The Car Flip Show Episode 6: Should You Get a Dealer's License?

[@evilgenerator28]

20 minutes of must know info. Awesome video! Thank you

[@randygonzalez5758]

Great info, and thx for taking the time to post about ur experience. I read thru the comments and I’m amazed how many expect so much from you, catered to them personally without having paid u a dime. There are many nuggets here. It’s up to you (viewers) to figure out what applies to you, what doesn’t, and what’s best for you.

[@reythegreattt9576]

I'm going to start one with no more than $5,000. Watch me! When I do it I'll post a video.

[@potlowpotlow2401]

I definitely agree. I was like, man.. what i ge talking about. You can easily start one with less than 5 grand.

[@mytube92369]

Awesome video! Thank you brother for being so transparent.

[@RoadtoHighScorescom]

Yes you really don't need a lot of money but you do have to have Good credit to open a dealership. I just opened my lot here in Texas and it was pretty affordable. I even got a floor plan.

[@nicklovesdata9546]

A lot of jewels in this video!!! I subscribed,liked, and am joining the Facebook group. Thank you.

[@raymondrigdon4019]

I find this slightly misleading. This is good advice if you plan on starting a full-blown multi car dealership. However, you can easily find a properly zoned office with two spots for cheap (less than 500 a month with all amenities such as utilities, wi-fi, printer, even a break room included in the rent) and having a dealer's license allows you to buy from dealer auctions. This is the best place to get your vehicles as you will be paying under bluebook if you know what they are worth when you go. You could easily start off by going once a week purchasing 5 cars and let's say according to him you make a measly $1,000 off every car so that's 5 grang profit with only 500 overhead and let's say you put new brake pads and oil in every car and are super generous with your detailing budget and take another 1000 for that, its still 3500 profit for very little work or time as you only need to be at the office when someone contacts you for a purchase and only go to the auction when you need product, and if you're already at that point where you're getting more during the month then you already know it's well worth the time. And a lot of the stuff he is saying you can do yourself you don't need to pay for a on-site mechanic. That is a huge unnecessary luxury and hes paying that luxury. Unless of course he owns that mechanics business also then hes earning his keep. Either way the numbers he's describing would be for 2 businesses, not 1. And in my honest opinion sound inflated. Think about it, why would he give you advice in the industry he's already doing good in? he doesn't want any competition. and what better way to stop the competition than before it even starts.

[@TheCarFlip]

I understand where you're coming from Raymond, but I was only telling you what my expenses are. It could definately be done cheaper in an area where land was less expensive. Unfortunately where I'm at that's not the case. A full time mechanic is definately a luxury, but it's one that's worth it for me. I do outside repair work with my mechanic, so that definately offsets that expense. I'm glad you found the channel and took the time to comment. I appreciate the feedback! Spend a little time going through my stuff and you'll see I definately am not discouraging people from getting into the car business. I'm trying to make it as easy as possible for someone to get started. So much so that I get a lot of grief from other dealers for giving away too much info.

[@raymondrigdon4019]

The Car Flip with Justin Carper after checking out a few more videos, I would agree that was not your intention. However, I myself am in the early stages of planning and opening my own small business in southern california (where property prices are as high as it gets other than New York) and with that being said, you can easily find DMV and County approved locations in Southern California ( Inland Empire) for around 350 to 500 a month with everything covered ( utilities, Wi-Fi, even receptionist and Security Services included). realistically speaking, the most expensive start up cost is the surety bond because that's dependent on personal credit. However, other than that, it's just a bunch of hoops to jump through with 50-100$ application fees and that can be rounded to roughly 1500$ on the high end. So let's say you have bad credit in your surety bond is 5000, that is only a 6500$ start up cost. Granted though, wou would need some money left over for inventory but with such low month to month overhead, most people could probually get away with 4000$ for inventory for the first month or so as you would want to get cheaper compacts for quick flips so there is cash flow and 4000$ would be adequate I'm my personal opinion. But I just simply wanted people to know that although a good idea, you absolutely do not need a small fortune to get started.the numbers I came up with were around 10,000 and that is a worst case scenario in a expensive part of the us. But I would like to say after watching a few more videos, I'm a subscriber and appreciate the information. I just stumbled across that particular video first and will give a disclaimer to everyone that you give good advise but do your own research for your particular area as there are loopholes that allow you to start up for cheap.

[@TheCarFlip]

Not every area will have the set up you're describing. I'm not aware of anything like that around me.

[@brandoethrige8934]

Ya raymond I'm familiar with the group share co op type leases and can tell you that most cities do not have these. You are right though I would definitely go with that option for the first yr or so. This way you can build that small fortune and move up the latter on your own time. I enjoyed reading your input here as you seem to have done your research. I'm attempting to start a dealer here in North Idaho(fasted growing state in the union). Unfortunately/fortunately half of california seems to almost desperately want move here. This will make for a great market for me but real estate and rental prices has shot up 40% in the last 2 years which means finding a location wont be easy.

[@brandoethrige8934]

The Car Flip with Justin Carper I'm curious to know what your expenses are(ballpark). I realize this is an invasive question, but it would help me set a goal or standard as in the coming months I will be starting my dealer and would like a facility comparable to yours. I have about 70k to start. So far I have averaged 1500-3500 per flip from my home.

[@SawmillerSmith]

Here in West Virginia and if you are a dealer you have to be open 40 hours a week. ..Who would want to work that many houses at a car lot? Not me!

[@arsalan500]

Thankyou so much Justin!!

[@TheCarFlip]

No problem man. If you have a follow up question to anything, just let me know. :)

[@TeslaRoadsterSpud]

First video I have seen of yours. Subbed and Liked. I'm considering flipping a few cars a year as a side project. Hope to learn the do's and don'ts. Thanks for the real numbers you shared.

[@TheVaka1]

Excellent video. Thank you

[@Smartriide]

Everything in this video is true, great advice.

[@TheCarFlip]

Thanks for watching!

[@ptlpszt1]

Very good content. Thanks

[@antrod8014]

Not much profit with overhead of $5,500 per month and sales profit of $8,000. That $2,500 barely pays rent in N.Y. never mind other bills.

[@mikehileman7672]

What are your thoughts on buying rebuildables? I will not buy frame damage/ flood cars. What are the drawbacks besides disclosure? We run a custom audio shop so I was thinking upgrades also

[@Kentuckyvlogs]

this is great content. thanks

[@TheCarFlip]

Hope it helped!

[@sierratransmodal8631]

Good info

[@TheCarFlip]

Thanks for watching!

[@brettthomsonthomson9001]

What good video good see how you do it in USA I am in the UK keep them coming

[@OldManFrank]

I'm making big changes in my life soon but, once everything settles I'd really like to flip cars on the side. I'll subscribe and hopefully with your help I can make it happen.

[@TheCarFlip]

Glad you found the channel man. Good luck getting started!

[@maxrccw]

Your the man !

[@TheCarFlip]

Thanks for the kind words!

[@jen3349]

You don't need a lot of money to start a dealership.

[@larryjackson2779]

Jennifer Fish. Can you give me a estimate

[@megaman4201]

Those are numbers you have to come up with yourself. There are far too many variables. If you're 25 and working full-time while living with your parents you could probably start a part-time used car business w $2-3,000. But if you are in your 40s and married to a stay at home mom of three children and planning on quitting your job to start a dealership full time then like he said you better have 75 grand minimum to live off of while establishing your business. And even that may not be enough depending on your area and circumstances. So numbers are relative to circumstances and needs.

[@Cutiepie50021]

What about wholesale? No one teaches on wholesale 😞

[@ajnisbeth]

Hi Justin, is general liabilty insurance coverage required for a car dealer? What's a good company to use? Average cost for the year?

[@mph5896]

Thats a big $ number just to keep the lights on and make enough to live on.

[@TheCarFlip]

It for sure is! That's why you don't want to make the jump too soon. Some people want to get their dealer's license right away. I think it's much smarter to start small from your driveway and grow from there.

[@nievelindadiaz1513]

im interested in getting a dealer license but dont have a location in CT. How do i get a dealer license?

[@adriancarter2464]

To make a $2000 profit what is your expense on a car at an auction typically!

[@TheCarFlip]

Adrian Carter It depends. I buy all different price points. It can be done on as little as $1000 though.

[@bavarybeaso9441]

Hi, I would like to get in the cars business and eventually open a dealership. I have questions and I would like to know if we could schedule a phone call. Thanks, Ahmad

[@casesmobilesunblock]

what type of insurance is needed to cover the cars that are on the lot? and what is a good company to use for that policy?

[@TheCarFlip]

Garage liability is the type of insurance that covers my cars. I use Erie Insurance, but there's a lot of other companies that offer it.

[@casesmobilesunblock]

thank you!

[@Aprilcamps]

Thanks for the information. Do you plan to finance the cars for your customers (buy here pay here)

[@TheCarFlip]

I don't do buy here pay here, but I do deal with a couple outside lenders. This allows me to offer financing without having to deal with the headache of collecting payments.

[@Aprilcamps]

That makes sense, thanks for the information you provide.

[@jonathan1613]

Hello, I'm from Texas and am considering starting a small used car business how much would you recommend me spend o my first buy? How many cars do you think would be reasonable to buy?

[@josecl7]

I am not a dealer and I wanna flip my first car. Once I buy the first car I intend to flip do I have to get it registered at the DMV? And if yes doesn’t that ear out of my profit?

[@bricecubbage5984]

How did you have 50k in your bank account saving ? Or a loan

[@TheCarFlip]

It was a combination of savings, cash we had just made from the sale of a house, and a loan.

[@bricecubbage5984]

wow good stuff

[@mashudur]

D o I need to have C3 zoning commercial lot?

[@TheCarFlip]

That would be a question for your city's zoning department. My location was required to be zoned commercial though.

[@bricecubbage5984]

wait justin I'm super confused you do financing but you dont do buy here pay here. when you say buy here pay here you mean your dealership is responsible to get it towed and if you dont do that or finiacing your telling me ppl buy the car straight out from. you the whole amount ?

[@TheCarFlip]

90% of my buyers pay cash. I do not finance anything myself, but I do deal with a couple lenders where I can take a credit application from a customer and send it to the bank for approval. The last thing I want to be doing with my time is chasing down people for their payments! :)

[@bricecubbage5984]

why do 90% of them pay cash ?? what are your price ranges?

[@TheCarFlip]

I sell anywhere from $2500 to $15000, but most of my mine go for around 5000-6000. When I say cash, that means actual cash or a check from their bank.

[@ProfessionalTaxessssS]

do you have info on a surety bond company?

[@TheCarFlip]

I use RLI Surity. There are many companies that offer bonds, but I've had good service out of RLI.

[@SPINEVENTZ]

30k to start ??? wow I don't think so!

[@TheCarFlip]

Do you think it should be more or less?

[@jaandel1]

Talk too much...