by occupant » Mon Mar 17, 2008 10:50 pm
I can see where low end cars could fit into the picture, it opens up all sorts of marketing opportunities (slasher events, $5/$50/$500 cars, etc), but the liabilites scare me. They would be cash only, you won't want to (and with most lenders wouldn't be able to) finance them, warranties are out of the question, and the people buying them are likely to think, big dealer, cheap car, lawsuit if it isn't perfect in every way. If your mechanics and inspectors are bored enough to give a $2000 car a full checkup and not kill your profits in recon costs, go for it. There are millions of good cars out there that are only worth a few hundred to a few thousand bucks, but they likely aren't the ones being traded in to your store on their last legs. Should you want to buy cheap cars seperately and resell them on your lot, buying from private owners and other dealers, you might have a better chance of getting good eggs.