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Where do used car dealers get their capital
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TSdiffyhelman2
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Feb 9 2022, 09:07 PM, updated 4y ago
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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?
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TSdiffyhelman2
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Feb 9 2022, 09:21 PM
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QUOTE(KineticKill @ Feb 9 2022, 09:19 PM) 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.
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TSdiffyhelman2
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Feb 9 2022, 09:29 PM
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QUOTE(9m2w @ Feb 9 2022, 09:26 PM) 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. 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?
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TSdiffyhelman2
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Feb 9 2022, 09:30 PM
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QUOTE(TechnoG @ Feb 9 2022, 09:27 PM) banks offer floor stocking facility go google to learn more Thanks. Finally the first nugget of info learnt.
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TSdiffyhelman2
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Feb 9 2022, 09:47 PM
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QUOTE(quartre88 @ Feb 9 2022, 09:40 PM) 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
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TSdiffyhelman2
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Feb 9 2022, 10:14 PM
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QUOTE(WaCKy-Angel @ Feb 9 2022, 10:11 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.
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TSdiffyhelman2
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Feb 9 2022, 11:23 PM
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QUOTE(Fenix98 @ Feb 9 2022, 11:20 PM) It's not as easy as it sounds. 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
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TSdiffyhelman2
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Feb 9 2022, 11:27 PM
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QUOTE(Fenix98 @ Feb 9 2022, 11:22 PM) You can try yourself with cash to buy off people and flip highly sought after cars like vios civic... Myvi corolla etc 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.
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TSdiffyhelman2
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Feb 9 2022, 11:51 PM
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QUOTE(novblaze @ Feb 9 2022, 11:31 PM) Might as well ask where kedai jam tangan get their money thank you but no tq for this low value input, got others chimed in with better info before d.
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TSdiffyhelman2
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Feb 10 2022, 12:00 AM
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QUOTE(Fenix98 @ Feb 9 2022, 11:56 PM) Kena AP scammed then shy? used car why still need to deal in AP? or you mean grey importer? saw some shoplots, whole row is white black alphard/vellfire.
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TSdiffyhelman2
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Feb 10 2022, 12:19 AM
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QUOTE(Eskape @ Feb 10 2022, 12:16 AM) 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.
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