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      12-17-2012, 02:39 PM   #1
gnhm3
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Anyone with experience or opinions on the retail or wholesale car dealer business?

Looking to get my license to start hitting the Manheim auctions. After attending the class I started second guessing it. All the fees, taxes, and the surety bond you need to acquire. Is it all worth it to start flipping cars?

In your opinion whats more profitable retail or wholesale? I know you need to network when you are a wholesaler but also heard that retail can be a pain in the ass.

I really would appreciate anyones advice who has experience in the industry. This is something I am trying to decide soon if I want to pursue. Thanks in advance.
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      12-17-2012, 05:33 PM   #2
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Correct in both cases.

Retail = more profit per sale, plus typically more time per sale.

Wholesale = less profit per sale, plus typically less time per sale.

Hight retail profit requires less volume.

Lower wholesale profit requirers more volume.

It's the same in most business for that matter. In mine, $600k worth of retail business is equal to about $1m of commercial business. The big bonus of retail is when there is an upswing in the market. An increase of $200k in retail means an additional $90k in gross profit. The same increase of $200k in commercial means an additional $40k in gross profit.
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      12-17-2012, 09:17 PM   #3
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^^ Thanks. Any other input?
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      12-18-2012, 08:29 PM   #4
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Anyone?
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