My business is failing... - Page 8 - PeachParts Mercedes-Benz Forum

kerry · #**106** 12-06-2014, 06:16 PM

Quote:

Originally Posted by TylerH860

1 car left. It will sell if I can ever get it fixed properly. 2004 Jetta with 92,000 miles for $4995.

My friend Bob owns the big European Salvage yard here in town and has his license to flip cars on the side. I send him alot of junk cars and fixers through my connections. He is going to let me buy and sell under his license should I do anything on the side in the future. We made the rounds of my normal wholesale sources (what few I have left) and made introductions.

One was the local Hyundai dealer, where I bid their trade ins. They get alot of junkers that I have bid on for Bob. We left bids on the vehicles, and got totally blown away. It is a closed bid sale. Leave your best number, and whoever is highest wins. We are bidding against a few other small dealers and big wholesalers. This is not a public sale.

2002 Hyundai Accent: Beat to hell and locked up motor. 217,000 miles:
....sale price $358.

2003 Saturn Ion: CVT transmission was acting strange 147,000 miles. Ok shape
...$2460...

2002 Toyota Avalon 160,000 miles. Bad suspension noise. some scrapes.
....$3866.

2002 Kia Spectra. Knocking motor 230,000 miles horrible shape.
....$433.

1997 Grand Prix Coupe. 130,000 miles. Dash lit up like a X-mas tree. Beat up, catalytic converter missing, the rest held up by tape.
...$1616

2001 Dodge Caravan: Rusted out, 150,000 miles with knocking motor.
...$415

2003 Acura MDX with 109k. Really clean but Transfer case roars.
....$7270

2002 Honda CRV with 177k. Bad Axle half shafts, heavy hail damage, 3 check engine codes, very dirty.
...$4136

2004 VW Beetle. 75k miles. Destroyed rim (sitting on spare) and scraped down passenger side. Check engine with several codes.
...$4897

This should be the slow time of year, just before people start stocking up for tax return season. If I paid those prices, I would lose on every single one.

Thanks. That makes me feel much better about spending $$$ to put a new engine in my 93 GMC truck.

suginami · #**107** 12-06-2014, 06:18 PM

Quote:

Originally Posted by kerry

Thanks. That makes me feel much better about spending $$$ to put a new engine in my 93 GMC truck.

Yes, I'm with you. You made a great decision on the truck. I can't believe the money that the Honda and Acura went for.

TylerH860 · #**108** 12-06-2014, 06:28 PM

Quote:

Originally Posted by kerry

Thanks. That makes me feel much better about spending $$$ to put a new engine in my 93 GMC truck.

Funny, one of my last big hits was with a 93 chevy I purchased at the Denver auction a few months ago. I was out there for my sister's wedding.

93 1500 extended with the 5.7, 4x4, Z71. Perfect body with no rust, but hood and roof paint was fading. Immaculate interior. 160,000 miles. Got it for $1200. Sold within hours in Wichita for $3500, which is about what it would have normally brought at auction around here. Phone was ringing non-stop. First two people tried to haggle, didn't even have the cash there to buy. Third person knew it was a gift from the heavens and didn't bat an eye.

Deals like that are just too few and far between. I was averaging $500 profit a car before I started unloading.

I remember my first purchase at a dealer auction was a 1998 Jeep Cherokee XJ Sport 4x4 with 140k. Purchased it for $1800, sold it for $2750. Cars were easy to buy, and since I wasn't greedy with the markup, easy to sell. This was in 2010.

That same Denver trip where I got the truck in September had an identical XJ, right down to the color. Brought $3500 at the sale. That was actually not a terrible buy in today's times. Also had a few Wagoneers back then. Can't believe the prices now. In 2009, I sold my 2004 Jeep Wrangler Rubicon with only 10,000 miles for $13000. What's that worth now? $18k?

TylerH860 · #**109** 12-06-2014, 06:41 PM

Quote:

Originally Posted by suginami

Yes, I'm with you. You made a great decision on the truck. I can't believe the money that the Honda and Acura went for.

We bid $5700 on the Acura. Figured it would $700 to get a used transfer case & installation, a few hundred on other random crap, then sell it for $8000.

We bid $1800 on the CRV. After getting it mechanically up to snuff and heavy detailing it would have been listed at $3995 obo, hope for $3500.

I can see someone going for gold on the MDX given its condition and desirability, but its still 11 years old with a $9000 retail book. The man who bought it is an ancient, well known wholesaler. I don't think he bothers driving them, just starts them up, makes sure they go in gear smoothly.

TnBob · #**110** 12-06-2014, 11:02 PM

You will be back.

97 SL320 · #**111** 12-07-2014, 02:02 PM

Something to think about.

I've been seeing more "closed eco system" car lots.

Someone has city towing , a salvage yard and an auto sales.

With this, one gets stock , parts and an outlet to sell cars.

Another possibility is exporters and odo adjusters.

HuskyMan · #**112** 12-07-2014, 02:46 PM

Quote:

Originally Posted by 97 SL320

Something to think about.

I've been seeing more "closed eco system" car lots.

Someone has city towing , a salvage yard and an auto sales.

With this, one gets stock , parts and an outlet to sell cars.

Another possibility is exporters and odo adjusters.

You left out the first step of the "closed eco system", the Police.
The Police ticket cars or drivers and then call the City Towing service. In many cities, one tow company has had the contract for YEARS AND YEARS AND YEARS. Read: somebody is paying somebody to "stay in the loop".

Steps to vehicle confiscation:

1. Cops call towing service.
2. Towing service tows cars to storage lot.
3. Owners either bail the cars out of car jail or not.
4. Cars that are left go to auction.
5. Cars are bought at auction then resold on sleezy used car lots complete with "odo adjusters" or exported to third world countries for recycling.

One towing service I'm aware of has a reputation for stealing anything left in the cars, i.e. your golf clubs, your tools (Snap On tools are HOT), clothing, ANYTHING. When the owner comes to the tow lot to claim their car, they are told the tow driver "didn't notice any items left in the car".

Hatterasguy · #**113** 12-07-2014, 03:20 PM

Used cars are a bad deal looking at some of those prices.

kerry · #**114** 01-27-2015, 10:06 AM

This is what pushed your business under:

http://dealbook.nytimes.com/2015/01/26/investment-riches-built-on-auto-loans-to-poor/?_r=0