3 MIN READ
Can You Make Money Flipping Used Cars?
You've probably read about “flipping” houses in the real estate market. There are many success stories of consumers buying old homes, quickly renovating them, and reselling them at a profit. However, have you ever thought about applying this same concept to used cars? Although cars and homes are very different types of assets, there is still potential in buying and selling used cars for profit..
Unlike property, the value of a car depreciates over time. To make money selling used cars, you need to either seek out classic models or buy clunkers at a low price and restore them to their former glory. The following are a few factors to consider as you go about flipping used cars.
There's a common myth that you need to have a big used car lot to make any money. However, you can sell one car at a time and still turn a profit, which is preferable if you're just starting out and don't have too much cash. Selling used cars can generate higher profits than selling shiny new cars, and you don't have to worry about pushing aftermarket extras or car financing. Many transactions can be completed cash in hand, with a fast turnaround time.
Finding Used Cars
The key to making money selling used cars is to find models that are priced below their market value. You can search for affordable used luxury brands like Audi or Infiniti at websites like Carsales, taking note of the average price and striving to find options slightly below market value. Used cars can be found for as little as $50, if you're willing to shop around and look for those in need of some maintenance. Always make a cash offer below the asking price. Most used car sellers will be willing to negotiate with you, particularly if they need to get a vehicle off their hands.
Maintenance and Renovations
Some flippers will undertake repairs themselves, while others will leave it in the hands of professionals. It's ideal if you know a little bit about cars (or are willing to learn), because you can then save more money and turn a greater profit. Be willing to sift through automotive blogs, informative websites like carsales.com.au, and owner manuals to learn how to repair those old Volvos or Suzukis. In many cases, you can increase a car's value simply by cleaning and waxing it, however.
Selling your Cars
You can use the same online listings websites to sell your freshened up vehicles that you used to purchase the beat-up originals. Be sure to have any necessary paperwork on hand, including a record of the repairs you carried out and the vehicle's title and registration. Unlike the buying process, don't feel that you need to negotiate when selling. Because you're in no hurry to sell, you can take your time and wait for the highest offer.
With the high demand for used cars, buying and selling used cars can actually turn into more than a side business. The more you learn about classic models and recognizing great deals, the easier you'll be able to buy and sell with ease.
Good luck Penny Hoarders!