Each car they pay tens of thousands in cash straight. Millions in Cashflow. I know most going to say kongsi gelap cuci money but I wonder if got real investors pool their money to start a business in this. Anyone from this industry know?

start from small la

ya start from small

menabung dari kecik bro

mafia behind the scene

I’ve wondered this as well. So much cash upfront

you not scare your car get burn?

Kongsi gelap are real investors too

Yayaya. But come on, it can’t be every single one of them is kongsi gelap operation? I’m referring to those small independent ones you see in kajang etc not mytukar etc.

people dealing in cars are loaded. cars are usually 2nd most expensive purchase people made in life (after property). not only cars, bike shops too. one in SA has a youtube channel weekly update selling tens of used big bikes from 10-20 up to 100k.

Friends bro in law is one. It's one of his ventures and he started small and grew big. He knows what are hot sellers and target demo. Old pickups he push to plantation folks, workhorse Protons to contractors and Indons etc. He also does basic ABC classification of Inventory. Fast moving shit he stocks more that the recon MPVs.

Interesting fella to talk too. And nope he's not affiliated with triads.

daddy kasi,..

banks offer floor stocking facility

go google to learn more

This post has been edited by TechnoG: Feb 9 2022, 09:27 PM

You mean he started his operation from two three cars to those shoplot with 50 cars? That’sa few million in inventory. Banks willing to lend capital?

Thanks. Finally the first nugget of info learnt.

Floor Stocking is a revolving credit facility extended to Panel car dealers for the purpose of financing the purchase of the dealers' motor vehicle stock

bank got loan them money for cashflow, thats why they can buy cars in cash, and used car is a high profit margin business

each car they can earn rm10k at least, the least also rm5k per car for those hot models

recon cars even more untung

gg habislah trade secret kena ajar

now u all know how they make 20k monthly

meanwhile autolaundry used for actual money laundering hopefully in next episode

Bro, telling people abt revolving credit facility for car dealers is not a huge secret reveal. They won’t lend to any tom dick Gary.

This post has been edited by diffyhelman2: Feb 9 2022, 09:48 PM

Kongsi merah cuci money!

This post has been edited by Aligee: Feb 9 2022, 10:01 PM

Thats why ayam wondering too why would banks simply loan money to any ah kow, ali, or muthu.

They will secure the credit facility against something like your house property business etc.

Means they dont "start small" lahh?

Rag to richest start small lor..banks wont easily give credit facility and one must have some sort of collateral against it.
If you play the game right like NAZA build ties with the right man in powah..become rich in no time.

start small as dealer employee and build up your reputation

find some big boss partnership and open your own used car shop lor


just like you open company also need capital/start-up fund right?

Yeah it a business where the dealer will front all the risk first and banks facilitate.

It's not as easy as it sounds.

Yeah some literally do

One wira bekam 2 3 4 4 4 5 5 6 7 8

Grind your way up...

You can try yourself with cash to buy off people and flip highly sought after cars like vios civic... Myvi corolla etc

Or highly sought after enthusiast cars.

Those that say high profit margin, risk is also high and some of those margins need to pay for security and insurance of all those cars from damage fire stolen etc while in their care and still unsold.

This post has been edited by diffyhelman2: Feb 9 2022, 11:24 PM

Yes and also buying a car of someone who still under lon. You gotta settle the full amount with the bank even before it can be transferred to your company/name... These are risks.

I imagine a mechanic who really knows abt the car can start like this. Get a car that seemingly has expensive problem that owner wants to get rid of cheaply, fix the part cheaply n sell for high profit, like flipping a foreclosure.

now not easy with carsome and mytukar coming in

Might as well ask where kedai jam tangan get their money

Mechanic has less risk and less working cap to entry...
You will eventually hire your own handy man to fix these cars to last for few months...

Kek

Now this I wanna know...
Esp those watch dealers...
Millions in stock... In a small shop.

This post has been edited by Fenix98: Feb 9 2022, 11:36 PM

taikor
cash from daddy
banks
nowadays also got p2p like capbay, funding society

One of my friend used to do this a bit, he sell aofatts and vellfires with a partner, one pc at a time and one sale can untung like 40k. It was long time ago and not doing it anymore

thank you but no tq for this low value input, got others chimed in with better info before d.

Take money n put in washing machine.

Start from small and never cash out profit. Flow back inside business. Try it, you'll be surprised how fast your shit grows.

This post has been edited by whyamiblack: Feb 9 2022, 11:54 PM

Throw them even a few PP I am sure they really have that much of cash to give you.

Kena AP scammed then shy?
Heard about these when these dealers chat
There will always be these few conman pentipu scammers...
Hefty losses...

This post has been edited by Fenix98: Feb 10 2022, 12:01 AM

used car why still need to deal in AP? or you mean grey importer? saw some shoplots, whole row is white black alphard/vellfire.

Eventually some grow to take on the grey imports..
Thats a diprent ball game... The buyer pays for the import taxes duty etc once the car is sold..... This area they left it grey... Must be trade secrets.

now cannot do because too many competitors, u see how many recon dealers selling aofatts n vellfires now, but yeah recon cars especially those MPVs are the real big money maker

Kind of in the business.

Those used car dealers you see pop out of nowhere with many nice cars available for sale? Those are money laundering business. Many of them are run by former underworld bosses. They wash their hands and start "clean" business as a used car dealership. Bulk of their profits are actually from the shop loans they give out to buyers. The interest on those loans are close to exorbitant.

The bootstrap companies normally start very small. They purchase really bad cars then fix them up to a saleable state and sell them for a profit. Example, 8k for a run down myvi. Put in a few thousand to repair and touch up. Then sell it for a few grand profit. Normally myvi, wira, saga are the most popular ones. As you make money, you get better vehicles to sell like pick up trucks and C segment cars.

There are used car dealers that get bank loans as well. They operate just like regular car dealers.

As a DIY enthusiast, these are the ones I really respect. They have the most value add among all the different types.

some cars are owner's own, sell on their behalf

Dunno how small he started but he used to either open a hardware shop or was a supplier of building materials. So not sure if capital purely organic or from bank. Don't know if his lot has 50 plus cars but he did tell me some in his lot aren't his inventory.

He turns around fast, that's his secret sauce I guess. Pickups to plantation folks, Protons for contractors and cars with bootspace like exoras to SMEs that need to make deliveries. That and the contacts he made from his supply business.