Car auctions - buying and selling

[amar1978]

Hi
Went to car auction in nottingham earlier today, some cars looked like you can make good money on. I run several ebay businesses aswell as a website. So was thinking of getting in to buying and selling from auctions. Anyone here already do this? any bad experiences? any advice would be welcome.

Thanks
Amar

[Eric Mc]

Don;t forget to notify the Revenue

[Leftie]

amar1978 said:

Hi
Went to car auction in nottingham earlier today, some cars looked like you can make good money on. I run several ebay businesses aswell as a website. So was thinking of getting in to buying and selling from auctions. Anyone here already do this? any bad experiences? any advice would be welcome.

Thanks
Amar

I had a friend who did it and my neice's hubby makes a living from auctions. Both speciised in particular cars. One used only to buy only Fiestas and Pugs, the other only buys low insurance group cars.

The Fiesta/Pug guy got nailed by trading standards as he was buying one a week, tidying it up, putting a new MOT on and selling it in the classifieds. The regularity of sales suggested he was 'Trade' and they prosectuted him after a few warnings and threatened him with business rates at his house where he kept the cars. They have software that trawls the classifieds looking for mobile/landline repetitions. Ebay might be safer on that front but you can bet TS will be watching. Easy for them to check for sellers in their area, look at the history and then ID them as traders. Not sure how they would find out who you are except to bid or check anty visible reg numbers on photos.

Bit naughty trading to the public without declaring you are indeed trade?

The other guy buys from auction and through private classifieds and uses Autotrader and has his own web site to sell. He is a bit pricey but I think and makes money on financing and warranties, but also offers local driving schools free-ads on his site to get the newly qualified students and does the 7 day free insurance thing for them so they can drive away today. Obviously knows his market, has a trusted garage for handling the cars from auction and his own car trailer/transporter as he is a one man band. He also has in-door storage.

Two very different models of business.

[emicen]

Profitability depends very much on what auctions you attend and when.

Thanks to shows like the Used Car Roadshow and Wrecks to Riches, everyone thinks the auctions are the place to be to buy a car.

Every Friday they'll wander in, Parker Price Guide fresh from purchase at the filling station, and promptly get the utter arse ripped out them by the auctioneer and real traders. Bids come from the traders when they sus the buyer is really hooked on one car, and the bids come shooting off the walls from the auctioneer. You need to watch what goes on for a while before you start buying or you'll get turned over too.

Thats the Friday sale, starts at 2:30pm. The Wednesday sale is completely different, as people cant really get off work early enough to make an 11am start. Hence, the good prices can be had there.

Quick couple of examples:
- 95 Faded Blue Punto 55S bought by my mate for £150, out the door for £200, on ebay with 6 months tax for £250. Sold at £330, so after fees and easy £60 profit. That was last summer.
- 96 Faded Blue Punto 55S at auction last Friday. Big scuff and dent all down one side still with the other cars paint on it. Dribbling (not dripping, DRIBBLING!) petrol out the whole way up to the bidding ring. Bidding went to over £300! That'd be £350 out the door, over £400 taxed and how much does a replacement door and fuel tank run to

Madness.

[blindswelledrat]

emicen said:

.

Quick couple of examples:
- 95 Faded Blue Punto 55S bought by my mate for £150, out the door for £200, on ebay with 6 months tax for £250. Sold at £330, so after fees and easy £60 profit. That was last summer.
-
Madness.

Why would anyone go through all that for £60????????
The phrase 'easy £60' is a little off I would suggest. I would call it an extremely difficult and pointless stressfulll £60.

[emicen]

All what?

Go to auctions with a grand.
Buy 4 cars.
Take pics of said cars.
Pap them on ebay.
Walk away with 20-25% return on your money in 1 week.

[mcflurry]

emicen said:

Walk away with 20-25% return on your money in 1 week.

and if one doesn't sell then you are back to square 1...

[emicen]

Gosh, dya think maybe thats where the skill element comes in to it?

If you could do it with every car that passes through there would be a hell of a lot more car dealers than there is in this world

[PieroW]

If you find an auction where cars are selling below trade price please let me know as I can't seem to find any at the moment!!