Any tote the note owners?

[kenny c]

I am thinking of opening a business with my Uncle, and he wants to open a tote the note / used car dealer. I have found some info online, but wanted to see if anyone had first hand experience. I know there are a lot that get bad reputations, and that is where I think we can make a successful business model... honest people offering good deals that allow us to profit, and telling the customers up front about how the deal will work (no smoke and mirrors, as I've read in other threads and online).

[Big A]

Honest people and car sales don't mix well. Props for trying it though.

For the most part, people that need tote-the-note are not "honest people."

[talisman]

Buy this place. With his rates I don't imagine he'll be open too long.

http://www.dfwmustangs.net/forums/showthread.php?t=3266&referrerid=38

[kenny c]

Honest people and car sales don't mix well. Props for trying it though.

For the most part, people that need tote-the-note are not "honest people."

I know people that need this type of business are less than qualified to buy a new car and have had credit issues + something else go wrong. For the most part, tote the note is not a car selling business but a financial business. Most BHPH lots or TTN lots collect a downpayment which equals what they paid for it, then make their money on the payments. If they don't pay, you go get the car. GPS tracking has made this a lot easier than in the past, and you can pay someone to go get the car if you feel any danger.

[kenny c]

Buy this place. With his rates I don't imagine he'll be open too long.

http://www.dfwmustangs.net/forums/sh...&referrerid=38

See my post above... he is not in it to sell the car, he is in it for you to make payments and hoping you default so he gets the car back.

[8mpg]

It shouldnt be hard. Opening a car place is pretty easy if you are planning on actually having a lot. Advertising is going to be the hard part. Places like Drivers Select and Drive Time have exploded recently lending money to people who shouldnt qualify.

[War Machine]

I have a used car lot, we are cash only. Im too poor to run a tote the note lot. My dad runs a tote the note, he has around 60 active notes, and around 50 on the lot.


If you have any questions on anything you can pm me. Also, if you want to rent a section on my lot to start out small, I can work out something with you.

The car business can be really lucrative, but if you do not know EXACTLY what you're doing can be broke very quickly. You can expect one mistake to happen every month on buying or selling, but 2,3,4,5 mistakes can ruin you.

[Big A]

I know people that need this type of business are less than qualified to buy a new car and have had credit issues + something else go wrong. For the most part, tote the note is not a car selling business but a financial business. Most BHPH lots or TTN lots collect a downpayment which equals what they paid for it, then make their money on the payments. If they don't pay, you go get the car. GPS tracking has made this a lot easier than in the past, and you can pay someone to go get the car if you feel any danger.

What's the down payment on a new /M3 hardtop convertible? I'll make the payments, I promise.

[kenny c]

I have a used car lot, we are cash only. Im too poor to run a tote the note lot. My dad runs a tote the note, he has around 60 active notes, and around 50 on the lot.


If you have any questions on anything you can pm me. Also, if you want to rent a section on my lot to start out small, I can work out something with you.

The car business can be really lucrative, but if you do not know EXACTLY what you're doing can be broke very quickly. You can expect one mistake to happen every month on buying or selling, but 2,3,4,5 mistakes can ruin you.

I will PM you.

What price range are your cars or your dad's cars?

I'm thinking about the $2k - $8k range.

[JC316]

I have a used car lot, we are cash only. Im too poor to run a tote the note lot. My dad runs a tote the note, he has around 60 active notes, and around 50 on the lot.


If you have any questions on anything you can pm me. Also, if you want to rent a section on my lot to start out small, I can work out something with you.

The car business can be really lucrative, but if you do not know EXACTLY what you're doing can be broke very quickly. You can expect one mistake to happen every month on buying or selling, but 2,3,4,5 mistakes can ruin you.

Same here, small lot, cash only. And yeah going broke quick is a possibility, these last few months have kicked our asses.

[War Machine]

Same here, small lot, cash only. And yeah going broke quick is a possibility, these last few months have kicked our asses.

These past two months have been our slowest in 5 years. It has been rough, but January is right around the corner and you won't be able to keep the lot full.

[kenny c]

Same here, small lot, cash only. And yeah going broke quick is a possibility, these last few months have kicked our asses.

Feel free to PM me any info, and presume I have none... What is the biggest mistake or most common mistake?

These past two months have been our slowest in 5 years. It has been rough, but January is right around the corner and you won't be able to keep the lot full.

1st Q the busiest?

[JC316]

Feel free to PM me any info, and presume I have none... What is the biggest mistake or most common mistake?



1st Q the busiest?

The mistakes are almost always getting pwned at auction, either through getting caught up in bidding, or getting something that needs major repair. Early on, I got two cars with no reverse, I learned real damn fast to check for it. Another sneaky thing is that people will break out the check engine lights, no MIL light = instant failure for inspection.

Another thing is when you are getting your lot, make damn sure it's zoned to be a car lot and find out EXACTLY what you need to get your CO (Change of Occupancy). Grand Prairie almost boned us because the bathroom was in the shop area, but we managed to talk them into letting us in, since it was a car lot just 3 months prior to us.

Winter sucks balls because of the holidays, people aren't concerned with cars, nor do they have the cash. 1st quarter is always nice because there are no holidays and the income tax checks start coming back in March.

[kenny c]

The mistakes are almost always getting pwned at auction, either through getting caught up in bidding, or getting something that needs major repair. Early on, I got two cars with no reverse, I learned real damn fast to check for it. Another sneaky thing is that people will break out the check engine lights, no MIL light = instant failure for inspection.

Haven't been to an auction. Do they let you start the car, look but no touch, or... _____?

[JC316]

Haven't been to an auction. Do they let you start the car, look but no touch, or... _____?

Sit in it, start it, move it back and forth, check everything pretty much no holds barred. The only thing they forbid is driving them, which if no one is around to stop you, then there aint much they can do.