VehicleTip

Question by QuestionAsker0013: Car Dealers?
I was wondering, if I became a car dealer, how do I get money to pay for the cars at an auction to try and sell? In other words, when a car dealer purchases the car they want to sell, where does the money for that car come from? Do they pay for it out of their pockets, or take out loans? Another thing, how good does your credit have to be in order to become a car dealer?

Best answer:

Answer by Daryl C
I tell you coming from a family of car dealers. Most car dealers have about a $ 200,000.00 line of credit at the least that they have to work from. The main reason is being the can’t have leins on the cars that they are trying to sell it would make things too difficult. So all in all you would have to have excellent credit to start a good car lot. If you wanted to buy 2 or 300 dollar cars fix them and sell them on buy here pay here terms well you could do that with little effort if you have the mechanic ability to repair them yourself. That is what I do in my spare time and I make a pretty good profit from it. Not enough to do it full time, but I have never tried either. Go for it, if you have the will there is a way.

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