Buying and selling used cars can be an extremely profitable endeavor if you go about it in the correct manner. If you want to try and make money this way you should be aware that the government does regulate this type of activity. So what do you need to know about buying and selling used cars for a profit?
Starting off obviously you will need some cash to purchase the vehicle. Finding the vehicle to buy for resale may take some time and effort. The ideal car is one that is a bargain but has the potential to make you a profit in the future. You need to consider if you are purchasing a car that somebody else would want to buy. You want to approach this business with a clear unbiased mind and forget about your personal preference. Searching for the car can be done by looking in classifieds magazines, researching online or just visiting second hand car dealers.
Some cars are more suitable for this type of venture. Small runarounds and work vans may be good types of vehicles to look for. Check listings to see how much they sell for. Maybe even compile your own small database to see the price dynamics of the models you specialize in. It’s important to consider what type of repairs the vehicle might need. When you have found the car you want don’t be afraid to haggle with the seller. What have you got to lose? Remain polite and don’t be aggressive and you could get a substantial discount.
The vehicle in question may not be drivable so you might need to get it towed to the required location. The cost of transportation should be incorporated into your budget. However, you don’t want to buy a complete wreck unless it is a valuable classic car and you are a restoration expert. Buying cars with minor problems can be a good idea. Fix it, clean it up and sell for a profit.
When you have found the vehicle you need to do a comprehensive assessment of the condition of the car. Read online car reviews before you buy to identify the weak spots of the particular vehicle. What’s missing? What’s damaged? Does it go? The majority of cars that don’t run are quite easy to fix. The battery may be dead or you might need to check the spark plugs. A shop manual will come in extremely handy when trying assessing and fixing your car. Getting the car running again will be a process of elimination and you should not replace anything on the car until it is running again. When the car is drivable you need to make it look as attractive as possible for resale.
This is a vital part when trying to flip the car for profit. You should vacuum the inside, polish the paintwork, give it a good car wash and steam-clean the engine and undercarriage. If the seats have been damaged then you can hide this by purchasing cheap seat covers. By making the car look as new as possible you will greatly increase your chances of selling the car. You can replace inexpensive parts of the car to maximize the resale price. Always set a budget and stick to it. Now the car is ready to be advertised.
Place the car outside your house and attach a “For Sale” sign. You can advertise online by placing a free used car ad, in local publications or put up a notice on advertising boards. Try not to be too greedy. Try and undercut people who are selling a similar vehicle.
Buying and selling a used car for profit is not easy. You need to find a suitable vehicle, put some effort into bringing the car into good shape and then advertise through the right avenues. Possessing some business acumen is a requirement but if you take every step in a professional cool-headed manner you can turn a profit relatively quickly.