How how do second hand car traders make money?

Question

How how do second hand car traders make money?

Answer 1

They buy cars they find cheap online or on the side of the rd. ect or from an auction that need little work done to them, they have the work done and then re sell the vehicle for more than they bought and spent on it....  

They usually have a good relationship with a mechanic and a body shop, so they are getting work done for cheaper than someone from off the street would in return for sending that shop lots of work

Also, they know what kind of cars people are looking for, they know what sell's and they know how much they can get for certain vehicles so they know what to buy

They usually only make about $300 to 1,000 on each car, but if they are selling 8 cars a month - that can be a nice pay...

Answer 2

They buy at dealer only wholsale auctions then turn around and retail them.

Answer 3

They buy cars through auctions (i.e. older vehicles that are traded in at the larger dealers or vehicles that have something wrong with them), put as little money into them as possible (hopefully enough to make them legal through DOT laws), and sell them for Kelley Blue Book "Suggested Retail Value".  In theory, a ten year old American sedan for instance, can be purchased at an auction for about $1000-2000.  The dealer can then put $500-1000 into it (tires/oil change/bodywork) and sell it for $4000-5000.

Second hand car dealers make far more than $300-1000 per copy.  There is no way they could survive on that!  In fact, it is easier to make money on used cars than new ones, which is why used car salespeople make more than new car salespeople at large car lots with plenty of inventory.