Store Turns Salvage Cars into Profit Featured

By Jeffrey Bellant July 11, 2018

 

One man’s junk is one dealership’s inventory.

Co-owners Candice Price and Ron Devers started Home Team Auto Sales last November in Omaha. Neither had sold cars before, although Devers had run a repair shop.

The pair keeps 25 units on their lot, selling through a mix of traditional financing and buy-here, pay-here.

Most are domestics, with an average retail price between $3,000 and $4,000. The average model year is 2006 and average mileage is 130,000.

What makes Home Team different from other stores is where Price and Devers get their inventory. While most dealers head to their local Manheim or ADESA auction, these two go to Copart and Insurance Auto Auctions.

Price said the pair believes the money is made on the front end. That means taking on salvage cars.

“A lot of cars we have are rebuilt,” Price said. “Nebraska is pretty easy with its salvage branding and inspection process, thankfully.”

Nebraska is different than many states in that it experiences a lot of hail. This means more cars head to the salvage market without being in a crash and suffering non-cosmetic damage.

But several of the cars come to Home Team in need of major repair.

Sometimes a vehicle may just need a bumper cover and other times the vehicle may need everything, from a hood to a steering column, Price said.

Devers’ background in auto repair makes this easier.

An additional reason Home Team keeps its acquisition costs low is its down payment strategy.

Price and Devers try to get what they’ve put in the car. They rarely take less than $1,000.

If they need to get a higher down payment, they work with the customers for pick-up payments, sometimes for up to four weeks.

Salvage auctions aren’t the only source for Home Team. In fact, they’ve been getting more vehicles from trade-ins.

“When we got into this, it wasn’t something we had thought a lot about, Price said. “People bring in good vehicles.

 

 

 

Last modified on Wednesday, 11 July 2018 23:20