so. I've used auction a few times and mostly done ok as in ran the car for 6 months and sold it on for a couple hundred more than I paid or about the same but had 6 months out of it without having to buy tyres or fix anything much.
I look for cars from well to do folks that have recently had a bag of cash thrown at them with good history and 1 or 2 owners. Last one was a 2 owner Rover with 40k for £800 Mrs has been driving it for nearly 4yrs and in that time it's cost about £600 all in to run it.
I'll probably end up scrapping it soon but who cares for that money.
One before that was a Merc estate from that posh area where all the man U players live ( Alderny edge in manchester
) Anyhow, bought it for £1200 ran it for 18 months and sold for £1500. cost nowt then bought the Rover. There was a few before and I started out with about £2k but it's paid for around 10yrs of motoring for the mrs. Only things i've paid for in that time is a fuel pump on a previous merc, a wish bone on a forester and I did the head gasket on the Rover last year, all in around £200 + tyres and service items.
Not so sure about making a fortune but you can definitely save a fortune if your smart about it.
I look for cars from well to do folks that have recently had a bag of cash thrown at them with good history and 1 or 2 owners. Last one was a 2 owner Rover with 40k for £800 Mrs has been driving it for nearly 4yrs and in that time it's cost about £600 all in to run it.
I'll probably end up scrapping it soon but who cares for that money.One before that was a Merc estate from that posh area where all the man U players live ( Alderny edge in manchester
) Anyhow, bought it for £1200 ran it for 18 months and sold for £1500. cost nowt then bought the Rover. There was a few before and I started out with about £2k but it's paid for around 10yrs of motoring for the mrs. Only things i've paid for in that time is a fuel pump on a previous merc, a wish bone on a forester and I did the head gasket on the Rover last year, all in around £200 + tyres and service items.Not so sure about making a fortune but you can definitely save a fortune if your smart about it.
25 April 2014, 08:54 AM
#21
hi,
yes you can make money i have been buying auction cars for around 20 years and have made some decent money, but keep clear of the boy racer cars because there in the auction for a reason
and a bit of very useful advise go to the British car auctions there a bit more expensive to get the cars out but you get a much better quality of cars compared to privately run auction houses.
i started selling the big boys toys but as fuel prices started going up they became less desirable unless you can get a top spec, now i stick to the smaller cars that first time drivers can insure, and you cant go wrong.
and forget ebay use auto trader and the likero sell your cars i only use ebay when i got an occasional dog but sold them on ebay as a dog, no comebacks.
don't get me wrong i have lost on a few cars but over the years i have made a lot more than i have lost.
with regards to insurance you can get yourself a part time traders policy that also allows you to drive the cars yourself for SDP and COMMUTING, and your insured for your prospective buyer, only downside to a trade policy is you will not get any NCD for private cars you own and the cars can not be in your name, because then there classed as a privately owned car.
hope this helps fella and good luck if you do decide to venture into the world of buying and selling cars
yes you can make money i have been buying auction cars for around 20 years and have made some decent money, but keep clear of the boy racer cars because there in the auction for a reason
and a bit of very useful advise go to the British car auctions there a bit more expensive to get the cars out but you get a much better quality of cars compared to privately run auction houses.
i started selling the big boys toys but as fuel prices started going up they became less desirable unless you can get a top spec, now i stick to the smaller cars that first time drivers can insure, and you cant go wrong.
and forget ebay use auto trader and the likero sell your cars i only use ebay when i got an occasional dog but sold them on ebay as a dog, no comebacks.
don't get me wrong i have lost on a few cars but over the years i have made a lot more than i have lost.
with regards to insurance you can get yourself a part time traders policy that also allows you to drive the cars yourself for SDP and COMMUTING, and your insured for your prospective buyer, only downside to a trade policy is you will not get any NCD for private cars you own and the cars can not be in your name, because then there classed as a privately owned car.
hope this helps fella and good luck if you do decide to venture into the world of buying and selling cars
I've heard it is a lot more difficult to obtain one these days.
25 April 2014, 01:48 PM
#23
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Heres one for you stikahn has just started a thread about a 2008 330.He wants to px his 2010 golf tdi 50k in against a 330 and you could just offer him a bit more. The dealer would give him a very low price one that he him self could make a profit on.The dealer needs to factor in over heads and maybe staff etc so would still be room for profit if you was to trump the px price. It could be a bit far for you but a good example never the less IMO.
25 April 2014, 10:25 PM
#24
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I have always wanted to do this myself and have looked into it as unfortunately I lost my job a Month ago.
The main issues with this has been pointed out on other sites.
All very negative but here goes
"Selling off your driveway is not easy, people take the pi** by offering low amounts"
"Dealerships only sell the stock they do not want to other traders or auction houses"
"Hard to do undercover now, especially from a residential address. I know someone who did very well selling cars in the local rag, but he lived on a farm miles from anywhere, that always helps"
" You are not required to have a trade policy as such as long as your private policy covers everything you plan to do, but if you buy and sell enough cars then your insurance co will kick up a fuss, so you will need a trade policy"
"Anyone who sells a car for a profit needs to declare it for tax purposes"
From personal experience I stuck my mothers Citroen C1 car to sell on websites and after a few weeks the car had still not sold.
We were asking £3,500 for it but the only interest we finally got was from a trader.
He offered my mother £2,500 which I told her to take.
I have been watching how this trader had got on with the Citroen and he stuck it on his dealership for £4,000 6 Months ago.
He still has the car now.
The most important part is you have to get a car which is in very good condition but at a cheap price but it does not always work.
Be great to get feedback regarding the above but remember the quotes are from others on different sites.
The main issues with this has been pointed out on other sites.
All very negative but here goes
"Selling off your driveway is not easy, people take the pi** by offering low amounts"
"Dealerships only sell the stock they do not want to other traders or auction houses"
"Hard to do undercover now, especially from a residential address. I know someone who did very well selling cars in the local rag, but he lived on a farm miles from anywhere, that always helps"
" You are not required to have a trade policy as such as long as your private policy covers everything you plan to do, but if you buy and sell enough cars then your insurance co will kick up a fuss, so you will need a trade policy"
"Anyone who sells a car for a profit needs to declare it for tax purposes"
From personal experience I stuck my mothers Citroen C1 car to sell on websites and after a few weeks the car had still not sold.
We were asking £3,500 for it but the only interest we finally got was from a trader.
He offered my mother £2,500 which I told her to take.
I have been watching how this trader had got on with the Citroen and he stuck it on his dealership for £4,000 6 Months ago.
He still has the car now.
The most important part is you have to get a car which is in very good condition but at a cheap price but it does not always work.
Be great to get feedback regarding the above but remember the quotes are from others on different sites.
25 April 2014, 10:28 PM
#25
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[QUOTE=MRSIMPSON;11412207]Well it's going to be a very broad question, but has anyone bought a car at auction and sold it on for a profit?
I'm, like most of us, car crazy and wondering if I can turn this obsession into a little pocket money earner, I'm sure I'm not alone, and more sure a few people on here will have done it before.
So just after some stories really, what you bought, profit made (no figures needed if you don't want to show off), would you recommend it, what about adding yourself as an extra owner, insurance etc?
Any tips or advice welcome, it's only a dream at the moment but I'm keen to try it once, at least.
Cheers
Hi mate
Looking to do the same myself so I am very pleased you have posted this question.
I'm, like most of us, car crazy and wondering if I can turn this obsession into a little pocket money earner, I'm sure I'm not alone, and more sure a few people on here will have done it before.
So just after some stories really, what you bought, profit made (no figures needed if you don't want to show off), would you recommend it, what about adding yourself as an extra owner, insurance etc?
Any tips or advice welcome, it's only a dream at the moment but I'm keen to try it once, at least.
Cheers
Hi mate
Looking to do the same myself so I am very pleased you have posted this question.
25 April 2014, 10:51 PM
#26
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i have had my trade policy for around 10 years which you will need to have if you want to get the logbook (V5) from the auction house or the car will have to go in your name as the new keeper,
also if you buy a car privately you give the registered keeper the yellow V5C/3W section attached to the log book, and they have to send it off to the dvla to register that they have sold it to a motor trader and you keep the log book so as not to add any more owners.
the trade policy i have states i have to sell a minimum of 8 cars per year, and i have to register each car sold with them annually,
you also have to inform hmrc of your extra income by way of your tax returns, because if you are a registered mototr trader they will catch you eventually, its not worth trying to dodge the tax man as the insurance company has all records of the cars you have sold and if you don't inform them of the minimum 8 cars they will not give you a trade policy the following year.
hope this helps
26 April 2014, 09:25 PM
#27
hi,
i have had my trade policy for around 10 years which you will need to have if you want to get the logbook (V5) from the auction house or the car will have to go in your name as the new keeper,
also if you buy a car privately you give the registered keeper the yellow V5C/3W section attached to the log book, and they have to send it off to the dvla to register that they have sold it to a motor trader and you keep the log book so as not to add any more owners.
the trade policy i have states i have to sell a minimum of 8 cars per year, and i have to register each car sold with them annually,
you also have to inform hmrc of your extra income by way of your tax returns, because if you are a registered mototr trader they will catch you eventually, its not worth trying to dodge the tax man as the insurance company has all records of the cars you have sold and if you don't inform them of the minimum 8 cars they will not give you a trade policy the following year.
hope this helps
i have had my trade policy for around 10 years which you will need to have if you want to get the logbook (V5) from the auction house or the car will have to go in your name as the new keeper,
also if you buy a car privately you give the registered keeper the yellow V5C/3W section attached to the log book, and they have to send it off to the dvla to register that they have sold it to a motor trader and you keep the log book so as not to add any more owners.
the trade policy i have states i have to sell a minimum of 8 cars per year, and i have to register each car sold with them annually,
you also have to inform hmrc of your extra income by way of your tax returns, because if you are a registered mototr trader they will catch you eventually, its not worth trying to dodge the tax man as the insurance company has all records of the cars you have sold and if you don't inform them of the minimum 8 cars they will not give you a trade policy the following year.
hope this helps
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