My business is failing... - Page 3 - PeachParts Mercedes-Benz Forum

Txjake · #31 08-05-2014, 03:18 PM

Bummer. Since I live in ICT now, if you want to go BHPH, I'll do the repos for you for a reasonable fee. Looking for some fun and adventure...

Idle · #32 08-05-2014, 04:33 PM

Quote:

Originally Posted by Hatterasguy

I think what's happening is that the car business is going threw a change.

Inventory on used cars remains tight and will for some time, and as a result prices are up. This is driving a business model change to buy here pay here lots. Throw in the internet which makes private sales even simpler, and super complicated modern cars, and its a perfect storm for the small used car lot.

Unless Tyler can specialize in a niche market he is probably fighting for an ever shrinking piece of pie with lots of other people.

IMHO even new car franchises are a poor business now. Massive overhead and your competing thanks to the internet with dealers from hundreds of miles away, now throw in what Tesla is trying to do... Back in the day a local dealer could count on local business, now a lot of dealers are online and on commodity vehicles like pickups for example its child's play to get half a dozen bidding off against each other all over the tri state area.

I purchased the Mrs. a new car recently. She was pretty sure of what she wanted and what she wanted was not available just anywhere. But I did, due to the net, find one only a few hundred miles away. The right color, the right interior, the right options and the right price.

I live close to Dallas, but the car she wanted was so rare that I finally found one at a small dealer in Kansas. A day trip was a small price to pay to make her happy.

I don't think this is news to anyone here but cars are an emotional purchase. You have to cast a wide net to catch a buyer and the only way I know to do that is to constantly be updating your web site. Each car is different and each used car is unique. If someone is looking for just that car you have to let them know you have it in stock at the right price and ready to drive away.

Hopefully it is not too late to give this a try. After all, Craigslist is free.

DieselPaul · #33 08-05-2014, 04:37 PM

Quote:

Originally Posted by Idle

After all, Craigslist is free.

Not for dealers

lorainfurniture · #34 08-05-2014, 10:08 PM

Quote:

Originally Posted by DieselPaul

I did not attempt to downplay Tylers situation, I feel for you Tyler. However I do not like the notion that any successful businessman is a crook. Maybe that is not what you meant, but I read it that way.

My father is in the car business, and I am in a different industry, but play with cars on the side. In the car business and in manufacturing I like to think we deliver a quality product and good customer service, and we have lots of repeat customers.

I do not know any business that is "easy" to run. If you're doing something you love and enjoy it can take the sharp edges off of the rough days, but work is hard.

That's not what I meant, but I see how you could read it that way. I would say that I am at least somewhat of a successful business man, and I certainly am not a crook, or dishonest in any way. It just seems that in the car business, you have to be very "cut throat" as they say in order to survive. Sometimes that includes "not mentioning" that some parts or accessories of a car do not work. Whether you consider that as being dishonest or not is really subjective, and not really worth arguing about. Everyone has a different opinion.

In order to survive and be profitable, one has to adapt to the ever changing world. My store 14 years ago is completely different from what it is today. By next year, I predict it will make another "big" change, and morph in to a mostly e commerce business. If I would have dug my heels and been resistant to change, I would have been out of business many years ago.

TylerH860 · #35 08-05-2014, 11:39 PM

Certainly there are other options, as far as reinventing, but I'm burned out. Inventory is such a huge challenge, and even if I were a charity giving them away, people would make me out to be a crook. The ones that don't haggle me to insanity don't have a dime to their name. No other business is it like this.

I am lucky to have some very good opportunities which will be more stable and lucrative. As things get more set in stone I will update, but like others have posted, this is a good thing.

My body guy/painter and I are talking about getting a warehouse and a dealer's license, buying the slight to moderately damaged, clean title repos and trade ins, fixing & flip. It will be part time for me, keeping me in the biz somewhat. We can also do the occasional fun car as the good or fun opportunity presents itself.

I've already sold 6 cars for the month, so no complaints. If I can keep it up I'll bust the record set in May and put myself in the black. Things slow down so dramatically after this, so I know I can't keep it up.

alabbasi · #36 08-06-2014, 12:01 AM

Selling cars is a tough tough business. I have a 92 volvo 745T for sale that I bought from a friend while my car was getting fixed. One owner vehicle, runs great, very clean interior and ice cold a/c. I have it listed for $1850 firm.

Had countless time wasters asking for pictures and then a fellow test drove it today. He took it for a drive with his wife, asked a bunch of questions and then told me that "we were too far apart" because the last one he bought was for $200.

If I had to do this for a living, I'd punch someone in the face.

TylerH860 · #37 08-06-2014, 12:13 AM

Quote:

Originally Posted by alabbasi

Selling cars is a tough tough business. I have a 92 volvo 745T for sale that I bought from a friend while my car was getting fixed. One owner vehicle, runs great, very clean interior and ice cold a/c. I have it listed for $1850 firm.

Had countless time wasters asking for pictures and then a fellow test drove it today. He took it for a drive with his wife, asked a bunch of questions and then told me that "we were too far apart" because the last one he bought was for $200.

If I had to do this for a living, I'd punch someone in the face.

Yup, I had a Sunday afternoon/evening wasted by a young couple who couldn't understand why I couldn't come down at all on the car. Was making $600 off of them, showed them what I paid for it and repairs. Showed them every book value that showed it was way below retail on all 3 book value websites, even a little below private party. Laid out my expenses and how much I have to make before I start making money. The male even said, "I know its a great deal, but..."

They had never bought a car before, and were idiots that couldn't make a decision. I had 2 other buyers waiting to pounce and they couldn't understand why I couldn't hold it for them overnight so they could "think about it".

Finally had them wrapped up around 7:30 PM on what was supposed to be my day off.

Stuff like this happens every day. If I posted it all I would get too angry.

t walgamuth · #38 08-06-2014, 06:31 AM

If it makes you angry that does not seem like a good sign for being in the business.

You gotta be able to laugh off the low balls. Trying to never haggle is a fools errand in auto sales, IMHO.

I'd price them so I could haggle a bit and make the sale.

alabbasi · #39 08-06-2014, 09:49 AM

Quote:

Originally Posted by t walgamuth

If it makes you angry that does not seem like a good sign for being in the business.

You gotta be able to laugh off the low balls. Trying to never haggle is a fools errand in auto sales, IMHO.

I'd price them so I could haggle a bit and make the sale.

I don't think that there is any advice that could be given in this situation. The fact is that there are a lot of people in this country with too much time on their hands and no money in their pockets. It seems to me that a lot of them troll the craigslist ads looking for 'deals' that they could not afford anyway. They'll burn up your time asking for pictures and requesting test drives when they have no ability to pay for anything.

It's easy to say that one should be able to laugh it off. For the tire kicker, it's a fun way to spend an afternoon, but after hour after of your time gets wasted by 10,15,20 of these idiots, you'll eventually get tired of it.

This is why I usually end up dismantling perfectly serviceable cars and selling them on as parts. The effort required is usually nothing compared to the frustration you get from dealing with time wasters.

Hatterasguy · #40 08-06-2014, 08:36 PM

This is why when I'm done with my truck I'll take the hit and trade it in, I don't want to deal with selling it private party.

TwitchKitty · #41 08-07-2014, 02:41 PM

Sorry to hear this but in a way it probably will lead to something better even if you end up staying where you are. I have always lived my life believing that there is always something better waiting around the next corner and I have been lucky that way. Wishing the best for you.

The guys I know who are making money from used cars are fixing and selling crash damage cars. They say the risks are pretty high. When you take a hit on one it can wipe out the gains for several.

Skid Row Joe · #42 08-07-2014, 03:34 PM

Quote:

Originally Posted by TwitchKitty

Sorry to hear this but in a way it probably will lead to something better even if you end up staying where you are. I have always lived my life believing that there is always something better waiting around the next corner and I have been lucky that way. Wishing the best for you.

The guys I know who are making money from used cars are fixing and selling crash damage cars. They say the risks are pretty high. When you take a hit on one it can wipe out the gains for several.

Not necessarily. The guys that believe there's always something better "around the next corner" many times are job-hoppers, that in most cases never amount to anything substantial because they never stick it out to reap their hard work in massive rewards. -Scores and scores of those guys around.

Skid Row Joe · #43 08-07-2014, 03:38 PM

Quote:

Originally Posted by TylerH860

Yup, I had a Sunday afternoon/evening wasted by a young couple who couldn't understand why I couldn't come down at all on the car. Was making $600 off of them, showed them what I paid for it and repairs. Showed them every book value that showed it was way below retail on all 3 book value websites, even a little below private party. Laid out my expenses and how much I have to make before I start making money. The male even said, "I know its a great deal, but..."

They had never bought a car before, and were idiots that couldn't make a decision. I had 2 other buyers waiting to pounce and they couldn't understand why I couldn't hold it for them overnight so they could "think about it".

Finally had them wrapped up around 7:30 PM on what was supposed to be my day off.

Stuff like this happens every day. If I posted it all I would get too angry.

Unless you have ppl to handle these things that work for you, it's unlikely it'll get better, IMO.

The massive money is being self-employed, if you can find something to accomplish that will yield it. Working for someone can be rewarding, but not necessarily the biggest money.

SwampYankee · #44 08-07-2014, 03:39 PM

Quote:

Originally Posted by Hatterasguy

This is why when I'm done with my truck I'll take the hit and trade it in, I don't want to deal with selling it private party.

I swore I'd never buy another vehicle from a dealer and would never trade a vehicle in. Having bought and sold vehicles in the past 2 years on CL, the grief and aggravation factor in dealing with private buyers and sellers has almost tipped the scales towards doing just that.

iwrock · #45 08-07-2014, 04:10 PM

Quote:

Originally Posted by SwampYankee

I swore I'd never buy another vehicle from a dealer and would never trade a vehicle in. Having bought and sold vehicles in the past 2 years on CL, the grief and aggravation factor in dealing with private buyers and sellers has almost tipped the scales towards doing just that.

Yep.

I've decided to unload my Powerjoke, and... Well, the sort of people I have coming out to look and kick the tires is mind blowing.

I'm talking to a local dealer, trying not to take a bath on the truck, but c'est la vie.