Starting a Used Car Restoration Business – Suggestions Invited

[Shantanu.lko]

Re: Starting a Used Car Restoration Business – Suggestions Invited

Anyway, coming to the point, first of all would like to suggest you NOT to look for M-800, there's no margin in these cars & single owner cars are very hard to comeby. IMO you must initially consider the following cars which can be easily fixed & sold for a profit.

Sagar Bhai, I too thought about the same. But, when I saw the Bangalore car sales site and also in our forum M800 still has great value there. Many of the TAIans from Bangalore have bought M800s in higher price (as compared to Lucknow and Delhi) and restored the cars. So, I think a mildly restored M800 may give a good profit. Have you noticed that M800s in Lucknow are losing their value fast as compared to South. Only two M800 owners on TAI from Lucknow as compared to the Southern region
The transportation and registration cost will be huge else we could buy cars from Delhi(for 15-20k) restore them in Meerut(5k max) and send them to Anand Bhai.

Maruti Van: This may sound a bit stupid but there's a decent profit in it. Due to its flexibility in uses a Van still holds its value in market. I have seen people making decent profit in purchase & sale of this people mover.
Yes post 2000 models can be slightly restored and sold for good profit. School cab drivers may be interested in a good van in low price.

 

[ss80]

Hi Sagar,

Thank you for your valuable advice, I dont have a six digit figure to start my work with, if not I would have chosen recent cars instead cars of my age. Omni is sure to give profits as there are good no:of people looking for white board omni's for business use like - school vans, water bottle delivery, carpenters, marriage flower decorators etc all of them use & prefer omni. the only issue is incase I am not able to sell the car for a good margin then I will have to retain the car in such a case, Omni will be a problem for me - I drove it once (only once) recently, I loved it a lot, but it equally scared me & I am highly unhappy about safety concerns in that car, that is the only reason I am skipping Omni.

In Bangalore most car prices are crazy - finding a good alto with PS (LXi) for less than 1.50lacs is not possible, no ads ever show price of an alto (Lxi) below 1.70lacs! & there are enough buyers at that price too.

Here is today's update:

Saw an ad in "free ads" & landed at the sellers place. The ad showed that it is "single owner, with gas, all new tyres, recently repainted, for immediate sale - 50K" The seller is somewhere related to me (his family had a car garage for 45yrs! & now he is planning to start a bullet garage & has a 65' model bullet), his tools in total weigh over a ton, he showed me room full of boxes, wall mounted spanners/torque wrenches, flywheel tool etc.

The shocks:
1. The ad had one mistake, it is not a single owner car - car is not in his name, but has all documents, car is in the 6th owners name & HPA cancellation is endorsed in the rc book
2. There is a tear in the chassy behind headlamp (a little lower), not on apron though
3. The repaint is not of great quality, car interior is so dirty (I better dont mention about it)
4. 165/70R12 New tyres are few months old, but they are hankook brand with new type 2 rims
5. 60 litres gas tank is not rto approved (no endorsement in rc book)
6. Seat covers are good (art leather) & no floor carpet
7. 100/90 kit is there, headlamps are in okay condition
8. No suspension/drive shaft issues - steering rattle - yes
9. engine sounds to be good - mounts are also in good condition
10. While repainting the car they have either did a poor job/ a cunning job - covered up inner wheel arches + all door punches in putty

Asking price - 50K
99 model
I am not sure about this one, as this might land on my head as a big bomb - it feels like the usual "New battery & tyres" trap found everywhere.

This is the only good seller I have met so far!

 

[samsag12]

Re: Starting a Used Car Restoration Business – Suggestions Invited

Sagar Bhai, I too thought about the same. But, when I saw the Bangalore car sales site and also in our forum M800 still has great value there. Many of the TAIans from Bangalore have bought M800s in higher price (as compared to Lucknow and Delhi) and restored the cars. So, I think a mildly restored M800 may give a good profit. Have you noticed that M800s in Lucknow are losing their value fast as compared to South. Only two M800 owners on TAI from Lucknow as compared to the Southern region
The transportation and registration cost will be huge else we could buy cars from Delhi(for 15-20k) restore them in Meerut(5k max) and send them to Anand Bhai.

Maruti Van:
Yes post 2000 models can be slightly restored and sold for good profit. School cab drivers may be interested in a good van in low price.

Price certainly differs from place to place but the craze for M-800 among the aam junta has faded with the launch of new cars. Maruti itself has killed (well amost) the 800 brand & this is the most sought after car at scrapyards nowadays. 800s are on the same path where Fiats/ Padmini used to be 7-10 yrs back.
Anyways, there are very few bunch of enthusiasts all over the country who still admire this car, its history & worry about its future, its just that we are the only Lucknowities on TAI.
Regarding procuring cars from Delhi, why go that far if one can find cheap deals in Lko. itself. Although this option, as you rightly mentioned, is not feasible at all for Anand bhai, it will work for us.

Hi Sagar,

Thank you for your valuable advice, I dont have a six digit figure to start my work with, if not I would have chosen recent cars instead cars of my age. Omni is sure to give profits as there are good no:of people looking for white board omni's for business use like - school vans, water bottle delivery, carpenters, marriage flower decorators etc all of them use & prefer omni. the only issue is incase I am not able to sell the car for a good margin then I will have to retain the car in such a case, Omni will be a problem for me - I drove it once (only once) recently, I loved it a lot, but it equally scared me & I am highly unhappy about safety concerns in that car, that is the only reason I am skipping Omni.

In Bangalore most car prices are crazy - finding a good alto with PS (LXi) for less than 1.50lacs is not possible, no ads ever show price of an alto (Lxi) below 1.70lacs! & there are enough buyers at that price too.

Pardon my ignorance but haven't you mentioned in your initial posts about your budget being Rs. 150000 in all. I suppose with that guy (who was going to lend you the money) chickening out at the last moment you might have reduced the total spend. So whats your overall budget if I may ask & what exactly are you looking for?
BTW I hope the money with which you are going to start the business is, currently safely parked in some investment.

 

[Shantanu.lko]

Re: Starting a Used Car Restoration Business – Suggestions Invited

The only issue is incase I am not able to sell the car for a good margin then I will have to retain the car in such a case, Omni will be a problem for me - I drove it once (only once) recently, I loved it a lot, but it equally scared me & I am highly unhappy about safety concerns in that car, that is the only reason I am skipping Omni.
If you find a good Omni you will get decent profits. Once you will start driving Omnis you will fall in love with the no bonnet view. Also if you can hire a driver and start the school cab work.

1. The ad had one mistake, it is not a single owner car - car is not in his name, but has all documents, car is in the 6th owners name & HPA cancellation is endorsed in the rc book
Try to negotiate the price holding this factor. as the chain of buyers may make the selling of car difficult. Also remember that the 6th owner will have to sign on the forms. and will have to visit the RTO to take the NOC. Genuine signatures are required. I remember that I wasted time and money due to signature mismatch
2. There is a tear in the chassy behind headlamp (a little lower), not on apron though
This will not hamper the drive quality. So this factor may be neglected
3. The repaint is not of great quality, car interior is so dirty (I better dont mention about it)
Ask a painter for the price of paint touch up or you may use some stickers to make the car look good
5. 60 litres gas tank is not rto approved (no endorsement in rc book)
Try to return the gas kit and negotiate at least 12k
6. Seat covers are good (art leather) & no floor carpet
Floor carpet or the rubber mats ?
10. While repainting the car they have either did a poor job/ a cunning job - covered up inner wheel arches + all door punches in putty
Get the quote of this job from the painter and try to negotiate the amount

Asking price - 50K
Bag it down to 30k
Remember negotiation is buyers birth right.

 

[jarpickle]

Re: Starting a Used Car Restoration Business – Suggestions Invited

Tear in the chassis can be due to accidents.This could be one of the neglected cars at his garage that he got because the owner never paid for the repairs.Don't remember to get the NOC from the cops for any used car you buy.

Shantanu, you are suggesting him to go around his beliefs.He wants to be honest in his work.I find your suggestions not worthy of this forum.We do not promote shady dealings here.

 

[rayal]

Re: Starting a Used Car Restoration Business – Suggestions Invited

i am following this thread regularly.
anand, be +ve, dont give up, and wait for turn and definitely you will get a good car. I observed car rates in bangalore are high when compared to other areas. Take care regarding proper records, as you are again going to sell.

 

[ss80]

Wanted: Maruti 800 Type 1 or Type 2

"tear in the chassy" is the first major issue with the car & then is the painting.

I might have considered it if the tear was on any body panel, but as we all know in any FWD cars, the apron area is really crucial & it is difficult for me to compromise here. The car had been repainted about 9months ago & it is very clear that the engine bay & interior was not touched while doing the same, so the tear is easily atleast a year old. The age of the tear is the major concern for me (as metal fatigue starts with time).

The tyres:
As mentioned earlier the car has 5! (chinese company) hankook tyres in excellent condition.

I hate many chinese products (not all) & chinese tyres are a big no-no for me, because I would never take my family on a long highway trip trusting these tyres - hankook etc. I might be wrong about the quality of chinese tyres, but then I cant pass them on to the next buyer & since the cost of these tyres is a contributing factor to the car price, it would be a dead investment.

The gas kit:
The gas tank was empty & hence could not check if it works fine (if it had been working, any one selling the car with it would have filled atleast some thing in it, as it is one of the usp). I am looking for only petrol car & the owner was not willing to take back the lpg kit & reduce the price.

Either I have to repaint whole car/ dont paint at all, patch work will affect resale value. The "carpet" was totally missing in action & the rubber mats were as old as the car was. Although I will definately replace them in any car I buy, still teh absence of the mat, made me feel somewhat.

I have skipped this car too & still waiting for the good one.

Sagar:
Bhai, right now I have a max budget for M800 as below

1. M800 Type 1 - Rs.35000/-
2. M800 Type 2 (Carb) - Rs.40000/-
3. M800 Type 2 (Mpfi) - Rs.55000/-

Restoration will be a bit slow till I get some more cash, but M800 surely has enough buyers atleast as of now. After having met a handful of sellers in the city, my confidence of selling it for a profit is much higher. I am specifically looking for M800 Type 1 (or if possible M800 type 2carb).

A request to TAI members:

Please refer me to anyone you know (friend/relative/colleague etc) who is willing to sell of a good M800 (for less than 50K) anywhere in Bangalore.

If you know anyone whose car has the below specs plz refer me
My expectations -
Clean Documents: even third owner is fine, but owner should have his name on the documents
Clean Chassy - CLEAN APRON, RUNNING BOARD, untouched PILLARS, no weldings atleast in engine bay

I am not asking anyone to check the below points, but I am fine with the below faults. If I find a car that meets above points, I am ready to pay approx. 25000/- for a car (even if it has the below issues)

Engine: 6/10 & above (oil leaks, squeaks etc are fine)
Gearbox: no prob even if it doesnt work/has major issues/clutch etc
lights, wiring etc - not required
tyres - should be good enough to reach my home
battery - good enough to start a few times
seats & seat covers - torn/compressed/abused/stained (no probs)
drive shafts - kat-kat, tuk-tuk any noise from them is acceptable
Paint - faded, scratched, dented (mild ones), repainted, stickered - no probs
fenders & bonnet - any condition is fine
windshield: cracked, scratched, wiper blade marks, stickers- fine
mechanicals: suspension probs, leaking radiator, dynamo, belts, faulty carb is all acceptable.

By looking at the above the wishlist you can easily make out that I am definately not looking for the "PERFECT CAR" or even anything closer to it. Even with the minimal expectations I have, it is hard to find cars that fits my bill. Either I find scrap cars half-buried in sand or I find silly sellers (selling tyres & seat covers ).

 

[jarpickle]

Anand, Hankook is korean.How was the handling of the 165/70R12?Was it on stock rims or alloys?

Btw, the Honda comes with 5 Aura multispoke alloys as you seen in the picture.

 

[ss80]

Yeah it was on stock rims, steering was lighter than normal cars but somehow the name feels chinese & having read a lot of bad reviews about the "Nankang" "Maxxis" & kumho tyres I assumed hankook to be a chinese one. Still a MRF/JK sounds more safe to me (I may be wrong) than these brands.

 

[ss80]

I was searching again for car on quikr etc & found the pic of the car I had seen this afternoon. Here it is the repainted car with crack/tear near left wheel inner arch.

 

[jarpickle]

Kumho is korean too.Btw the H on the Hankook looks more like and N.This tire could be a Chinese ones.Why do they have to make fake tires, playing with the lives of people.

Ps:There is an oil spill below the car.

 

[Shantanu.lko]

Re: Starting a Used Car Restoration Business – Suggestions Invited

Shantanu, you are suggesting him to go around his beliefs.He wants to be honest in his work.I find your suggestions not worthy of this forum.We do not promote shady dealings here.

PLEASE DO ELABORATE WHERE I AM SUGGESTING ANAND BHAI TO GO AROUND HIS BELIEFS. REGARDING THE STICKERING JOB, I AM JUST SUGGESTING HIM ABOUT THE AREAS WITH DULL PAINT ie THE BONNET, FENDER. I HAVE SUGGESTED HIM TO GET THE QUOTE FROM A PAINTER AND NEGOTIATE IN THE BUYING PRICE. [JUST TO GET THE PAINT JOB DONE NOT TO KEEP THAT AMOUNT AS PROFIT]

IF ANAND BHAI FIND MY SUGGESTIONS ARE WRONG AND MISGUIDING. THEN I APOLOGIZE FROM HIM FOR THE SAME AND TRY NOT TO POST ANY FURTHER DISCUSSION HERE

 

[ss80]

Shantanu:
Please do not get offended, I am sorry for the posts (by me/ any member) that hurt you. but lets stop discussing anything here till I buy a car. As of now cash in hand & waiting for right car.

 

[Shantanu.lko]

Re: Starting a Used Car Restoration Business – Suggestions Invited

Shantanu:
Please do not get offended, I am sorry for the posts (by me/ any member) that hurt you. but lets stop discussing anything here till I buy a car. As of now cash in hand & waiting for right car.

Please don't say sorry. I felt a bit offended but later repented on posting that lines in BOLD. Sorry Keith Bro We are members of this TAI family. And I consider you all as my elder brothers, so you all can correct me anytime if I post something wrong.

 

[ss80]

The hunt continues, I get to see more & more scrap dealers dressed as car sellers & somehow they have their cars in their uncle's name! Here are 2 more visits I did (yesterday & today).

View attachment 97659
The above car is in 2nd owner's name, weldings everywhere near the lower arm mounting area & floor has been welded by the most inexperienced welder. Asking price 49K!




This one really tested my patience to the core, front lower cross member welded, door almost gone kaput, all locks broken, running board, apron corners, A pillar curves are completely rusted, all bald tyres, torn stepney tyres, wet carpet, broken dashboard & the car had a puncture when I went to see it - asking price 38K (not worth 5k). I had called up this guy to ask him about the condition of the car & specifically rusting issues, he spoke very well & said only running board has issues I will get it fixed if you are buying it. I drove almost 40kms up & down to see this rust bucket. No wonder why people go for dealers & used car showrooms, not everybody can hunt endlessly like the way I am doing it