…. I have investigated the fatality of a co-worker and worked 47.5 hours in four days, which excludes the 6 hours I have spent in the car getting to and from work with the roadwork’s in my city ……… however all that is manageable compared to the stress that has come from waiting for payment for the first car that I have sold for a “profit”…... the 2002 BMW E46 318i Exec. When your own money is hanging in the balance and you’re not sure if the car dealership is going to go bust in these economic times ……and you will never get your money back….. it’s a little stressful…….So anyway……. all the worrying was for nothing, I got payment this morning, R6500 less than I wanted, but I still did make a profit ………. R2500 ……… yes it took me 5 months ....... so I really made R500 a month (which actually was reduced to zero by the insurance and tracking I had to pay on the vehicle in those months)…….. so I really only got out what I would have achieved as a “trade in” on another car BUT…… I now have the money cash and can buy privately and on auction without paying the HUGE premiums charged by dealers………… at this rate I’m not going to be a millionaire in the next few years … BUT I have learned a LOT that I will now share with you ……… it was WELL worth selling the BMW 318i through a dealer as the guy who bought it picked up a problem with the radiator only a day after he bought it.
If he had bought directly from me I would have had to sort this out. The dealer has a policy where they do a full mechanical check on every car they sell and add a guarantee……. There were several people interested in the car in the three months I had it at the dealership (as apposed to the zero people interested through the private selling on AA Autobay…. See my article on AA Autobay), but even though the potential buyers earned a bigger salary than myself they had bad credit history and the banks ran from them like a rabbit from a hungry fox……….
So what are the tricks for a quick turnaround so you too can make money:
There was too little money to play with for the guys that wanted to get out of their current financed cars…… they owed too much on their current vehicles vs. the trade in they would get and the bank won’t finance a value on the “new” car that is higher than the recorded book retail value, so the dealer could not “load” the “new” car price …… with older cars and cheaper cars the margin is very tight as the percentage on a lower amount does not amount to many thousands……. i.e. the dealer sometimes “loads” the new car to help the guy carry over his finance to make his cash flow and / or trade in work……… without him having to put in any capital.
The above is now possible with the 325i I have bought………. It has an infinite number of extra’s, I bought it for a very reduced price compared with retail price (slightly more than the dealers would have paid for it themselves, but still a good deal). Therefore I can mark it way lower than the book retail value…… to give guys the opportunity to do the above and for me to still be competitively priced.
I don’t suspect I will make a killing on it but I am sure I will make more money than I did on the 318i and I will do it in only a month.
I walked into my local BMW dealership and asked if they would take my car on consignment. They said they had too much stock at the time. When I asked, they didn’t indicate that they were not moving stock……… BUT they have a LOT of cars and which salesman admits to you that he is bleeding….. every shark in the city will smell the blood and come and rip him apart. He wants to sell a VERY similar car for R235k and said he would go as low as R215k when you can get one for R190k OR maybe R195k with low miles and fully loaded like the one I have.
See Part 2 in a couple of days....
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