what to offer investors?

Big Tom LaPointe
I have a friend who gets 1% per month on his loan to an independent. best of luck in your new venture ~ Tom LaPointe, CarChat24
Salete Marketing
Man thats a tuff one. Especially if you are going to carry 14k cars. Not sure there's enough to go around. Do you plan on having a service department for some steady revenue? How did you get to 45k Net? Cash IS king tho. Stay away from flooring if you can, curtailments will eat up your cash..
Ray Tomeh
Thank you Tom, I appreciate your feed back. it is a good start..
Ray Tomeh
Thanks Salete Marketing for your comment- here what i think, we all know that used car business is a business of discipline and profitability is a direct result of efficiencies that you build in your used vehicle operations. Having said that, effective merchandising, market-driven inventory acquisition, correct application of market-based metrics and sales transparency are our path to growth and profitability in this venture. Our goal is to sell 85+% of our inventory within 0-60 days. We have done it before and our front end gross profit was $2360. Our projected 45K net profit is based on $2400 (front & back end). These numbers are easily attainable in San Francisco Bay Area market
Salete Marketing
Great, Like the plan. Everything is always great on paper. I can say, be flexible. Be open to change and fast .. I had a similar plan that was thrown out pretty fast. Where do you plan to get cars " market-driven inventory acquisition " those cars are the hardest if you are buying at auction. Hard to compete with big boys, most times you cant buy well enough. at 14k , real tweener car, as you start getting lose to NEW @ 0% , sometimes those become only couple hundred bucks cheaper. You have cash, so line up some reources other than auction .. With a 60 day turn, you HAVE to be able to replace , also tuff
Ray Tomeh
Thanks for your honesty- You are right, everything looks great on paper and reality is tuff. No doubt! Our stocking strategy is extremely diversified and auction is a small part of it – Lucky if we were able to purchase 20% of our inventory from auctions. We are aware of this situation. We have a full time buyer/partner on board with a successful experience in auctions- You still can find your cars but it is really getting difficult every day- Uneducated buyers, lazy used car mangers, new comers, the desire to getting rich fast and working with other people’s money complicate things further- That’s why I said “used car business is a business of discipline and profitability is a direct result of efficiencies that you build in your used vehicle operations”. One more thing, you are right, the ability to change fast to market condition is also a key to a successful used car operation. It is a fun and challenging business - I have sold thousands of used cars since 1998 and had tons of fun do it. It is what it is- We hope for the best but we prepare for the worst. Best regards,

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