Business Venture Regarding 73-87's

[jdguthr1986]

Just a real quick question:

Is there still a high demand for these older Chevy and GMC trucks? For instance, if I was to purchase one, and put a little money into fixing it up - do you think someone would spend 2,000 dollars on one?

[VileZambonie]

It's all preference and where you live. Look on KBB.com

[fitz]

This may be a regional thing.
What kind of shape are you talking about for $2000.
I have a used car license in Mass and decent cheap chevy trucks are hard to find.
I do run across them at the auction from time to time, but they are getting rare.
In Mass you would have a hard time buying a half way decent truck that would pass inspection for $2K, never mind turning a proffit on it.
If you can do it and make a few bucks at it go for it, but like I said, around here you would have a hard time making money on a truck you are selling for $2000. It just cost to muck to get a decent truck as a starting point.
We have plenty of running parts trucks for cheap money (like this 84 K30 I paid $1000 for). Unfortunatly you would have a hard time making this truck roadworthy by spending another $1000 on it. This thing will become a parts truck soon.
Can you post pics of the trucks you are talking about?
    

[Stewart G Griffin]

In my opinion:

1) Absolutely yes!   Very high demand for 73-87(91)'s.

2) Shortbed trucks are in super high demand.

3) depending on each individual truck, it might not even have to be running or roadworthy to sell;  For example, if the cab is rust free consider it sold.

i think the key is buy low, sell high.  i think a profitable business could be made buying and selling these trucks(along with other models i.e, camaros, monte carlos, hondas etc---it's a business why limit yourself to one particular model etc.)   

[Lt.Del]

in my opinion, these trucks are very numerous out there, again, as mentioned, depending on the area.  A rust free truck in the northeast for example may be worth fixing up, but, you ain't a gonna git her cheap.

I dabbled with vintage mustangs years ago.  Bought low, rebuilt engines, did body work, painted them...all myself.  Guess what, I sunk more into them than i'd get out of it. Now, we are talking 20+ years ago.  The market had gone up since then, and gone down since then.  Now, with the retro looking new mustangs, demand for the older ones are coming back, but, the economy now throws a curve ball in that.  The top prices aren't being paid.

These trucks are all over the place, in general. Be careful.  You can sink as much money in it than you return and that is not counting you labor...by the time you factor in labor, you'd be lucky to be gettin' minimum wage.

just my 2 cents.

[78 Chevyrado]

The key is to wait for a great deal to come along.  Don't get in a hurry to get a truck.  Check junkyards, youd be amazed at some of the vehicles that come through to be crushed...  some of the are in good enough shape that id put tires on em and drive it.  also goto local auctions...  just be patient waiting for potential deals.

[jdguthr1986]

Guys, I'm reading and listening, please keep the responses flowing!

[fitz]

I'm just curious how you picked a target selling price of $2000 and what you expect your proffit to be?

[jdguthr1986]

Oh, well... reason being here on the oregon Craigslist a pretty solid rust free 81-87 is about 2,500. I bought one for 400 bucks the other day that just need a transmission. I installed a TH350 that I already had, and sold the truck for 1,000 - but it was pretty rusty... plus I have an insane obsession with the 81-87's... I mean it's so bad that I'll subconsciously see them everywhere, like I won't see the truck but I'll look, because my deeper mind knows there was one in my peripheral.

But anyway, I agree... Ultimately it's a business proposition and by limiting myself to these trucks, it becomes a major niche market, but I was thinking more of like a hobby thing that I could make money with because, as my wife knows, I enjoy just wrenching on these trucks, it's therapeutic.

The price-point would have to be on an individual basis, but I just happen to think I can acquire these trucks super cheap (Few hundred, like this one: http://portland.craigslist.org/clk/cto/1848605685.html <--- I think I can get that for 400) and then I happen to have a perfect bed I can bolt up. Then because I like working on it, I can just take the intake, heads, carb, and just freshen them up with a simple gasket kit, clean 'em all up.... Just set a limit, like 600 bucks, then I'm into it for one thousand, and I can post it up for 2,000 (Though I would take 1,500)

I dunno... Any other angles you guys are thinkin?

[jdguthr1986]

Also, I agree with Sgt Del - I think I would have to be going into it NOT for the money.

[fitz]

That link to craigslist was removed but I have a few more ideas to run buy you.
Around here that perfect bed that you have would sell for $1000 (doesn't matter 8',6', fleetside, or stepside, mint beds are worth $$).
So as far as buying a truck for $400, installind a bed worth $1000, and doing some more work all to take $1500 for it, not worth it.
I'm not trying to discourage you, just showing you some things to think about.
You may find that there is more money in selling the parts that there is in selling the vehicles.
I would take some pics of your bed and list it on craigslist and see what happens.
It will be a way to test the waters to see what parts are selling for in your area.
What are the title laws in your state? Will this be a nightmare with the paperwork?
How about transporting/test driving these vehicles that may not be registered and insured?
I would get yourself a car trailer. When people are selling vehicles (especially cheap old trucks) the sight of of you showing up with a car trailer shows that you are serious about making this a cash&carry deal.
Do you have a junk yard near by you. If so call and check the price of scrap metal.
Around me it's at $155 a ton. Which means I could get that $400 truck you mentioned earlier, strip any good parts off of it, and still junk it and get over $300 for it.
Here's a few pics of trucks I did this with, it works.     

 

[Stewart G Griffin]

i've thought about this alot---and still do:

1) i think this could make an excellent part-time business.  Part-time is the key phrase here.
a) i would say half the battle is getting to the seller first with cash in hand----if you're first on the scene then you've got a great chance at a deal.  Since not too many people are doing this, (i suspect, because most people are "sane" and choose to work jobs....) then it's actually good market to get into. GM(esp. chevy) + rear drive ALWAYS sell.   Always

b) Do you have a system----need a trailer(or tow dolly at minimum) and a place to park the vehicles.

2) keeping in mind that  GM+rwd ALWAYS sells:

a) maybe establish a minimum price(profit margin) that you will sell for.  For example a relatively rust free longbed 2wd that you got for $1500, you would sell for no less than $2000.  So $500 profit margin on each vehicle etc.   Remember it's part-time "hussle," so if takes a few weeks to sell, so what?  i think $500 on $1500 is a pretty good return on investment.  That's like 33%?

b) i've sold enough vehicles to "sort of" know this could work.  i turned a profit on most of them not intentionally---i sold them because i couldn't/didn't want to keep them:
Examples:   75 nova  bought $500 sold $750
67 chevelle  bought $1200, sold $1600
87 camaro  bought $1000, sold $1275 etc.

c) again, i don't think the vehicles nessesarily have to be running to sell especially on the truck side.  You wouldn't be able to nessesarily sell them for as high a price, but then you wouldn't be buying them at as high a price either.    The key is being the first to the seller.

3) if you wanted to go full-time then it's a matter of buying more inventory per week and keeping it on hand per week.  If it gets to that point it's time to look into getting a dealer's licence.

[jdguthr1986]

Dude, right on Stewie - Thank you for posting some real figures. Part-time to start and try my hardest see what God does with it. I'd want to do this with complete integrity. Car trailer? Check. Place to store them? Check.


 Fitz, you're right. Thank you for injecting some reality into my perception. It's hard to hear, but I'll concede entirely. Legal: I'll have to research and ask around. As far as parting them out - I have parted out two of them so far, and both times that went really well, so I would agree with your assessment that it may be more beneficial to do that.

Overall, I'm leaning towards parting 'em out - A) because that would take care of the driving unregistered thing and B) I've made money on the two trucks I parted so far ironically both '77 1/2 ton SWB Scottsdales.

Thanks a ton for your responses and time, guys. I sincerely appreciate it!

[Grim 82]

Car trailer? Check. Place to store them? Check.

If you are willing to pay for the fuel there is a rust free 73-87 in every tree row in western and central ND that you could probably talk somebody out of for $100. That's been the going rate on parts trucks around there. But, every one of them will be a 4wd long bed with a grill guard and a 100 gallon fuel tank in the back. Fuel tank sold seperately. When you go east in the Fargo range rust becomes a big issue.

[jdguthr1986]

HAHAHAHAH! That is hilarious, Grim. But I certainly don't doubt it.