Damaged Cars + eBay = Perfect Business

There’s good money in that trash. Yes, they aren’t pure crap; they can be a perfect source for building wealth.

Damaged cars aren’t useless; little repairs can do big magic you know. And with the aid of eBay, the world's biggest online buying and selling community Web site, what you considered trash can transform into sparkly dime.

CNBC shares this story:

Dragging a couple of hundred potential buyers of damaged cars around in the snow or Southern humidity isn’t the best business model for an auctioneer. That’s why Copart embraced the eBay way and started selling online. Now, the company moves 6,000 vehicles a day over the Net.

And that’s just one of the ways founder, Chairman and CEO Willis Johnson has grown Copart, which makes its money “remarketing” totaled cars for insurance companies. He noticed that about 25% of his buyers are outside the U.S., so he bough the U.K.’s Universal Salvage to expand his footprint.

The overseas business is big because it’s only the cost of living that makes a car “totaled” in the U.S. Thanks to low labor costs in other countries, buyers can pick up a late-model luxury vehicle on the cheap and get it running again for much less than their American counterparts.

The stock’s about $4 off its 52-week high, but it’s “going right back up,” Cramer said.

You might not have the slightest idea of how big the venture could be, but a try won’t hurt. If a used master cylinder lures a number of car owners, how much more if you offer cars.

Build a good reputation and don’t put a dent on it. Then, watch how eBay and viral marketing drive sales.