Let's tear this idea apart.

[M&T]

This is for the people that want to put the time and effort in to make a few bucks on the side.

Today I see in the business news that GM is closing plants and laying off people.To say the auto industry is in for a bad year is an understatement! When I hear news like this my mind starts clicking. HHHHMMM, how can we capitolize on this?

If I walked into a dealership and negotiated for a new car do you think we could work a relatively good deal? Of course. i would pick out a gas efficent popular model.After we reached a really good deal I would then ask; what price can you give me if I ordered 100 of that modelin the most popular colors????Do you think we could score a great deal? Of course! That dealership would break all kinds of sales records for the month esp. in a bad year.Not to mention the lucky salesperson you struck the deal with!!!
Lets just say we could get an $18,000 car for $12,000. 100 of them to be exact. Now we also want them delivered to the big tent we rented on the vacant lot down the street or at the local W-mart.Alert the news that some crazy guy just bought 100 cars in one shot and is selling them for a steal,brand new, fuel efficent,factory warrenty,and throw in a $100.00 gas credit per car just for kicks....
Say you sold them and just made a $1,000.00 proffit on each one. $100,000 minus small expenses.
There are taxes tags and title issues but we would also negotiate with the dealer to help out in that area.

Not a venture I would be interested in because of all the footwork and hands on time involved but a venture to start a newbie on and gain insight into business and negotiating would do well ...

What do you all think; what are the down falls of this idea. Could we negotiate a lower price on an economy car? I haven't driven one in??????? Idon't think I ever drove one tp be honest! Anyway what could we do with this?
M&T...

 

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[Yankees338]

This is for the people that want to put the time and effort in to make a few bucks on the side.

Today I see in the business news that GM is closing plants and laying off people.To say the auto industry is in for a bad year is an understatement! When I hear news like this my mind starts clicking. HHHHMMM, how can we capitolize on this?

If I walked into a dealership and negotiated for a new car do you think we could work a relatively good deal? Of course. i would pick out a gas efficent popular model.After we reached a really good deal I would then ask; what price can you give me if I ordered 100 of that modelin the most popular colors????Do you think we could score a great deal? Of course! That dealership would break all kinds of sales records for the month esp. in a bad year.Not to mention the lucky salesperson you struck the deal with!!!
Lets just say we could get an $18,000 car for $12,000. 100 of them to be exact. Now we also want them delivered to the big tent we rented on the vacant lot down the street or at the local W-mart.Alert the news that some crazy guy just bought 100 cars in one shot and is selling them for a steal,brand new, fuel efficent,factory warrenty,and throw in a $100.00 gas credit per car just for kicks....
Say you sold them and just made a $1,000.00 proffit on each one. $100,000 minus small expenses.
There are taxes tags and title issues but we would also negotiate with the dealer to help out in that area.

Not a venture I would be interested in because of all the footwork and hands on time involved but a venture to start a newbie on and gain insight into business and negotiating would do well ...

What do you all think; what are the down falls of this idea. Could we negotiate a lower price on an economy car? I haven't driven one in??????? Idon't think I ever drove one tp be honest! Anyway what could we do with this?
M&T...

Very interesting idea! Rep+++ for the creative thread.

I think this would have potential if the area where the "tent sale" is located will have a lot of foot-traffic. It'll be tough to make this look legitimate, though, because I think people would feel like they're buying a used car if it's not done through a dealership. I also think this would be a tough thing to repeat because much of the success could be due, in part, to the publicity you'd gain for being unique.

One way to make this more effective -- in my opinion, at least -- is to come up with some way to allow the dealership to be partnered with you so it feels like they're by your side and supporting the customer's cause as well. This may make this seem like less of a "steal", but it may make the customers feel more comfortable; after all, they are buying a CAR!

 

[M&T]

HHHHMMM , this is good stuff. Maybe we could spin it as a rich well to do person wanting to help in a time of need to the public. A great price on a brand new car and a gas credit. The twist would help in the news media and you could stay anonomis-is that how you spell that?Anyway great input!

 

[White8]

It's an interesting concept but you would want to check with the manufacturer first. When I was a John Deere dealer a certain club warehouse store chain that starts with 'C' told a dealership that they wanted around 2000 of a particular model of lawn tractor to give to execs as retirement gifts. The tractors ended up in the stores, John Deere sued the chain and also threatened the dealer with the loss of their dealership. John Deere basically saw the event as the dealer granting a dealership to another company.

 

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[eTyler19]

That might a be a neat idea. My only concern though is, why wouldn't the dealership do this? They can cut the middle man out and do the tent sale themselves.

 

[M&T]

Brand new cars. Warranty is transferable to whomever buys it I would assume. I think dealers make way more proffit than we realize.Going back to my original post I didn't go into great detail but I believe the dealer would be on the phone with the corp. They would love to move 100 cars in one shot in this market. I think they would offer a deal. We could get a few thousand off I would bet.But that is all food for thought , Thank you...

 

[Mrs. BRKb]

I'd like to be the person who finances the cars at a handsome interest rate.

 

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[kidgas]

I think if the market existed in that area to move 100 cars, the dealership would already have done so. They have the infrastructure in place to cut good deals. They make a fair amount of their profit on financing and service work. Of course, I am sure they would love to sell 100 cars at a pop, but I would suspect that the buyer of those 100 cars would have a tough time selling them all. Assume $1000 profit per car and just getting stuck with 7 or 8 cars wipes that profit out. Plus, how long would it take to sell those 100 cars? What is the usual volume for that area? Not trying to be critical--just tearing apart like you said.

Also, I would suspect you might need some sort of license to set up a tent sale like that.

 

[andviv]

Big auto makers don't sell at too deep discounts to the public. Doing that reduces the value of their cars and creates resentment on current owners (it kills the resale value of their vehicles) so they wouldn't buy again.
Excess inventories are usually disposed of by selling them at discount to car rental companies. That is why the big car rental companies usually have a bunch of brand new cars from the same brand.
Also, the margins are very low in sales of new cars. The money is made on service and financing. That is why sales people push more for you to lease, as it gives them better profits.
Now, can you apply this same concept to other industry?

 

[cmartin371]

Big auto makers don't sell at too deep discounts to the public. Doing that reduces the value of their cars and creates resentment on current owners (it kills the resale value of their vehicles) so they wouldn't buy again.
Excess inventories are usually disposed of by selling them at discount to car rental companies. That is why the big car rental companies usually have a bunch of brand new cars from the same brand.
Also, the margins are very low in sales of new cars. The money is made on service and financing. That is why sales people push more for you to lease, as it gives them better profits.
Now, can you apply this same concept to other industry?

Not all true for the big rental car companies.

Dealers have a floor plan (financing) through the manufacturers which allow them to have so much inventory at certain prices. They are there to sell at retail and not wholesale, if they did that they would never survive and have there floor plan taken away.

 

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[RealOG]

Maybe we can dress M&T and Andviv up with some bling and get them to sell all the cars on TV and eBay.:smxB:

 

[cmartin371]

Maybe we can dress M&T and Andviv up with some bling and get them to sell all the cars on TV and eBay.:smxB:

Great Show!

 

[RaisingWealth]

Now, can you apply this same concept to other industry?

Industry brainstorm:
What other industry could this work with.
Requirements:
Car industry is typified as
Low Volume, High Value, (idunno?) Markup, Typically very high sales pressure


Computers? Very Little Markup, High(ish) value, High Sales pressure
High End Jewellery? High Sales Pressure, High Value, High Markup, difficulty moving product.


Any other ideas?

 

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[Yankees338]

Furniture? I think that usually is marked up highly, and it can usually retain its value fairly well.

 

[kurtyordy]

from talking with my friend who is a sales manager in a new car dealer, margins are wayyyyyy lower than that unless you are dealing with very high end cars.

The margin is in used cars.

The opps right now are in SUV's, some dealers are even refusing to take them as trades.

so if you are creative I think there are some good opps in used suv's. With the right incentives, you can move them.

 

[andviv]

Buy the used SUVs at deep discounts, have them install a device to improve gas consumption, and then make a huge news release announcing how your company is working hard to save the planet by making the cars that Americans need (yes, make sure it looks like a need) and then say you are willing to sell them at a very good price to help people and the planet.

 

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[RaisingWealth]

Furniture?

I think that's a possibility for sure!

the opps are in suv's

I can't invest in suv's for the same reason I can't invest in tobacco companies. They don't meet google's don't be evil motto

 

[Peter2]

There is very little profit in selling new cars today, thanks mainly to the internet where people can find out invoice cost and compare prices. Dealers make more money on financing, extended warranties, parts, service, used cars, extra options like alarms and window tinting, etc. Most dealers also make a few hundred dollars in dealer and prep fees on each car. (It covers the $5 they pay a guy to wash the car.)

You would lose money if you tried to do this.

 

[andviv]

I can't invest in suv's for the same reason I can't invest in tobacco companies. They don't meet google's don't be evil motto

I want to see the google guys, or anybody for that matter, to move construction materials in their Priuses. Or drive on heavy snow conditions.
Sorry, couldn't resist. Off_topic rant Off.

 

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[Redshft]

I'm pretty sure there are a lot of legal hoops you would have to get through.

Besides that, markup on smaller vehicles are only a few hundred bucks. If the sticker on a compact domestic car is $15,000...invoice was probably around $14,000. The best deal you could talk the dealership to is probably $14,000 OTD for all 100. Even that would be tough as they would still loose a few thousand dollars off 100 cars. All 100 of these cars would more than likely have to be registered...meaning USED. The resale on each one of your cars just dropped $1,000, you have lost $100K AT BEST.

There may be a way to make something like this work, but your time and effort is probably better spent pursuing something else.

 

[Redshft]

I want to see the google guys, or anybody for that matter, to move construction materials in their Priuses. Or drive on heavy snow conditions.
Sorry, couldn't resist. Off_topic rant Off.

My Volvo XC70 can do both AND get 25mpg.

 

[RaisingWealth]

I want to see the google guys, or anybody for that matter, to move construction materials in their Priuses. Or drive on heavy snow conditions.
Sorry, couldn't resist. Off_topic rant Off.

Oh, for sure. I agree wholeheartedly that their is a reason to use a SUV/Truck, but by far to many of them are just used by the denizens of suburbia to commute to their slow lane life downtown. To haul load, and construction there is really no other way.

Sorry if that came out wrong.

 

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[RaisingWealth]

Back on topic: Why isn't it possible to go straight to the manufacturer and tell them what you are planning. Pick the company with the most fuel efficient cars and make a deal with them regarding exclusivity and advertising for them. Market your plan to the decision makers and see if you can get them on board.

 

[Yankees338]

The "invoice" prices may be what the dealers pay for the vehicles up-front, but I think they get some sort of money from the manufacturers upon selling the cars. I'm not sure about on all cars, but definitely on the ones they are trying to move.

There's no way a dealer would sell a car at a LOSS of $500; when they show you that they're $500 under invoice, they may be, but they'll still probably get a $2,000 check once they sell the car.

I'm not exactly sure how this works, but I think something like this goes on behind the scenes. And, yes, I believe they do make a good chunk of change from servicing, used cars, etc...I've even heard that manufacturers rig the 'check engine' light to go off every once in a while so they're guaranteed that it's serviced! Not sure about the truth in that, though.

 

[Yankees338]

Back on topic: Why isn't it possible to go straight to the manufacturer and tell them what you are planning. Pick the company with the most fuel efficient cars and make a deal with them regarding exclusivity and advertising for them. Market your plan to the decision makers and see if you can get them on board.

I guess that'd essentially make you a dealer then...

I don't know what that would entail.

I think it'd probably require a lot to set up (like legal fees, etc...), but maybe you could begin travelling throughout the country doing that: rent large spaces -- maybe even at huge festivals or something similar -- and offer slightly discounted vehicles to the public?

 

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[RaisingWealth]

I guess that'd essentially make you a dealer then...

I don't know what that would entail.

I'm thinking a sort of limited dealer but basically that's what I'd be curious to find out.

 

[andviv]

What I found interesting, and this has been happening to me in the past couple of years, and even more so after this forum started, is that I see this type of opportunities everywhere.
I really want to congratulate the original poster as he thought about it and just came here to post the idea to see where it would take us.
Anybody else having the same type of ideas coming?
Most of those are "bad ideas", but you just need one good one, execute it correctly, and that's it, your are set.

 

[Redshft]

I guess that'd essentially make you a dealer then...

I don't know what that would entail.

I think it'd probably require a lot to set up (like legal fees, etc...), but maybe you could begin travelling throughout the country doing that: rent large spaces -- maybe even at huge festivals or something similar -- and offer slightly discounted vehicles to the public?

From my understanding, at least in NC, you must have a dealer's license to sell more than six cars in a year.

 

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[Redshft]

Oh, for sure. I agree wholeheartedly that their is a reason to use a SUV/Truck, but by far to many of them are just used by the denizens of suburbia to commute to their slow lane life downtown. To haul load, and construction there is really no other way.

Sorry if that came out wrong.

I was looking a new trucks a couple of weeks ago with my best friend. He is a sales rep for an agricultural chemical company and needs a 4x4 for going out on some of the farms he visits and a full size truck for some of the chemicals and trailers he has to haul. The salesman at the GMC lot told us they haven't sold a truck for personal use in nearly a month, all their recent sales were for commercial use.

BTW, he ended up going with the new Tundra and LOVES it.

There's no way a dealer would sell a car at a LOSS of $500; when they show you that they're $500 under invoice, they may be, but they'll still probably get a $2,000 check once they sell the car.

Usually this happens when the manufacturer approves a discount, such as employee discounts for plant workers. They usually get better deals than the dealers can. Dealer invoice isn't much more than factory. Manufacturers gain an average of $1200 per compact car sold. Probably around $3-5K for mid-size and full size cars, and over $10K for trucks and SUVs.

Your best opportunity for something like this would be in a mid/full size car.

 

[M&T]

All good stuff here. Thanks for the input. I don't buy cars at a dealership anymore. I have a mechanic who just loves to go to the auctions.It's like hunting season for him.Sometimes he goes and sees a great deal and buys it.Sits the cars out in front of his house and advertises it. he is a great guy. Last time I wanted a high end car for the wife, I wanted to go with.He snuck me into the auction"well I walked in " it's one of the bigger one's on the east coast. But he did tell me if I want to go in on regular I should get a dealers license. Couple bucks and it hangs on somebody's wall as proof.NICE.They had everything there. Got a great deal on a Cadillac SRX suv.About $6,000-$8,000 under blue book!And its a rush.He went to the line it was auctioning at and circled it looked up at the fast talking guy and came back to me. I asked what was wrong with it that it didn't go up for auction.He said it did;i asked who bought it and he said "you just did".HAHAHAH
It happened so fast I couldn't understand the auctioneer..HEHEHE