I buy cars, repair them and recondition them to my level of satisfaction, and send them back out the door, typically targeting 55-65 year olds. I focus mostly on entry level luxury crossovers around 7 to 10 years old, though starting to also do hybrids since there’s more profit in it since everyone is seemingly allergic to batteries and pack replacement/rebuilds.
Parts are cheap, I listen to music or a podcast, I do all the “PITA” repairs (replacing wheel bearings, ball joints, tie rods, full brake service) that are really just labor in terms of professional repair cost, perform additional rust prevention, and for sale it goes when I feel a new grandma or grandpa would never give a hesitation to load it up with all their grandkids. They also see a very thorough interior cleaning, and a full exterior detail (including paint correction when required).
It has bought every very nice tool I could ever want, most are 20-30 hours of labor including acquisition, and I’m at the point where I have repeat customers (the put a 2nd alongside the first) and have direct referrals. Now the profit mostly goes towards putting a 2nd interesting car in the garage, and some towards moving up the ladder to try to earn more per vehicle.
Selling cars isn’t bad when you don’t have employees to pay, and it lets you sell really high quality stuff. I keep thinking of how much I couldn’t justify doing, and how much my product standards would suffer if I had to pay help.
Can you make YouTube videos about it? I watch Chris Fix all the time, not for educational purpose (I don't own a car), but because they are so freaking satisfying to watch. Seeing things go from 'meh' to 'wow.'
I think the unfortunate reality of ChrisFix is to make videos at that level of quality... takes real time and effort -- plus a vehicle that merits actual work he's not done a video on yet. Hence he only puts out one or two a month, but they're of an extraordinarily high quality, which is evident in his sub numbers and view count.
I've considered making videos, but the reality at the moment is there's not yet the time to do it to my level of quality. At least not yet.
ChrisFix videos are outstanding and somewhat generalized, he really does fine work.
One of my favourite channels has much lower production values (not bad by any means though!), and is much more of a hacker. He buys something damaged, figures out how to somehow fix it up and does so. Often a bit of a bodge, lol. But the videos come out frequently and are fascinating. This channel is "B is for Build". [1]
Another channel I will recommend, more for the awe of seeing an absolute master craftsman - "Arthur Tussik". This fine Russian gentleman is almost certainly the most skilled panel beater on Youtube. His videos are bodywork restoration of mangled crash wrecks back to perfect in one short video. [2]
And finally a recommendation I'm sure any hacker will enjoy watching - "Bad Obsession Motorsport", and their "Project Binky" series. Rebuild of a classic Mini, with a twist, almost every part needs custom fabrication. Simply amazing. [3]
There are a few mechanics who stream on twitch... however that does require some level of interaction and distraction which may just be annoying to you, but doesn't require the post processing. However it's a decent sales pitch and if you do enjoy interactive with people and networking it can be pretty good.
I'd love to see your shop or even just time lapses. I really enjoy watching cnc and hand builds on youtube. It's very helpful to watch these to see what's really involved in say pulling the front end off of a mini-cooper.
It would be impossible to hit my target level of quality live, without heavy investment in the environment, lightning, video equipment, and honestly the help of someone when filming. If I can't hit my own targets, I just don't do something.
The videos would also be too long. Part of why ChrisFix is so well known is he has high-quality, edited, to-the-point content that packs everything into a concise high-quality video. I could not do that on Twitch without great expense, lots of advance planning, and helping hands.
Sure, I'm not going trying tell you what to do. You're the content creator, you need to do what you feel works or you won't make good content.
They're 2 different things, eg there's a huge difference between say ChrisFX and a twitch stream for a mechanic, though they're both basically build logs at the end of the day.
Twitch is definitely more the low overhead mass content version of content. Similar to the Howard Stern Show, or Car Talk, as opposed to The Grand Tour. Thousands of hours of contents as opposed to hundreds, or 10s.
I was just pointing out there's a market for the mass quantity content.
It's actually one of the things I DONT like about the produced car rebuild shows, they often edit out stuff just to make it entertaining to everyone, where I'm wanting to watch just to see the whole thing and the techniques. Much more like slow tv. I'm totally happy to skip through parts I don't care about.
The next time you watch one of Chris' videos, try to figure out how much prep is required for every single shot and edit. He works without a cameraman, so figure out where the camera is mounted and how it was mounted there. (hint: it's usually mounted _inside_ the car, somewhere harder to get to than the part he's accessing in the shot!)
It quickly adds up to an insane amount of effort. (Which is why he's got the best auto repair tutorials in human history!)
As an amateur shade tree mechanic myself I have so many questions! Feel free to ignore if you feel you'd be giving away your secret sauce.
1. Where do you find buyers? I'd be concerned about inventory either piling up or taking too long to sell at a price that even breaks even when you are spending time/money on fixing.
2. Do you feel your value-add is more on the sales side as a broker or is it in the repairs? I know people who just flip cars and do extremely minimal "freshing up" and are also profitable/successful.
3. How do you keep up with the increasingly locked down and opaque ECUs and other systems? More and more diagnostics require factory wizardry these days.
4. You implied that you do paint and body work. Where/how did you learn and become proficient? Most auto repairs are pretty much "follow the steps" work anyone can learn from YouTube, but body work is artistry.
5. Do you worry about liability? I'm OK fixing my own car since if I screw up it's my ass on the line. I'd be less confident in sending the car off to grandma, even if I knew what I was doing.
1. Mostly Craigslist, with a bit of AutoTrader. The reality is AutoTrader is swamped with dealer listings and sponsor listings that I don't feel I'm receiving any additional value for their listing fees.
2. Repairs and preventative maintenance. We average ~4 feet of snow a year, so tie rod ends, wheel bearings, control arms, bushes, flex pipes, exhaust hangers, etc. suffer since no one really maintains a steel car properly. The reality is when even a Honda or Toyota dealer is $125/hour and a Lexus or Acura dealer is $175/hour, people don't replace $18/ea bushings -- but when things rattle or feel loose, they sell the vehicle like it's going to explode.
These aren't difficult repairs, they just require lifting the vehicle (I have a Bendpak Quick Jack) and doing it. People also don't properly clean their undercarriage, and rustproof. I do. Very easy, very inexpensive. Though when many people treat cars as disposable, it lets a lot of nice stuff come onto the market for the well-inclined.
3. Not an issue unless you're in Porsches on up with encrypted ECUs, and even then, that prevents MODIFYING them, not reading diagnostics. Regardless, this has been a problem 0 times since I've started many years ago. OBD-II is a wonderful thing, and there's no weird shenanigans coming from Honda/Toyota at all.
4. I only do paint correction, as in "level a clearcoat" to a mirror finish, and only for vehicles that merit it (let's ignore that any car sub-$150K new comes with some level of orange peel). I do not buy any vehicle that needs a respray, ever. It can be DIY'd very well, but the amount of labor is prohibitive. Not enough money made for the time spent.
5. I've an umbrella policy, mostly because I have one for my primary business, in the odd event I ever were sued. In general, vehicles are sold as-is. Zero concern here.
Regarding point 4, do you even consider small patch work? Perhaps where you would need to apply a body patch, filler, sand & paint?
I imagine with the cars you're working with rust isn't an issue, but could be needed for minor damage. Are you passing on those cars completely or leaving those as is?
I can repaint entire panels, and blend it well enough to be indistinguishable — though ultimately I’ll end up leveling the clearcoat on the entire vehicle, which is a ton of work to do right. The problem is to hit my standard of quality it’s far too much time for the effort required. The time is better spent finding something that doesn’t need major paint repair.
I sorely miss being able to regularly work on and drive cars, but job and salary necessitates being in New York City for a long while. I have a long term project sitting and waiting for me 1000 miles from here. Will involve taking everything off the car, fixing rust, repainting and rebuilding everything. Someday...
Do you float the titles or just bend over and take whatever arbitrary limit for non-dealer title transfers that the dealers lobbied into existence in your state?
Correct. Many states have laws where if you sell over a certain number of vehicles a year, you're considered a used car salesman and must register and get licenced. In addition, if you register the title in your name, you have to pay taxes in most states, just to turn around and sell it to somebody else who also has to pay the same taxes.
Some states also take into account intent. Meaning that you need a dealers license and insurance just to purchase and sell a single vehicle, if the original intent of purchasing the vehicle was to sell it.
In my state, Oregon, for example, the DMV has agents watching craigslist, facebook, autotrader, etc. who go test drive private party cars under cover and ask the question, "So, why are you selling?" where answering that question incorrectly (along the lines of, "oh I bought it to fix up and make a few bucks") will net you a several thousand dollar fine.
That's such a scummy enforcement tactic since it's literally going out of its way to screw over people who are taking initiative to try to make money. It's not like they're flagging transactions at the paperwork stage.
Do you live in the US? In my state (wa) you need to be licensed as a dealership to do this legally and I hear this is the case in all the other states too.
There's definitely a benefit to working on the same model/series more than once. Three fourths of my amateur mechanic hours are split between asking "now why won't this darn thing come loose?" and "Oh! So I didnt't need to take all this apart to get to this piece!"
Not really, except out of necessity. Mechanics aren't, cheap, and where I am, really not cheap. Cars are just giant metal Lego.
As for paint matching, I don't. If I car needs any significant paint work, I'm not interested in buying it. It's also a sign that when I get underneath a car, I'm going to find other issues which are going to be an immediate no sale (as in welding required).
Even at normal, non-insurance repair rates (as in, full price), an independent mechanic charges around twice as much per hour than a body shop does for your average paint work (high end a very different story) -- I can get much more $/hour for my labor doing repairs than I ever will doing anything more than leveling a clear coat.
Bread and butter is the Lexus RX, Acura MDX, Honda CR-V and Toyota Highlander. There is zero issue putting them out the door, because the demand is insane. I've also started with Toyota Priuses because there's high-demand, most mechanics are allergic to batteries, and people dump them for cheap over any battery pack issue.
Though I've worked on a ton of stuff, the above is where there's A) enough people owning the above who still think all vehicles explode when their odometer hits 100K B) have inexpensive and easy repairs for simple things that are rotting or are wearing out and C) plenty of people who know better and when they test drive a 10-year old one that feels as good and looks as good as new, won't even negotiate your asking price.
I've entertained the idea of selling BMW M cars, Audi S/RS and Merc AMGs, but the reality is there's far more labor involved, far more to usually fix, higher acquisition costs, less demand, and buyers who are completely insufferable. I've sold several, but in retrospect it wasn't ever worth the time and effort.
For your target market, it sounds to me like you'd be much happier dealing with more mid-range stuff like Fords and Volvos rather than going to premium grade stuff. Parts are cheaper, usually less going wrong, and the customers are of course a whole lot nicer (disclaimer: I'm a Ford owner).
If you want to get into performance, I'd go gentle: Ford have sports lines of their usual mix (ST/RS in Europe), as do many other makes.
Also a small hatchback with a big engine is a lot more fun per dollar than a Merc...
> I've entertained the idea of selling BMW M cars, Audi S/RS and Merc AMGs, but the reality is there's far more labor involved, far more to usually fix, higher acquisition costs, less demand, and buyers who are completely insufferable. I've sold several, but in retrospect it wasn't ever worth the time and effort.
That's interesting, when I used to have a shop and flip cars on the side, honda civics and euro cars were the most profitable. Civics because you can fix them up, lower them and throw on a set of wheels and you're good to go are super easy to turn over. Euro cars are easy to pick up at steep discounts when they're older and need repairs, and the parts are actually not bad and once you get the hang of it, they're not too bad to work on.
Of course you'd want to also have accounts with parts stores otherwise you're losing too much on those costs.
However this was 5 years ago so the small crossover suv craze wasn't what it is today.
If you were to start selling BMWs/Audis/Mercs, you might also find your reputation suffering if/when things go wrong shortly after purchase. You're probably better off sticking to reselling the more reliable brands.
Every reliable source for lifetime cost of maintenance I have ever seen shows Toyota is the cheapest, that most other Japanese brands are close behind, and European brands are way more expensive e.g.
That certainly matches what I've seen happen with my friend's cars: Toyotas just keep going and are cheap to fix, Euro cars have something bust earlier in their lifetime and usually outrageously costly to repair.
I am from NZ and as a country we keep driving second hand cars until they are uneconomic to fix, and maybe half of the cars imported from overseas are second hand Japanese cars. We don't have a lot of American cars but my own limited experience with them is that they are as unreliable and costly as the European cars.
You can find some individual models within other brands that are reliable, however if you are buying a car that is 5 to 10 years old, you can't yet know if the model you are getting is a good one, so buying by brand actually makes sense. Quote from article about maintenance costs: "Toyota completely avoids the the most expensive models list" which helps averages (although I think they used median costs in that article).
I’ve sold them. The main issue is when you look at the extra profit, the extra labor doesn’t really put you ahead.
You also get a very different kind of buyer (skews faaaar younger) that honestly, is just insufferable to deal with. There’s more profit per unit, but not more profit an hour, and too much dealing with awful personalities.
that's really cool man I'd like to check out some of your wares some time. I'm very interested in giving old things new leases of lives and just refurbishing some of my old stuffs
It's illegal in my state to sell a car for the purpose of making a profit as an individual without a dealer license, and there's a limit of 4 per year.
That seems like an insane restriction on what you can do with your private property. What are they trying to protect against? People peddling lemons? There must be a better way.
I think what happened was auto dealerships successfully lobbied the state congress to raise the barrier to entry so they had less competition from private sellers.
It's only a "private transaction" if you aren't doing it for the intention of making a profit. (depending on exact laws).
Unless the laws in their state are solely based on volume, they are almost certainly acting as a dealer, which requires a dealer license and a bunch more legal requirements. In most states once someone buys a car with the intention of reselling it rather than using it, they automatically become a dealer.
So here's the crazy thing -- if you pay taxes on the profit you earn, like everything else, your state tends to not care and treats it like any other business.
Though in my state, in excess of 5 vehicles per year they start to care, and prefer you hold a surety bond -- which as of a few months ago, I do for an amount well in excess of the transaction price of the vehicles I typically sell. I also now have a dealer plate, which never goes on anything because some buyers would get weird if they saw one.
Parts are cheap, I listen to music or a podcast, I do all the “PITA” repairs (replacing wheel bearings, ball joints, tie rods, full brake service) that are really just labor in terms of professional repair cost, perform additional rust prevention, and for sale it goes when I feel a new grandma or grandpa would never give a hesitation to load it up with all their grandkids. They also see a very thorough interior cleaning, and a full exterior detail (including paint correction when required).
It has bought every very nice tool I could ever want, most are 20-30 hours of labor including acquisition, and I’m at the point where I have repeat customers (the put a 2nd alongside the first) and have direct referrals. Now the profit mostly goes towards putting a 2nd interesting car in the garage, and some towards moving up the ladder to try to earn more per vehicle.
Selling cars isn’t bad when you don’t have employees to pay, and it lets you sell really high quality stuff. I keep thinking of how much I couldn’t justify doing, and how much my product standards would suffer if I had to pay help.