Buying and selling cars for profit breaks down into five steps. Those steps include: researching the right car to buy, inspecting and buying, advertising, selling, and handling taxes & titles. There is a wealth of information for each individual step but we’ll cover just the basics in this article.
- Researching the right car to buy – Just blindly jumping in to buying a car will almost certainly yield a loss. You want to do all the necessary research to maximize your profits. This includes, looking around and seeing what the car dealerships are selling, what the price they sell for on Craigslist is, what kind of competition you’ll be up against, and any / all info you can get.
- Inspecting and Buying – Once you have figured out the car that will sell, you need to go buy it. Inspecting your car for a safe buy is crucial if you want to buy and sell cars for profit. Buy a used car that runs good and will only take a small investment to make it look or run great. If a car has a dent or any imperfection, that gives you leverage to negotiate the price down. The key to making money flipping cars is to buy a car at the right price.
- Advertising – Advertising your car for sale is exactly what sells it. If no one knows it’s for sale, how do you expect to make any money selling it? You can experience a lot of success selling cars on your local Craigslist, eBay, local classified ads, and signs. These are really inexpensive ways that yield great results. I usually implement all of them at once so I can sell the car in the shortest amount of time possible.
- Selling – Once you have a lead, you should choose a place to meet up (should be somewhere safe that you feel comfortable, usually a grocery store parking lot). Don’t pretend to be a car salesman, that’s probably why they didn’t go to a car lot. Just let them look it over, ride along on the test drive, and be quiet. When they’re done, ask them what they think and if you can make a deal. Don’t open yourself up to negotiation if possible.