Dealer License Scams
Dealer license scams
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What is a floorplan?
Floorplans are one way dealers finance their inventory. With interests rate low, car dealers are benefiting. Floorplanning fees have also dropped in recent years because of increased competition for dealer business.
Despite these low rates, I recommend dealers not use floorplans if at all possible. Even though its not that difficult to cover the interest on floorplanning, its prudent financial advice to avoid those interest charges.
Also, you can't get the title UNTIL you pay off the floorplan loan! What if you sell a car to a client who wants to finance the car at their credit union. BUT, the credit union tells you that they won't fund the loan UNTIL they see the registration slip naming them as leinholder. Well, you can't title a car without the title and the floorplan company will not release the title til it is paid for ad the credit union won't give you the money til it is titled! That puts you in a pickle if you can't pay off the floorplan company to get the title! Just be careful.
Putting cars on floorplans puts added pressure on your to get the car sold in 30 - 60 days. Its true, that can be good pressure but let me tell you, it can be BAD pressure as well.
The more cars you have in inventory that is NOT on a floor plan is a good thing.
Floorplan companies are being more and selective whom they will loan the money. Most floorplanner requires the dealer to a personal guarantee and a physical inspection of the inventory.
My advice: I have seen more than one dealer get into financial trouble with a floor plan. If you do use a floor plan, for the flexibility, make sure you have the cash to cover your credit line. My take on it: use cash!
George
Dealer Auction List
Download the list of Auctions from Manheim & Adesa & Government Auctions
DOWNLOAD: Manheim Auction List
DOWNLOAD: ADESA Auction List
LINK: Government Auctions
Women in the Car Business
AN OPEN LETTER TO ALL WOMEN,
FIRST, YOU CAN DO THIS BUSINESS . NO lie about that. Its a fact!
I have seen women rock the auto world. In all honesty, and I mean NO offense, just the fact your a WOMAN will get you in the door faster than anything else.
Historically, cars has been mainly a MAN'S business AND because of this fact, its easier than you would ever think for a woman to make a ton of money in this business. Who would a buyer rather buy from, a man or woman, when all he ever sees are other men?
Here are a few example just off the top of my head:
- One lady friend of mine, Lori, is a wholesaler in Florida. Let me tell you, she makes a ton of money and she loves it. She gets in the auction lanes and buys those cars hands over fists. Then she gets on the phone and sells them to local dealers OVER THE PHONE on the drive (or flight) back home! She makes a couple hundred bucks a car and she moves about 10 cars a week. Not too bad working a few days a week. She would tell you that initially the men will try and take advantage of you but once they know you will not put up with their BS, you are in. (but this is true for men as well!)
- I know another lady, Christine, in Houston who wholesales high line (BMWs, Mercedes, Porsches,...) cars and makes about $200,000+ a year! No kidding. She taught her husband the business and now he is slowing catching up to her!
- Another lady, Rebecca, from Utah recently purchased my study course and plans to utilize the "Ebay Model" with the help of her sister. She had recently bought a car off eBay and the wholesaler told her that he made $1500 off her Volvo wagon. She is a psychologist by trade so she knew how to get him to talk! (laugh) She KNOWS she can do this car business. Its NOT hard. I know she will do it!
- A stay at home mom, Patricia, in Maryland is learning to be an auto broker so she can stay at home with her child and still earn a darn good income.
"Most auto brokers make about $30,000 this first year, and $60,000 their second, and by your third year you hit the gravy train and make in the six figures ALL from referrals, innovative marketing, and simply because people would perfer to buy from women!" - A retired lady in Alabama, Melba, just got her dealers license and wants to buy and sell at her own leisure. She wants to be able to turn the business ON and OFF, like a faucet, whenever she wants. She loves the fact she can go to the auction, spend a few hours, buy a couple cars, and sit at home while she sells both of them in the next 30 days to pocket about $3000 in profit for the month. Not a bad retirement plan!
- Another lady, Millie< I know in Dallas uses her dealers license to live the lifestyle she loves. Her lifestyle is like this: She buys about 10 cars at the area auctions over the course of a few weeks, maybe less. She then places ads in the newspaper and waits to sell them all. Once she sells them (averaging about $1300 per car), she and her husband takes a month off and travels! Then she returns home and does it again. She loves it.Ladies, this business is for you! Especially if you would like to stay at home with kids and make a great living. Don't let fear hold you back. Get educated and start doing it. You have SO many things in your favor - trust me. You don't need to know a thing about cars right now - you CAN and WILL learn that.Let me teach you!Success!!George
Auto Broker Interview
Auto Broker Interview
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