There is good money to make in buying and selling cars. People need vehicles for everyday use, and some individuals or families even own two or more. Needless to say cars are important in everyday life, which also means there is a big market for them.
First you need to have some capital to invest in buying a car with good resell value. Know where to find the cars that sell, and when is the best time to buy. Once you find the car, determine if reselling it would give you a good deal or not, before you make the purchase.
It is imperative that you look for a good deal to make the most money out of it when reselling a car. In other words, get a good buy, and asking the car owner why he is selling can help you determine if it is.
Are they selling their car because they need the money, or are they selling it because they want to get a new one? If they are selling their car to make a profit, you probably won’t get the good deal you’re looking for.
An indication that can tell you the market is ripe to buy used cars for reselling is a recession or high unemployment rate, because people can resort to selling their cars, especially if they have more than one, to make ends meet.
You have an advantage if you know how to do minor repairs because you can ‘tweak’ the car to make it more attractive to buyers. You can get a good price for cars with minor body or mechanical damage that you can repair, but stay away from those that have bad engines or transmission problems.
But where do you find suitable cars for resale?
It probably did not cross your mind, but a good place to find good cars is at government auctions. Cars seized by government agencies such as theIRScome in different types and models, even high-end ones, and auction these at very low rates. If you join an auction, be ready to have an expert inspect the car to see if it is in good condition; you can have it checked immediately should you win the bidding.
Like everything else, cars can be found being sold on the internet through many sites such as eBay. It pays to check old listing for cars that have not been sold yet. Do not buy the car without seeing it and inspecting its condition first; always meet up with the buyer to ask questions and do an actual checkup.
Spread the word among your friends, colleagues, family, relatives, and their friends that you are looking to buy a car. Word-of-mouth is another effective way to advertise what you’re looking for. You can opt to advertise or put up posters or handout flyers; just be mindful of the expense so you don’t stretch your budget.
While you can buy cars from another city, it is still best to buy locally. While you may be willing to drive for hours to another place where the car and the owner are, it incurs expense on your part, not to mention your time and effort. Because it is imperative to see the car yourself to be able to inspect it, choosing local buyers would be a wise move.
And who’s to say you will like the car in another town once you’ve seen it? You might realize it isn’t such a good deal after all when you find the car is actually in poor condition. Bottom line is to minimize expenditure to maximize profit from selling the car you do finally buy.
When selling a car, you need to take on the mindset of a dealer – you sell the car to a person who wants to own and use the car, not to resell it after getting it from you. You’ll be hard-pressed to make a good profit from selling the car to someone who intends to resell it for a profit yet again.
Apart from the traditional media used to find your market, use technology to help you find buyers. Go to websites that allow you to list items to sell in online marketplaces for free. Virtual marketplaces are teeming with people looking for a good deal online. You might just find your perfect buyer in sites like craigslist or eBay.
Check regulations in your state about how many cars you can sell in your name in a year. If you want to sell more that what is allowed, an option is to sell the car in another person’s name, such as a member of your family or a close friend. If you want to turn this into a real business, get a car dealer license.
When selling a car, make it look its best to get a better chance of a quick sell. Before presenting to the buyer, make sure it has been washed, vacuumed and buffed. All exterior dirt and stains should be gone, and the tires and wheels are clean. A nice touch is to make it smell good.
If you advertise, show pictures of the car from all angles, and highlight whatever detail the car has that can possibly attract buyers, such as a clean motor or good tires. And choose an attractive background. Seeing a photo of the car with a background of a beach full of people catches more interest and attention than one with the garage door as a background.
Are you making money buying and selling cars or thinking about doing so? Be sure to share your comments, thoughts, ideas below…