What sort of profit margins can be made buying used cars from car auctions?

My friend has a car dealer friend who brought a car for £3,000 sold it for £6,000 brought another one for £4,000 then sold it for £6,000 and another one brought for £9,000 sold for £17,000.

He says he spends a few hundred pounds on repairs on each car .

Is the profit margins really this big?

4 Answers

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  • Anonymous
    1 month ago

    He is exaggerating a whole lot.

    Doubling your money almost never happens except on really cheap cars.

    Like a $400 car sold for $795.

    And that $400 car might have sold for $500-600 a different week.  To win a car at an auction you have to outbid every swinging dick there.

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  • 1 month ago

    do you believe everything your told?  ..my family are in the car game ..we have owned a garage for 70 years ...we do everything ..repairs ..mot`s ..tyres ..body shop ..but we don't sell cars ..profit margins in majority of cases are too small and too many comebacks ...and with the virus its the wrong time to even try ...then there's the traders insurance you will need 

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  • Anonymous
    1 month ago

    You have to fix the car yourself or you will not make any money.

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  • Ian K
    Lv 7
    1 month ago

    It depends...

    Does your shop with space/storage for your project cars? 

    Do you have tools/skills to take on major repairs?

    Do you have time to deal with trying to sell them?  Do you want strangers over casing your place/shop?

    Do you have funds to gamble on auction cars, which may be worth thousands less than you expected after you find out motor and tranny are shot, frame cracked, can't get the smell out of the interior, etc...

    I've done it a little as a hobby to have cheap daily drivers that I have flipped for a little cash, after factoring in labor (my free time, which I value), I probably broke even.

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