by Owen Jones
In the first section of this short series on how to make money buying and selling used cars, we looked at which personal skills someone wanting to be successful in this business would have to have. In the second section we looked at the best sites to locate such a business; in the third we looked at acquiring our stock - our cars or trucks and in this section, we will look at valuing that stock.
Whether you obtain your cars or trucks from auctions or from private individuals, you will have to be able to work out their value accurately, so, how do you determine the value of used vehicles? The simplest way to know a vehicle's typical market, trade-in or wholesale value is to subscribe to a car dealers' used car guide. Most western countries have one, but in the USA the most used one is called the National Automobile Dealers' Used Car Guide or N.A.D.A.
NADA not only issues monthly guides to second-hand cars, it also publishes monthly guides on older or classic cars, smaller boats, larger boats, SUV's, mobile homes, RV's, snow mobiles and motorcycles. Look them up on the Internet and sign up to their subscription list for the kinds of vehicles that you are interested in.
These used vehicle guides normally include foreign or imported cars nd trucks as well and are a consensus of sales and auctions over the entire country, therefore a little local knowledge is indispensable too as your region may operate at slightly above or slightly below the national average, which could present you with additional chances for (wholesale) sales by transporting cars into or out of your district.
Sometimes or in some areas, a permit is necessary to run a used car business. This is nothing more than tax by another name usually, so simply requires you to pay a fee. In other regions, it may be a way of weeding out dishonest traders and may require an test of same kind, so it is worth checking your district's requirements before you start trading.
Some regions have looser laws than others on buying and selling used cars, allowing 'occasional sales'. 'Occasional sales of motor vehicles' is normally intended to be no more than five sales in a twelve month period.
When you are starting out you could make use of this allowance, if your district permits it, to keep your operating costs down to a minimum in the expensive early days of setting up your business, but as soon as you see yourself passing this maximum number you should apply for a license immediately to avoid incurring any penalties. These penalties can be harsh ranging from a fine to disbarment from trading, so be very careful.
You will also have to learn how to collect taxes from your sales and your wages to yourself and to your employees. You will also have to learn how to hand these monies over to the right authorities on time, although your accountant or book-keeper can assist you there.
Owen Jones, the writer of this article writes on many topics, but is at present concerned with <a href="http://new-hybrid-vehicles.com/Hybrid-Electric-Engines.html">Hybrid Electric Engines</a>. If you want to know more please go to our site at <a href="http://new-hybrid-vehicles.com">New Hybrid Vehicles</a>.
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New Unique Article!
Title: How To Make Money Buying And Selling Used Cars Part 4
Author: Owen Jones
Email: owen@amiabledragon.com
Keywords: business,cars,sales,autos,entrepreneur,career,home business,hobbies,vehicles,rv,management,finance,marketing,other,uncategorized
Word Count: 509
Category: Hobbies
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