Basic Plan for Buying and Selling Muscle Cars

The other day I got an e-mail from a man in Houston saying he was interested in doing a Muscle Car Dealership and wanted to know what I was looking to do to get one started and maybe there would be an opportunity for me to be part of his plan. ( sorry about the long sentence )

There is no big secret here and I will share my plan with anyone who is interested.  It is not rocket science.  Every Muscle Car has a basic value associated with it.  The value depends on the quality of the vehicle, it’s condition, it’s rarity, the options, the color, and of course the rabidness of it’s fans.  There are other things as well, but basically that’s the way prices are determined.  Every area of the country or the world for that matter also plays into the equation as well.  Currently because of the economy the Middle East seems to be buying up a lot of these cars.  Every car that leaves the country means the ones left here become more valuable because they become rarer.

You want to find cars that are priced below value so that you have a greater opportunity to sell it for a profit.  Very simple concept.  Buy low; sell high.  The challenge lies in being able to find the cars.  And then once you find the car you need to transport it to where you are.  And then you need to find the buyer for the vehicle.  The buyer who has the cash or the resources to actually buy it.  From what I get on feedback from E-Bay it seems around half of the “sales” do not go through because people are bidding for cars they have no way to actually purchase.  And to consign your vehicle with a collector car dealer means you will pay anywhere from 10% to as high as 20% of the price to a dealership.  Consignment prices ARE NEGOTIABLE.  If you decide to have a dealer sell for you, always check with a couple dealers in your area and then negotiate the rate.  It can amount to a lot of cash in your pocket instead of someone else’s.

Unless you have lots of space to have a car sit around for several months do not buy incomplete or project vehicles.  Also do not take on one of these unless you are very mechanically inclined because paying someone else to do the labor for you means you will probably NOT make a profit.

Remember, that there are several types of collector vehicles out there.  Muscle Cars are one segment that seems to be more reliable on increasing in value because they are the prefered vehicle for the Baby Boomer Generation.  The largest number of buyers means the seller has more opportunity to sell for more.  There are also classic cars and collectible cars and antique cars….not to mention the resto-mods and customs and hot rods.  Resto’s, customs and rods are among the hardest to make a profit on because they are highly subject to personal appeal.  The buyer has to want what you have almost exactly, and since personal tastes are so varied it becomes much harder to find the one buyer you need.  There are literally thousands of hot rods being sold for half of what they cost to build every year.  While they represent a chance to buy something really cool and unique-  sitting on a car for several months before you sell it can be very discouraging.  The idea is to sell a car within a month or two of the time you buy it.  Making 20% on a car and “flipping” it every 3 months means you make 80% gross profit on your money every year.  In reality you should be able to flip 2 or 3 per year and make from 40-60%.

Well….that is the basics and for those who wonder why I would release the secrets of the business….there are a few reasons.

First of all–to show that I do know what I speak of.  After all I am looking for an investor for a business.  Second– the more people getting in on this the more demand it creates and demand always drives up prices.  And third– I would never give up all the secrets.  Like for example the 200 plus websites I use to find cars and the transportation plans for getting them. 

Davey boy


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