Flip Cars for a Profit
Template:FormatBy: Ryan Anderson Last Updated: March 27, 2022Buying used cars and selling them for a profit is a very fun and fulfilling way to make some money on the side. Although it may seem hard, even beginners that are not mechanically inclined can be successful at it. To start, you will need to familiarize yourself with the used car market and start looking through the Facebook marketplace, craigslist, and offer-up cars listed for sale. The key to finding a car for a cheap price (that you can sell for profit) is to only buy from private sellers, not from a dealership or business.
Steps
- EStep 1: Finding a vehicle to purchase Selecting a car that runs and drives is key. If the vehicle needs extensive work, it is going to cost you too much time and money to make a profit. From a beginner’s standpoint, look for vehicles that may only need simple maintenance and repairs such as a fluid change or a new battery. A clean vehicle title is also a must, as salvage title cars are not worth as much money. Also, take the time to search for similar models of the same year with close to the same mileage. This will give you an idea of how cheap you must purchase the car to be able to have room for profit.nter one step here and then click "Add Step"
- Step 2: Purchasing the Car The most important rule to remember is that cash is king. People are much more willing to accept full cash payment for their vehicle rather than a check or banknote. Be polite when bargaining with the seller and be careful not to lowball. Offering too little for the car they are selling can upset them. Don’t be afraid to ask what their “bottom dollar” is and if you can make them an offer that is less than what they asked. Sometimes people just want it gone and out of their driveway and will accept. Make sure to test drive the car and see if it works properly, even if it is just around the block. Try to bring a friend or family member that is knowledgeable about cars, if you are not.Enter one step here and then click "Add Step"
- Step 3: Prepping the Car for Sale This step is crucial in ensuring you can make money when you go to list it. · Give the car a good wash/cleaning (inside and out) · Perform a multi-point inspection · Repair what is needed · Take 15+ quality pictures of the car (inside and out)If you have any friends and family that know more about cars than you, have them help you inspect/diagnose the car of any problems. Multi-point checklists are available for free online and will give you a long list of things to inspect such as brake pads, tire tread, oil level, turn signals, etc. Another advantage is that common auto parts stores will test and replace your battery for you if it were to need one.Enter one step here and then click "Add Step"
- EStep 4: Selling the Car for Profit List the car for sale on the Facebook marketplace, and any other free selling platforms. Some sites have a fee, so that is up to you if you think it is worth it or not. Make sure to list the exact information of the car, the known issues, and fixes, and provide many quality pictures. Based on your market research, you should know how much the car is realistically worth. Depending on how much of your own money you put into the car, you should list it accordingly. It may not sell right away, and you may have to wait longer or lower your price. Any profit is a win!nter one step here and then click "Add Step"
Tips
- 1 Look frequently for recently listed cars for sale, to get the best chance at finding the deal first.#2 Most states require a dealership license if you buy/sell a certain number of cars a year so investigate that. #3 Be polite when bargaining with sellers
Warnings
- 1 Do not spend all your capital on a vehicle, leave wiggle room.#2 Be cautious when meeting online sellers in person.
