what's up everybody we are going to
string this little camera out real quick
all right getting the head of the game
today
all right boys and girls so our video
today is going to be based on buying and
selling the salvaged vehicles we're
going to talk about some of the risk
involved and we're going to talk about
profitability and you know some of your
responsibilities if you're one of the
people that decide to go this route and
also some of the liabilities if you
decide to go this route because this can
be a dangerous game to play it can also
be a really profitable game to play but
needless to say whether you're the
consumer or whether you're the guy
thinking about doing this I would
definitely tune in and also if in fact
you are a salvage retailer will
appreciate your input because I actually
don't salvage titles I have sold them in
the past but I don't make a habit of it
because it's just headachy not saying
it's not worth it I'm just saying it's a
little headachy and it is kind of a
niche thing so it's kind of like
specialized I've told y'all before find
out what you're good at
stay in that market this is one of those
things if you're good at it then stay in
it and do it and be the best at it
but don't make cars up like don't start
and do half salvage and then try and do
it you'll brand yourself as a salvage
dealer which is ok because people buy
those but it's hard to do both sides of
the fence so just stay focused all right
so let me determine how you figure out
whether something is Salvage or set for
destruction a destruction title would be
salt water damage a car that they figure
that there is no way that it can be
safely ever put on the road again and
then the insurance company will set a
security or a reference of destruction
on a vehicle now that's not necessarily
a bad thing but enemies just a parts
parts all it means but if you can get
ones that have let's see some of the
brandings are out there was a theft
recovery you could do
former flood another other branding out
there would be taxi odometers you know
there's just different brand needs out
there but this particular one is
salvaged and salvaged basically comes
from basically a car's head and told her
from an insurance company generally
speaking the insurance company has chose
to settle it out and they're gonna send
it through an insurance adjuster and the
insurance adjuster somehow is either a
gonna sell back the car to the person
that owns it or B they're gonna put it
like a place like Co part and Co part's
going to turn around and blow it out
there no problem all right so what
happens is this you buy the car and it's
salvaged and if it's salvaged you may
need to be you may have to get a rebuilt
title salvage and rebuild what salvage
history is one thing rebuilt is another
rebuild means you have to go take the
car get it rebuilt you can do the work
yourself but you're gonna have to have
it inspected by a place that can verify
that it's safe for the highway usually
they're not too hard on you when you're
doing that but it is a little bit
involved if you're I mean but if you're
in that game you understand what I'm
saying but you if you if you buy one
thinking hey out well it needs to be
have a rebuilt I know I'll be in and out
it's not gonna be a quick process
because it's it's gonna be an inspection
process with whoever your inspectors are
and then on top of that you're gonna
have to get everything it takes to get
yourself passed along like it's it's a
lot of red tape in some senses and now
this is what you do for a living and
this is how it works for you then
turning around and getting a car need to
have a rebuilt certification it's not
really that big a deal especially if you
have a crew there that can do the work
but if you're an individual it's gonna
be problematic because you need a crew
basically to get your car right I guess
it depends on what's wrong with the car
I mean you know that's one of those
things I'm starting out as we give you
the wrist here's a risk you can buy a
car that needs to be have a rebuild
certification and if it's fubar and one
thing we all know what that means then
the chances on you turning in the back
in the cash aren't very good of course
it's still a parts car you're not gonna
be a total loss but
just know that like it could happen now
as far as um as far as like what are
they work like what is the value of a
salvaged car all right well that's
argumentative basically but I would say
this newer cars you know there may be if
it was Brandon I'm just saying let's
just take a brand-new car brand-new
doesn't matter and let's say brand new
it's 30 grand that's what the MSRP is on
it and it's totaled for some reason and
you fix it and then you want to retail
it so now what's it worth well with a
salvage title the probably the most
you're gonna get out of a car is a third
if it's if it's whatever Book value is
you're a third to a half on a new car
you'll be closer to a third because they
have you know MSRP is kind of inflating
anyway so you'll be closer to a third
now on a later model say oh five let's
say less than ten years old you're gonna
be closer to fifty sixty percent and the
older you get let's say you bought a car
or salvage title drover for five years
you're selling it again the older they
get the more the closer they get to in
value like argumentatively a two
thousand dollar car with a salvage title
is still worth two thousand dollars even
though it's a salvage title even if the
nice even without a salvage title isn't
I mean people will still give you two
grand for it
when you start really noticing the value
differences between the salvage cars and
non salvage cars is when you start
needing banks to loan money most banks
have an issue half the banks half the
banks have an issue with salvage the
other half don't really care like they
will they were like okay well I'll
advance you because it looks good on
their books and it puts them in a better
place and they don't even mention that
it's Salvage usually but it can it can
be a problem to get financing on one of
those so in in one respect if you are
buying one and you're gonna drive it
personally and you can let's just throw
it out there let's say if you'll buy a
20-19 right now that you know for a
third of what it costs and your cash
and you're gonna drive it for several
years eight nine years whatever five six
years who cares I mean at the end of it
if we took a 2012 right now Camry with
50,000 miles on it that you bought new
in 2012 but it was a salvage title it's
it's gonna have it'll be within probably
three or four grand of the other one so
it's not gonna be that consequent get
the more Salvage helps you but the newer
you get the more you're gonna see the
difference on it that's so that's how
the valuation works between the two oh
that's my experience with it now some of
the salvages I'm a really leery of but
once again it's all your background if
you're a paint-and-body guy sky's the
limit I mean you can just take wrecked
cars all day long and throw them on your
frame machine check them and start
switching parts cut this and weld that
on you're back in business move on to
the next one but if you're just a
regular guy just trying to do this and
try and do that you just got to be
really leery on the salvage that's just
my personal take whatever whatever you
whatever you're a cup of tea is but
that's just not mine alright what else
is important on salvage ok so retail you
have to disclose it's better to disclose
even as an individual but retail you're
most states are going to make you
disclose that it's Salvage and they're
gonna make you disclose it to the
consumer and they're gonna make you
disclose it to the bank that's financing
as well so you got you got that like
there's no way around it so how do you
overcome a salvage car or how do you
make it presentable to someone and
they'd want to buy it simple explain it
to them they'll just like I did hey guys
look you're gonna buy this car for half
of its value you're driving it anyway so
it's not really a book value issue you
get a lot more car for your money right
now a lot more dependability a lot more
reliable you know the whole thing
although all these benefits that you're
getting a much nicer ride for a very
little investment so a lot of people
hook up and now a matter fact I've got a
friend of mine that's all he does guys
he don't mind he if you gave him a
straight title car I think he would
probably call the law I'm not even sure
he even has the ability to deal with a
straight title car but he does sell the
living and he
as a list of them he usually keeps maybe
five or six on his lot but he has a list
of people that you would not believe
waiting in line to buy these cars and it
is ridiculous and he is he's making 2 3
grand a pop but he's doing it a lot
easier than the guy is doing it with the
normal cars because with him he's really
good at buying them so he's buying right
now he'll buy like two thousand twelve
fourteen fifteen fifteen hundred bucks
two grand he's putting a thousand
fifteen in them and selling them back
out for fifty five to sixty five hundred
all day long for half of their book
value and people they can't get enough
like they love it they feel like they're
screwing the system and they kind of are
and they are kind of winning but at the
same time to be fair they're not getting
a car that is technically Book value as
much as worth as one that doesn't have
Salvage but in this particular case I
know who he is and I know how he does
his cars and I know they're completely
safe which is really really cool all
right what else was I gonna say now yeah
so I know what this is gonna come out to
you so stablish cars work great for
rental cars if you're in your own rental
business like you're renting cars
yourself because they're gonna be
branded after you rent them anyway so if
you can if you can bring in a later
model Salvage car in it's a way to
leverage with a smaller amount of money
for a bigger value because the person
renting the car doesn't really care and
you know you're just gonna run miles on
them and once you get done my land I'm
out anyway they ain't worth nothing you
know same they're gonna be worth this
any of my money is the other one you
mild out that that doesn't have a bad
title so I you know I think they're
excellent for rental as far as totes a
note to really get into that I wouldn't
mind if I accidentally bought a salvage
title when a running carts are ready to
go let's just say that you're somehow
it's already this is happening it's fast
you're looking at buying it now it's
already ready to go I don't have a
problem with buying one if in fact I can
steal it and that's just a car dealer in
me but even as a private individual if
the cars been on the road for quite a
while and after the repairs done and
it's gonna be a fairly good shot that
you're gonna get a decent car without
much worries so
I don't mind I don't mind that so much
especially if they got a few miles on
them because it kind of gives it that
little test run that you kind of need
alright let's see so we talked about
retail as far as financing I told you 50
you know banks half homecare half Oh who
don't and you do have the issue the ones
that do about how much they'll finance
or even if they will so definitely check
that with your finance source that's
kind of a it's kind of a gray area still
out there in the car business but it's a
big area because there is a lot of
freaking salvage cars out there and this
is a huge market and there's not a lot
of competition in it so this is
definitely an opportunity for you to
step up and make some money if you need
to I'm just throwing it out there and
you've got a way to safely deliver the
car meaning you'd have a way to get it
nice you can do flood water you know
freshwater flood damaged cars are
excellent way to make money as long as
they haven't went too far out them
that's a whole other video but you know
you can get into those fairly reliable
without much of a problem
you know you're not gonna have
structural issues you're not gonna have
mechanical issues worst case scenario
usually got clock Springs or something
like that with the airbags but
regardless not a very big deal you know
so in the salvage world that's kind of
like krumlov grim if you if you if you
will it's a little nicer to buy a flood
car than say one t-boned on the side
it's a lot faster flip to but anyway so
if you go to auction them you're gonna
have to disclose that everybody that
you're doing business was gonna know
you're dealing with salvage cars so just
know that ahead of time it's okay it's
okay because there is a market for it so
don't let me do rail you in any way
shape or form
um as far as lot financing a salvage
cars I think it's okay like if I bought
one tomorrow and I spent $800 on the Sun
fire they had a salvage title I wouldn't
care I would tell the guy that some lot
finances oh yeah by the way it's got a
branded title move on and if you don't
like it put them in under the car but
most people that are getting self a lot
financed it's not an issue so but it
does give you an opportunity to buy that
car a little cheaper if you you know on
that level if you can find out it's got
a salvage title it's a tool it's a tool
for us to make profit guys that's what
it's all about everything
in the business is about you to find a
new way to make money it's all about
cash flow like I told you the old man
told me when I started I'm in 1989 the
car business has nothing to do with cars
it is only about money taking a small
amount of money and making it worth a
little bit more about of money so
whatever version you can do of that this
is this is how it's done
all right anything else is important on
that I think I'm probably pretty got it
covered I'm like I said Co parts a great
resource you can log on to those guys
they I think it's free for the first few
or something like that or you can pay a
monthly fee or a fee to be like how I
don't know some extra access but
generally speaking go to Copart and you
can kind of figure it out on your own
and just kind of use the search
parameters for whatever you're looking
for and good to start just start fishing
around see what happens I mean you might
you might find something you like and
you know you might be they'll screw this
but whatever I mean they got like tens
of thousands of cars it's not like they
have like 20 cars to pick from they
literally got tens of thousands of cars
everywhere in the US period they got
them they're loaded with them they got
cars motorcycles they probably got
planes for all I know I know they got
boats they got anything with a machine
in it that an insurance company can
write off Copart puts their hands on so
I would say yes they probably do have
planes of some sort
all right guys so that's gonna be my
short video over the night and I thought
that was interesting I got asked about
that that's why I went ahead and touch
base on that it was too big of an answer
or reply to actually just text it or put
it in text format so I wanted to give
that reply back out so you clearly
understand what I'm talking about and of
course if anybody's got any questions
they can definitely let me know I will
always be available for that meanwhile
what else is going on oh yeah yeah so we
had a video the other day this is pretty
funny this guy was just amazing to me so
a guy a guy we were talking about how do
you handle money cash when you're large
amounts of money when you're going to
cuz we go to high-risk areas we're
dealing with low low-end cars or with
this subject we were almost about low in
cars and
in high risk areas and of course most
people most car dealers have some form
of defense whether it's a how they lock
their money up whether they're carrying
firearm or some type of protection they
have some type of you know back-up plan
in case something happens so me
particularly I carry I always carry a
gun with me I mean I'm just that guy I
mean I'm not it's not that I'm like a
bad person for it I mean I'm just you
know that's just how I do it I mean I'm
not gonna give you all my money and let
you steal my car or lose my life because
I'm unarmed that's just how it is so
this guy because we were talking about
it and some of us agreed the you know
hate some of us had I think one guy had
a nightstick I think Auto buff I think
he's talking about a pistol anyway a lot
of us have different you know firearms
or whatever and pin it on your state
laws I mean you may not have that kind
of access but this dude goes on about
everybody on this channel and he starts
calling us he says that we will we will
shoot unarmed minorities in the back and
this guy just goes on this huge rant
about this about work hard people now
remember in car business we don't
actually have color only flower we got
is money it's green and you know our
channel is diversified as humanly
possible we have every every every
corner of the globe people tie into this
this channel and watch from it I mean
every possible race that we know and
every combination of any other race
that's out there washes our stuff and we
got a lot of support everywhere and
they're all our brothers I mean we're
all on the same page we're all working
the same deal we're all trying to learn
how to do this and you know we help each
other out I learned from me I learned
from me sometimes I whatever I mean
we're just kind of like a big it's a
it's a community the car channel is a
community we're all part of it everybody
gets on usually says hi I mean we're
that's what we are so what we do which
is okay the chance so if this guy starts
I don't think he will I think I'm gonna
ban him but anyway if he started jumping
on you calling you names or whatever I
apologize ahead of time but you get some
frickin nut cases and YouTube and I
don't know how else to put it but we
just do I'm just warning you
at a time in some nutcase is jumping on
you talking about it after specially if
you commented I apologize let me know
I'll bail
meanwhile I'll be on tomorrow night and
if you've got a sudden if you want to
talk about I will be back on at 8
o'clock here to rock the house and see
what you need and nothing but love from
the rainy yet cloudy yet overcast
RV a Richmond Virginia anyway send him
peace and love throughout the planet and
if you need anything
hit me up shop our amazon go to our
homepage at the icon shop do you drop
for godsakes meanwhile I will see you
tomorrow peace out my brothers and
sisters well as soon as I figure out how
to turn this off just kidding just
kidding