ON BUYING CARS ONLINE
Patience and timing.
I'll set alerts for cars and SUV's on Craigslist between Bellingham, WA,
Ashland, OR and Boise, ID. It might take a couple of months to find the right
car and seller, most have inflated opinions of their car's value. Then I go to
eBay completed listings to get a feel for auction selling prices for comperable
cars, email the link to the seller and see if we can start talking compromise
(I've already researched the VIN and Alldata).
After purchase the car is fully reconditioned. The greatest payback is a thorough interior/exterior detail. I used to do it but now use an excellent local detail shop and my back feels much better for that. Another plus that buyers value is new tires with optional road hazard replacement warranty, an alignment from a local shop I frequent, a new battery, fresh fluids, belts, hoses and maybe brake pads. Typical reconditioning cost is under $750. I don't do major restoration, just cosmetic and deferred maintenance. The cars I target are usually garaged and paintwork is above average.
I pay cash for cars. It could take two months to find a qualified buyer, but the Craigslist ads I post between Canada, Mexico and the Rocky Mountain states are free so that's where patience comes in again. Given my buying price, I'm almost always able to price a little below the Craigslist competition, such as it is. Not all that much competition given my focus on high end special interest cars I've owned and am comfortable with fixing within reason. If I can't buy at least 20% below low book including reconditioning, I'll pass.
I've had the best net profit with Lexus cars and SUV's. When premium gas is above $4.25/gal. or so and a new model year debuts lowering the resale price of everything prior along with lease returns depressing prices coupled with year end new car incentives as manufacturers scramble for sales and registration leadership it's a good time to buy SUV's. I'm currently looking for a 3-4 year old LX, GX or 4Runner that should check all the right boxes.
The nice thing about doing this is having the ability to change inventory to match seasonal demand, so early next year I'll be looking for interesting Porsche 911's and Mercedes AMG's. Those depreciate more that almost any other car out there and when a clean car with a good history surfaces, patience isn't a virtue since they sell surprisingly quickly, usually to a local Intel or Nike employee.
After purchase the car is fully reconditioned. The greatest payback is a thorough interior/exterior detail. I used to do it but now use an excellent local detail shop and my back feels much better for that. Another plus that buyers value is new tires with optional road hazard replacement warranty, an alignment from a local shop I frequent, a new battery, fresh fluids, belts, hoses and maybe brake pads. Typical reconditioning cost is under $750. I don't do major restoration, just cosmetic and deferred maintenance. The cars I target are usually garaged and paintwork is above average.
I pay cash for cars. It could take two months to find a qualified buyer, but the Craigslist ads I post between Canada, Mexico and the Rocky Mountain states are free so that's where patience comes in again. Given my buying price, I'm almost always able to price a little below the Craigslist competition, such as it is. Not all that much competition given my focus on high end special interest cars I've owned and am comfortable with fixing within reason. If I can't buy at least 20% below low book including reconditioning, I'll pass.
I've had the best net profit with Lexus cars and SUV's. When premium gas is above $4.25/gal. or so and a new model year debuts lowering the resale price of everything prior along with lease returns depressing prices coupled with year end new car incentives as manufacturers scramble for sales and registration leadership it's a good time to buy SUV's. I'm currently looking for a 3-4 year old LX, GX or 4Runner that should check all the right boxes.
The nice thing about doing this is having the ability to change inventory to match seasonal demand, so early next year I'll be looking for interesting Porsche 911's and Mercedes AMG's. Those depreciate more that almost any other car out there and when a clean car with a good history surfaces, patience isn't a virtue since they sell surprisingly quickly, usually to a local Intel or Nike employee.
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