I have a reasonably successful career, but hope to retire (or transition out) within a few years and move onto something more automotive-related. I know the best way to make a small fortune in the automotive business is to start with a large one. However, does anyone have any ideas for someone with more passion than skill to start a small, part-time auto-related business and grow it into something reasonably lucrative?
Any and all thoughts will be welcomed!!!
Racerdog7
I have parted out old cars doing well. It is a part-time job that you work when you want to.
Fixing up cars and reselling in the $1500-$2000 range is decent too.
I have been looking for a part-time decent paying (high paying) job for 20 years. Good luck
does anyone have any ideas for someone with more passion than skill to start a small, part-time auto-related business and grow it into something reasonably lucrative?
If it were that easy, everybody would be doing it. If you have to ask, it's not going to work. It has to be something you have the skill, and passion for, so you would already know what it is.
Buy commercial property, triple net lease. Spend your earnings bumming at race tracks every other weekend. At least, that's my plan.
You use the term "Grow" and "Business"
That would put you out of the realm of the guy doing low-ball work in his garage where taxes and legit business overhead do not enter the picture.
If you want to open and grow a real bricks and mortar business, you need to realize that you will not be following your automotive passion. You will be dealing with the business part of the equation and paying others to do the actual work. This is one of the rudest lessons that new capitalist learn. The other rude lesson is that about 25 cents out of each dollar collected ends up in Uncle Sam's pocket. Not that either should keep you from starting a business, just that it is important to know before starting. If the two facts combine to sink a business plan, then a new business model needs to be developed that embraces the realities.
If you want to play with cars and get paid, consider a late career change and go work for someone who builds cars. Even at minimum wage you will be making more at the start than you would with your own shop. Plus you are learning stuff that you admit you need to learn.
pete240z wrote:
I have parted out old cars doing well. It is a part-time job that you work when you want to.
Fixing up cars and reselling in the $1500-$2000 range is decent too.
This has worked well for me. It has provided spending money for my IT car and vacations with the family.
Maybe learn how to do that paintless dent repair? Windshield chip repair. Auto detailing?
pete240z wrote:
- Fixing up cars and reselling in the $1500-$2000 range is decent too.
What types of cars fall in that range, for which people want to buy? What is the profit margin
vazbmw wrote:00 Neonspete240z wrote:
- Fixing up cars and reselling in the $1500-$2000 range is decent too.
What types of cars fall in that range, for which people want to buy? What is the profit margin
margin depends on how you buy them.
for reference last several cars I've sold:
1991 riv $700
1997 skylark $750
1995 altima $1200
00 neon $1200
If you have the patience, skills, and connections you can make money flipping cars. HOWEVER in most (all?) states selling more than X amount of cars a year requires a dealer license. Dealers license can be a large investment.
and then you have the paperwork pile to deal with which ruins the fun of it IMO
In reply to Racerdog7:
A friend of mine buys/flips classics, but not the high end stuff. Lots of British, Alfas, 240z's, 80's stuff, etc. Pretty them up cosmetically and then sell for more he paid without putting a fortune into them. Never carries a high inventory, sometimes only one car at a time. He seems to have an eye for it and above all, he never develops an emotional attachment about the cars. I've probably lost as much money over the years on my classic buy/flips as I've made, so you have to have a knack for it..
You can get into the aftermarket business with a relatively small investment with large profit margins. Send me a PM if you'd be interested in going this route, I'll be happy to show you exactly where to look.
Thanks for the info I have thought about this for years, but have not moved on it Have sold cars here and there, but not really seriously.
I don't the there are pretty tight limits for dealer vs being a private seller
very good info
internetautomart wrote:vazbmw wrote:00 Neonspete240z wrote:
- Fixing up cars and reselling in the $1500-$2000 range is decent too.
What types of cars fall in that range, for which people want to buy? What is the profit margin
93-97 Altimasmargin depends on how you buy them.
for reference last several cars I've sold:
1991 riv $700
1997 skylark $750
1995 altima $1200
00 neon $1200If you have the patience, skills, and connections you can make money flipping cars. HOWEVER in most (all?) states selling more than X amount of cars a year requires a dealer license. Dealers license can be a large investment.
and then you have the paperwork pile to deal with which ruins the fun of it IMO
Become a Mac tools dealer?
Buy a jiffy food store sell beer cigs ice porn mags , have a pot of cajun and regular boiled peanuts in crockpots and Oil and tranny fluid
the tool dealers are constantly bogged down in paperwork--they are constantly trying to collect dough too. and with fuel going up, there goes the incentive--those guys only make dough when they sell a 3000.00+ tool box, and they need at least 2 per month. do something because you love it --seem like the only guys making money are body shops--rain is money
This is a great thread. I am sure all of us at one point in time considered this very idea. I know I have and I am always researching potential "side" businesses. First off, I am currently a business owner and have been for nearly 7 years now, currently I work close to 50 hrs a week. I own a medium size supermarket in the metro detroit area. By no means do I consider myself an expert on independent business ownership. That being said I am currently working on establishing a side business. For me it is buying salvaged sport bikes, rebuilding them to a mechanically functional state, and selling them. My potential market are the racers and track crowd so cosmetics is not an issue. I chose that activity for several reasons. Hopefully this will give you some insight on my decision and also help you make yours. In my opinion it came down to what characteristics I considered most important. They are Passion, Capitol, Convenience, Prior knowledge, and Time management.
Passion is obvious, if youre only slightly interested in anything leave it alone.
Capitol, what can you afford to spend. Include all aspects; initial capitol, consumables, professional fees(shipping, auction, buyer/seller fees), and tooling.
Convenience, make whatever it is convenient enough to be able to pick up on a whim. You don't want to have to drive 30 minutes from home to get to where ever it is this thing is happening. For example I work in my garage. This is why most franchises did not fit into my goal. They required me to be in different parts of the state or more than an hour away from home.
Prior Knowledge, its much easier to pick up and run with something you have experience with. Don't waste your time trying to learn a brand new to you trade. It will prolong and delay any goals you have in mind. Unless this is your original intent.
Time management, this the decision maker for me. I need there to be no dead lines, no minimum required hours, no customers waiting, and no pre-established sales goals. I require extremely flexible timing and the freedom. Due to my already demanding career and for other events that pop up in life. For example my current bike project has been derailed for 3 weeks due to the birth of my first child.
I hope this helps. I apologize for being long winded with this reply. I am sure some will disagree and other will agree. Good luck to you and keep us updated.
