The Lazy Way To Buy And Sell Cars

Small used car prices are rising due to the $4.00 per gallon gas prices. A reader of The Lazy Way To Buy And Sell Cars For Profit emailed me recently to tell me that he noticed a rise in small used car prices too. I wasn’t sure about that at the time he contacted me but I just read a couple articles confirming that.

One example of this is a used car dealer in Detroit I read about that is selling small fuel efficient cars for more than his asking price…and he sells these little cars fast too! He buys his used cars at wholesale dealer auctions, but the flip side is that the demand for these cars has caused a spike in prices on the wholesale level too.

According to the NADA (National Auto Dealers Association), the price of the average small used car has risen 2% in the last year with super small car prices going up 7.3%. Yet after doing a little research, I’m reading about little cars at wholesale car dealer auctions selling for $7000.00 that used to sell for only $5000.00.

J.D. Power and Associates says that the biggest increase is with the super small cars like Toyota’s Yaris and Chevy’s Aveo.

Okay, so NADA says small used car prices are rising only 2% to 7.3%? Hmmm, math has never been my strong point, but according to my calculations, a $5000.00 to $7000.00 bump equates to a 40% increase in prices! Whoa, for something that typically drops in price, that is some frickin serious appreciation man!

I remember a gas crunch in the late seventies where there was a big spike in the resale value of small fuel efficient cars. I wasn’t into buying and selling cars for profit then, but right before that gas crunch, I bought this rude little 2 cylinder (or was it 3 cylinder?) Honda 600 car that had a stick shift poking out of the dashboard. Anyway, I don’t remember now how much I made on that car, but I sold it for a big profit when everyone was freaking out about the high gas prices.

So that’s the dealio everyone. Small used car prices are rising and that means that if you can pick up a used little car CHEAP, which is the ONLY way I want you to buy according to The Lazy Way To Buy And Sell Cars For Profit, then you can rake in some serious cash right now.

I would love to know if you have noticed if small used car prices are rising in your area, so please feel free to post your comments in the box below. 

Used car prices this week are up 5 to 15% since January 1. People who bought used cars last August can usually resell them, provided the tires are good, for 10 to 30% more than they originally paid, and they will have had six months driving free.

In almost every deal rubber is the No. 1 price factor. Used cars with extra good shoes bring $50 to $100 extra; cars with bad shoes are not wanted at all. Quipped a Detroit Ford dealer: “You would think this salesroom was a mosque to see all those guys down on their hands and knees looking at tires.”

In San Antonio, 1939 model Chevrolets are fetching $595, against $495 a year ago; 1941 models are worth their original prices. In Detroit any good 1940 model sells for only $100 less than it cost new; 1941 jobs show no depreciation.

In Baltimore an auctioneer last week put an almost new 1941 model on the block, without a word caressed its big, wonderfully thick tires. It brought $1,600-$100 over the new-car price. Older models formerly selling for 50-$100 are now stripped of their tires (and sometimes upholstery), sold as junk.

One reason used-car prices are up is that only 145,000 new cars will be rationed through May v. 1,450,000 sold in the same months last year. A bigger reason is that dealers smell sweet profits. With trade-ins down, along with new-car sales, they are satisfied not to sell unless they get their pound of coin. Consequently used-car sales volume has flopped.

In Atlanta a big Chrysler-Plymouth dealer sold only 20 used cars in February, 70% below normal; the First National Bank reported used car financing off 80%. In Texas, February sales were down 50%. Chicago’s 265 big dealers have sold so few cars since Christmas that stocks last month hit 10,481 an alltime record.

This article is care of Time Magazine…printed 3-16-1942. Yes, you read that right…1942.

What are the most expensive cars to repair? In case you’re buying and selling expensive high-end cars for profit (or are planning on owning a high-end car) here’s a heads-up on what the most expensive cars to repair are.

And just so you know, the following repair costs are based on the first five years of ownership.

The top five most expensive cars to repair are…

1) Dodge Viper at $1641.00.
2) Audi A8 & Mercedes-Benz G Class are both tied at $1640.00.
3) Jaguar XK at $1629.00.
4) Land Rover Range Rover at $1600.00.
5) Mercedes-Benz CL Class at $1540.00.

The most expensive non-luxury cars to repair are…

1) Hummer H2 at 1484.00.
2) Hummer H3 at 1244.00.
3) Ford Mustang at $1201.00.
4) Mini Cooper Convertible at $1093.00.
5) Subaru Impreza at $1006.00.
6) GMC Yukon & Chrysler Pacifica at $970.00 each.

The most expensive trucks to repair are…

1) Ford F450 at $1295.00.
2) Dodge Ram 3500 at $1282.00.
3) Chevy Silverado 3500 at $1094.00.

Actually, thats not too bad for a period of five years, but dang, thats for a NEW car! So what happens when that factory warranty ends and you start wracking up some serious miles? Those are the figures I’d reeeeally like to see!

Luxury cars and high performance cars cost more to repair because labor and parts cost more. Why do they cost more?

Cuz they can get it!

For example: a “normal” car might cost only $70.00 per hour (gag!) to repair but the labor per hour for a high-end car might be $100.00.

That is a very incomplete list because who knows how much exotics like Lamborghini’s and Ferrari’s would cost to repair? YIKES!

For the sake of peons (like me) that are buying and selling cars for profit, just know that the more complicated a car is then the higher the repair costs will be.

i.e. Complicated car = Major ream job!

So be aware of what the most expensive cars to repair are the next time you’re salivating over that Mercedes or whatevah.

A Tip…

Find a GREAT backyard mechanic that really knows his stuff and LOVES to work on cars and will do your repair work for a lot less than anyone else will…and always be nice to that person.

Until next time…

Steve

Gas guzzlers aren’t very popular right now. Poor little gas guzzlers.

I’m reading stories about car dealers not accepting gas guzzlers as trade-ins anymore. Sales for gas guzzler cars are low now due to high gas prices and car dealers are finding themselves being stuck with them.

Yup, what was once one of the most profitable niches for car manufacturers is being unloaded for hundreds and hundreds less than what they are supposed to be worth.

But what something is supposed to be worth means nothing until you try to sell it out in the real world.

Hmmm, that got me to thinking if the little guy can still make a profit buying and selling cars or trucks that are considered to be gas guzzlers?

Despite the fact that gas is pushing $4.00 per gallon, I still know that even gas guzzlers will sell…

If the price is low enough!

And coincidentilly (I don’t believe in coincidences), one of my readers of The Lazy Way To Buy And Sell Cars For Profit called last week to tell me about a profitable car deal he just concluded that corroborates that too…

I didn’t take notes during the phone call but I’m pretty sure I recall the details correctly here. Anyway, he told me that he just bought a 1985 Ford F150 for $500.00 (which I believe was about half of what the guy was asking for it).

The truck ran well and looked pretty decent but the paint along the top of it was faded and it needed a new rear window.

He spent about $300.00 by having the top of the truck repainted and getting a new rear window. I could be wrong but I’m pretty sure he said he bought a new battery too.

He put the truck up for sale for $2600.00 and sold it to the first guy that looked at it for $2100.00. He told me that he knew he could have gotten his asking price of $2600.00 but figured “what the heck” and was happy with a quick profit of $1300.00.

So yes, gas guzzler V8’s still sell, but you have to buy them super cheap…and you need to sell them at a discount.

Okay so buying super cheap is pretty much the crux of what I teach in The Lazy Way To Buy And Sell Cars For Profit, so nothing unusual there, but the other thing is that basic pickup trucks will always have inherent value because of their utilitarian use.

So can you make a profit selling gas guzzlers? Sure, this guy just did.

I woke up this morning thinking that today was Thursday. Dang, where the hell did Thursday go?! Have a great weekend everyone!

Steve

P.S. Please feel free to leave your comments!