What's the worst that could happen? Car buying edition.

So I have had a lot of time off recently, which gave me ample time to watch videos on Youtube, specifically videos from one Cerealmarshmallows. Now, hopefully some of you are aware of this man's work, as his videos on strange "one-owner" cars have been an internet staple for some years. Or maybe they haven't. Who knows. Anyway, his work as of late has not been the greatest, and it seems to me that his business (and indeed his business model) has been failing for some time. But it got me to thinking: what if me and a friend regularly went out to Cali, bought cars, hauled them back to the Midwest, and sold the rust free, not-often-seen cars here? I'm thinking that there has to be a market out east for rust-free older JDM/EDM stuff, right? I figure Cali is a good starting point for finding diamonds in the rough, due mostly to their car tax system, which seems to lend itself to out-of-state sales, unless I am sorely mistaken. Admittedly, I am a veritable noob at this, but I want so badly to open an enthusiast-driven dealership that's as unseedy as possible. I know I'd need a dealer's permit, and of course a location, but I think a permanent home could follow after some success. I know I'll need to be able to have access to auctions, but I feel that most of the cars could be found via craigslist and the like, though admittedly that's a gamble. I think it would be a good idea to have a car finding service, and of course a willingness to also ship. I think finding the right cars is key. Sure, I might find an '85 Seville that's super clean and low miles, but there's no market there. Anyone have any experience with something like this?

You may not be the first one to think of this idea.

However, when you figure in the cost of airfare, plus food lodging, and fuel for the drive back, there simply isn't much profit in it.

In modern times of the Internet, anyone can buy a car and have it shipped back east. People who own 3-car trailers (or bigger) can do it more cheaply than you can. They also don't have to worry about the cars breaking down on the way back.

Besides, if you want to make money in the Midwest, you'd be much better going down South (it's a LOT closer) and buying rust-free older pickups. That's what people in the Midwest want to buy.

I suppose I should have added that we would be driving there/trailering the cars back, and that California is not the only place we'd pull cars from (I'm looking at you, Atlanta CL.) And no, I am not exactly reinventing the wheel (I am not a beautiful or unique snowflake,) but I do think there's a market for this, if done right. Profit margins would definitely be small, but sustainable. I don't think of this as a way to get rich, and as such have set my goals accordingly.

I suppose Midwest is a bit more into domestics, but even so, I do think there's a market for more than just old trucks, thankfully.

I would imagine you could potentially be sitting on inventory. I agree with Evan. Trucks are the quick turn-around. Sports cars, not so much.

I've thought about it many times but all of the numbers show me that it won't work financially.

In Ohio, you will need a physical location with posted and staffed hours in order to have a dealers license. In addition to these hours being inspected, you location will need room for one car indoors and a paved lot. This means no mobile home office in a dirt lot. I know some of those exist but my guess is they are grandfathered in.
http://www.dmv.org/oh-ohio/buy-sell/car-dealers/dealer-licensing.php
http://autodealers.ohio.gov/

Based on that info, I think you are better off to forge a relationship with an existing dealer and buy via his license.

As others have said, dull vehicles will pay the bills. You need a certain amount of them and then add in "interesting" vehicles from there. The hard part of "interesting" vehicles is the time it may take to find the right buyer. Heck, with any of this, dealing with the end consumer is the hardest part. Also, be aware that car sales is less about selling cars and more about selling financing.

So, where can you get a quick buyer and frequent buyer?
I would focus on heading only as far South as you have to; Carolinas and Atlanta to buy vehicles at auction. Bring those clean vehicles back North and sell them wholesale to dealers.

These same small dealers could go down and buy the cars themselves in The South but they are busy with running the store and making the sales. These small operators don't have time to be down south once a week or once an month. I would build a list of retailers and when you buy down south then shoot them pictures, prices and condition review.
Spend little or none of your time reconditioning the cars, just move inventory.

Or you could garner a local reputation as "The guy with those cool, old trucks for cheap." Trucks are the way to go.

These days I suspect you will also need to foster a relationship with a local credit union so people can get loans to buy the old stuff. Plenty of want, but hard to sell a used car with enough value to establish profit for you to people who can't borrow to buy it. If it costs more than the daily limit at the ATM than your market is too small to be quick or reliable.

As a guy who was looking for an older truck in ohio not long ago id agree with most people about the local market.

Thanks John for that information on dealerships.

You guys raise some good points on the selling side, but I really want this to be enthusiast-driven car sales, and affordable at that. We're talking inventory that would rarely crest 5k, so financing shouldn't be a problem, as most folks looking for a enthusiast-type car should already have the money. Furthermore, a physical location is not the only means by which I intend to sell. I think it would behoove us to list some cheaper models here and other places such as BaT. Part of my vision would be to do in-depth videos on the cars to help drive up interest via a youtube channel. Now, this is a lot of work, so I intend to start small. I don't intend to fill a lot to the gill with esoteric cars, but rather, start with maybe three. Sell them, go from there.

you stick to the enthusiast stuff, leave the trucks to me.

Check out fireballtrucks.com for an idea of what southern metal can sell for up here. He appears to do a brisk business in 60's to 80's 4x4 trucks.

In CA, the seller is legally liable for repairs if selling a car that will not pass smog. I wasn't going to knowingly do so as an individual, so I junked my car. As a dealer, no way. There are some workarounds, such as converting the title to non-operable at a specific time of the registration window, but I don't know how these titles work when crossing state lines.