fdjake.... import/export of cars

Random Ramblings
1

fdjake… always glad to read some of your posts and get a more optimistic view of making $$$

You know the car business very well and your recent post explained how the USA will be catering to the demands of the growing world…

I have good contacts with access to car auctions exclusive for dealers. From what I’m told, the big buyers at these auctions are the guys exporting vehicles overseas…

I have a family friend who has a contact in Jordan that’s interested in importing cars. They are both already successful businessmen, and I’m only in the picture b/c I have access to the auction to purchase cars in bulk at ‘wholesale’ prices.

I’m putting together a spreadsheet of cars that we know will sell well in Jordan. We still have to figure out the markup per car, shipping, customs, etc. The markup price is almost double over there, and hybrids are in huge demand b/c of the the tax break the gov’nt is giving for them.

What are your thoughts on import/export of cars, have you been involved in it?

2

I can only speak of my experience in the Northeast…

Up here it has become almost impossible to buy Hondas, Toyotas, Nissans, or other Japanese cars at dealer only auctons because of foreign buyers exporting these cars…Most get sent to the Dominican Republic, Guatamala, ect. Because the markup is so high they just bid whatever they have to inorder to BUY the cars…My guess is the cars you’ll be buying for Jordanians won’t be Japanese.

The easiest and safetest way for YOU to do this is to just add a BUYERS fee to each car you get them…You can get your money upon delivery to the dock, or even better right at the auction when you hand over the paper work…If you REALLY trust and know you can count on your foreign friends for payment at the user end… you can make more…But that involves much longer delays and headaches.

I SOLD cars to exporters here…I would run ads in local newspapers looking for high mileage Hondas & Toyotas. I ran all my ads in upper middle class to higher income areas…These people would have Honda’s or Toyota’s with 150K miles on them that needed tires and they thougth they were worthless. I’d negotiate a price over the phone (I would tell them I wouldn’t even come out to look at it unless I knew what they wanted for the car) If they wanted too much for the car, I would plant this seed…

“Well, you can TRY and get more for the car, but that’s gonna mean putting and ad in the paper or the internet and having STRANGERS call you and you giving these STRANGERS directions to your HOME…And God help you if they have a PROBLEM with that car later on…Remember…YOU CALLED ME AT HOME…I’ll meet you where ever you want…Even the local police station…I know these cars, if it’s what you say it is…This will be a 10 minute transaction…Bring the title…I’ll bring the CASH.”

That usually did it. Funny how Joe CEO didn’t like the idea of some dirt bag knocking on his front door at 9pm!!!

Then I’d call my Dominican friends and sell the car over the phone…

I use this EXACT same method to buy HOUSES…

Here’s what I tell people about REAL ESTATE INVESTING…

“It’s the USED CAR BUSINESS…With an extra Z E R O at the end of the prices!”

It is LITERALLY the same business…It would BLOW MY MIND how much money I could make just CLEANING a car…Not doing ANYTHING else…and “I” wouldn’t even clean it…I’d take it to a full service car wash, pay them $18, the car would go in looking like a $3000 car and come OUT the other end as a $5000 car…

I just did a CLEAN OUT on a home last month and made $30,000 by paying someone $1000 to clean the CRAP out of this house…Once it was cleaned out, it looked GOOD…PERFECT for a quick trip to the MLS…I owned the house for 8 DAYS!!!

Hey…NEW GUYS…Want to REALLY LEARN the real estate business inside and out???

Become a USED CAR DEALER first and learn it ALL…From marketing, to negotiating, to closing the sale, to fixing 'em, to finding 'em…

It’s THE BEST Real Estate BOOT CAMP on the PLANET!!!

3

Well I just got my friend’s login for Manheim’s auction and compiled a list of recent sales on Lexus and Toyota hybrids. I added a $3k markup to each price and will send it over to the guy in Jordan. These cars sell for double over there and the gov’t is providing tax and fee exemptions on hybrids. It’s still just conversation at this point, but I hope it leads to something b/c I need to get RICH already!!

My friend’s been bugging me to lend him money to do what you mentioned… negotiate prices down from private owners and rather than sell to exporters, he wants to run them through the auctions. I haven’t gotten involved yet because I don’t think it’s worthwhile. I got away from real estate this year, but I really need to get back into it!!