School me on opening a small specialty used car lot.

[onemeangixxer7502]

Damn!

not everyone curbs them....

The trick for tote the note type places is that your down payment should equal your wholesale cost for the car.. That way you are whole if they put a DP and never make a payment. Every payment is your margin. If you have a good repo guy and can flip repos quickly (from delinquency to resale) you will always keep a good cash flow.
I would never do that though, cause you're usually dealing with the worst segment of society.

while 100k is on the high side yes the thing is to get your DP to be atleast 70% of your auction cars values. Your a/r with tote the note can get crazy, then when they miss a payment have your good repoman as mentioned and just start all over or have a nice fee to get their car back..

[slownbmta]

The trick for tote the note type places is that your down payment should equal your wholesale cost for the car.. That way you are whole if they put a DP and never make a payment. Every payment is your margin. If you have a good repo guy and can flip repos quickly (from delinquency to resale) you will always keep a good cash flow.

I would never do that though, cause you're usually dealing with the worst segment of society.

That only works if you are buying shit cars. People with bad/no credit ALWAYS only have $800-$1200ish to put down. If they had a lot of $ they probably wouldn't have bad credit. But that doesn't mean they are going to settle on a $1000 hooptie just because they have bad credit. They usually won't. A tote the note lot would be rediculous expensive to start now days. If you are buying $1000-$2000 cars they most likely won't make it very long and won't sell that well. Cars in that range are usually POS's. I would scratch tote the note off the low budget options. I would say it would take $200000-400000 to sucessfully get a note lot going strong depending on what you consider "strong"

[War Machine]

That only works if you are buying shit cars. People with bad/no credit ALWAYS only have $800-$1200ish to put down. If they had a lot of $ they probably wouldn't have bad credit. But that doesn't mean they are going to settle on a $1000 hooptie just because they have bad credit. They usually won't. A tote the note lot would be rediculous expensive to start now days. If you are buying $1000-$2000 cars they most likely won't make it very long and won't sell that well. Cars in that range are usually POS's. I would scratch tote the note off the low budget options. I would say it would take $200000-400000 to sucessfully get a note lot going strong depending on what you consider "strong"

A+ post

[8mpg]

Id never do tote the note. Just buy and sell a car. Texas trucks in norther states can pull some money though there are now lots of people doing it. I bought my old Megacab from a guy in Houston that ran a car dealership out of a flower shop. He only sold diesels and most of his buyers were from out of state.

[Chopped54]

Id never do tote the note. Just buy and sell a car.

The big timers in the car game that I know are tote the note guys.
One guy has over 125 out on paper and starts at min $100 a week, some quite a bit more.

GPS is a necessity on tote the notes but pays for itself.



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[War Machine]

Id never do tote the note. Just buy and sell a car. Texas trucks in norther states can pull some money though there are now lots of people doing it. I bought my old Megacab from a guy in Houston that ran a car dealership out of a flower shop. He only sold diesels and most of his buyers were from out of state.

thats my hustle

The big timers in the car game that I know are tote the note guys.
One guy has over 125 out on paper and starts at min $100 a week, some quite a bit more.

GPS is a necessity on tote the notes but pays for itself.



Sent from my iPhone using Tapatalk

thats my dad's hustle

[slownbmta]

The big timers in the car game that I know are tote the note guys.
One guy has over 125 out on paper and starts at min $100 a week, some quite a bit more.

GPS is a necessity on tote the notes but pays for itself.



Sent from my iPhone using Tapatalk

We have 400-450 notes and payments are 80-125/week. But been in business forever. My grandparents started it like 25 years ago lol. But starting from scratch would be scary now days