In order to make this happen you need to get in good with a Sales Manager/F&I Manger or Higher. You only buy a vehilce that they TOOK someone one. Something they are WAY under wholesale. Or a vehicle on the lot for too long (IE 90 day mark at one of the delers here = bad for the lot, so they are willing to dump it).

Ok...so with the plot set here is the payout: you never make a car payment. When you buy a car, you can with the right lenders you can put your lst payment out 2 months...before you have to make that payment go in and trade in and get the next one. They make $2k, you get a new ride, they get a unit moved, you make no payments, win-win.

Check with your local/state regulations (ie State of Oregon only allows 6 transactions per year without a brokers license...but that is perfect 6 cars every 2 mos = no payments for a year)

Just so you know...I am 5 mos now with no payments: 05 Legacy, Turbo All Wheel Drive> 05 Mazda RX8> 01 BMW 330I> We'll see in 2 mos.

Oh yeah...I owe the same today as I did when I started and still at wholesale...so if I need to, I COULD sell it myself...but why....

 

Nice idea, but I don't see how you owe the same now as in the beginning. The car depreciates immediately after being driven off the lot. So you don get the same trade-in value when you bring it back after two months. You just end up owing more and more or getting a crappier and crappier car. Right?

 

What he's talkin about is buying the cars that are sitting around for a while -- dealer will give incentives to move a car. So you're buying under list. When you ride it off the lot it depreciates to about what ya paid for it. I can see how this would work -- you'd have to have a guy on the inside (sales/fleet manager) or you'd spend a crapload of time figuring out the next deal.

Here's how I do cars: I save up and buy them with cash. Then keep them til I save up enough to buy another one for cash. Ya get great deals that way plus no payments. The wifey's Expedition (last month) was financed to get additional cash but I've already paid it off. I've had the Jeep since '98 and plan to keep it -- heck, it only sees about 8K miles a year because I ride so much.

Keep working the system CJ

 

Sounds like a good idea, just takes abit of time to organise? Time i don`t have.

 

congrats to cj on taking advantage of dealers and their undesirable need to move cars. i personally wouldn't do it. im lazy and i really hate dealing with car salesmen. besides, im with chain on this one. cash is the only way to go.

 

i have a friend who has done something similar for years. he got an auto wholeaslers' license and obtains a car (for resale) from other dealers. he gets a note from an underwriter that has no specific required payments until the note becomes due, and then he just sells the car and gets another. he drives a car for a year or so and then sells it for a profit without ever making a payment.

 

hmmm, yeah i was trying to figure a way around the knowing someone on the inside aspect.

 

if you notice from the cars I have bought...they are USED....there is no drive off the lot depreciation...05 Legacy , 05 RX8, 01 330I

Chain is right....cars are depreciating assets...they go DOWN in value...in general you want to pay cash for depreciating assets

Appreciating assets you put NO money into (ie a home)...they will go up in value without the use of your finds

Car Knowledge...some lots get paid based on UNITS (and BIKE dealerships also!!!!)...if you go in the last day of the month, you potentially can get a better deal than the first...if the salesman needs just 1 MORE unit to get his $1500 dollar bonus, he will work his butt off for that unit....if the dealership needs just 1 more unit to get the GM/SM a huge fat major bonus, he will LOOSE money on 1 transaction to make more overall....

Some dealerships have a maximum number of days on lot (ie 90--Kendall)...a car that has been sitting on lot for a while can be bought for less..............ie Converatble (rainy/snowy states) in winter...so I will buy a convertable 2 mos before the sun...sell if for more when my 1st payment is due...

Chain is right...best way is just to pay cash....but I LIKE CHANGE..a new ride every 2 mos....COOL...and not having to pay for them...RIGHT ON....if you need proff I can scan car transaction statements....my BMW 330I retails for 27k...I bought it for 23k...I would have bought it for 20k but they needed to make $...I had 2 months worth of payments on the RX8 (1k), they gave me 1k less than I owed on it and they needed to make 1k on the BMW (3k total)....I owe exactly what I did before and am still sitting at wholesale for the vehicle...23k on RX (wholesale) -- Now 23k on BMW (wholesale)

2 weeks before my payment is due I will try to sell myself..hopefully make 2k...if not I will trade in on next car delership is in GOOD on.

This is no different then trading stocks..BUY LOW-SELL HIGH

If you need help getting IN with the guys you need to know...I can help, just PM me...