Learn How to Flip Cars
Flipping cars can be quite exciting, it’s a fun business that allows you to drive new and different cars and generate great money at the same time! Make money buying and selling cars.
Buying, repairing, and selling cars is an excellent way to supplement your income. There are laws rules and regulations that are specific to each state so make sure to check them out before you get started. For example California will allow a person to buy and sell 6 cars per year without the need of a dealers or wholesales license.
Basically car flipping is just what it sounds like. Buy a car for cheap clean it up, make any necessary repairs, and sell it for more.
I don’t like to mention that the economy is in bad shape too often but it’s relative to the nature of this business. Right now it seems there are many more cars for sale than there were a few years ago. I’ve noticed that lately people have been in a hurry to sell off their extra vehicles because they are in need of some extra cash. In doing so they are leaving out crucial details and leaving money on the table.
Buy and Sell Cars for Profit
It’s important to know that money is made and lost on both sides of any car transaction. The art of buying a vehicle or anything for that matter is quite important and worth studying. Of course the goal is to purchase it for as little as possible get and get as much as possible when selling it. Learn more about negotiating everything
When purchasing a car that you intend to resell, there are many things to keep in mind. First the price, the price is just an asking price, it’s just an idea that a person had and thought they might get for it. Many people consider a large price range when selling a car. If for example a fair value would be $1,200 dollars, they may have considered selling it for as much as $1,600 and as low as $850 dollars.
Often people leave out crucial details such as changing the oil, fixing an obviously broken piece or part, repairing a dent, and in many cases don’t even clean the car before putting it on the market.
Many times when purchasing a car, a seller will tell you what they think is wrong with it. Why they think it’s less valuable than what their asking. They will point it out and apologize for it, you have to use that as a tool and continue to remind them of it. If they don’t tell you, you will need to find a detail that stands out that you know they are aware of and bring it up. It’s similar to a “hot button”. They know it’s there, perhaps it’s a dent in the fender, some old tires or anything else that may stand out. By the way this is what happens at professional car dealerships as well. In fact their is special training on how to “devalue a vehicle” and in many cases it’s where the most money is ever made in a car deal.
It’s ok to purchase a car with small problems, even several small problems, as long as you’re capable of fixing them. A beginner car buyer can easily make the mistake of purchasing a car with a bigger problem than they can actually deal with. I’ve personally made this mistake in the past, the car seems appealing because you can get it for such a low price, but if your not in the market to take apart an engine it’s better just to pass it up and keep looking. If you buy a car you can’t repair, you will often end up selling it for what you paid for it after many long hours of attempting to fix it. Unless your a professional mechanic, you should stay away any vehicle with a blown head gasket, transmission problems, or electrical problems.
When making an offer It’s ok to go in low, really low, even at the risk of insulting someone. It’s often the only way to discover what a person is really willing to accept for a vehicle.
Moving on, now you have a car and you were able to get it at a great price, there are a few problems and you know how to fix them. You should have a check list of things to do once you have the car. First, being items like changing the oil, giving the car a full and complete Auto detailing etc. The goal here is to make the car shine, make it run smooth and do it for as little money as possible. Often you can get several hundred more for a vehicle just by making it shine. Additionally, simple things like a gas treatment, adding window washer fluid, de-greasing the engine, cleaning the carpets and interior can net you hundreds of dollars more in a car deal.
The best deals often happen in the morning. In many cities the Auto Trader, car sales publications, and of course the classified ads are available to locate potential buys. Inevitably each week there are a few gold mine available. You have competition but if you’re willing to wake up early, get the publication first, and are willing to wake people up on the phone at 5:00 in the morning you can make thousands every week.
Getting the car back on the market, each area has it’s own unique ways to market a vehicle. Of course you should consider auto publications, classified ads, bulletin boards at the grocery store, and parking it in an area where the public can stop and take a look. Many cities and town have a popular corner, field, lot, or other location where you can place a car for sale.
Determine an asking price for the car and remember be reasonable. There are resources such as Kelly Blue Book to determine the value of a vehicle. Fair condition is often the most accurate pricing model on KBB.
Selling is an certainly an art, one that can be learned. Study it. There are many book on the art and profession of selling and it’s definitely worth your time to read a few of them. One of the main tips I can offer is to ask questions, find out what a person is looking for in a vehicle, and what their needs are. In most cases people are buying the need or want and not the car. It could be if it’s a young buyer they are looking for a great sound system, if it’s a family they may need more space, or perhaps a buyer is looking for something economical. Find out what their motivation is and then keep mentioning how your offering can meet their needs. The customer will often give you everything you need to know to complete a deal. Don’t choose your favorite feature, choose theirs. If they mention that they like the fact that it has more room. Keep mentioning it. Once you find their hot button, push it.
Flipping VS Curbing
Flipping a vehicle is the process of purchasing a car registering it in your name and then placing the car for sale. If you selling many cars you should probably take the time to get licensed and insured, there are two types of licences in the car sales business. The wholesalers license is one that allows you to buy and sell cars on the wholesale market (not retail). The wholesalers license will allow you to go to dealer auction. The dealers license will allow you sell cars on the retail market but in many cases you must have a location to offer cars for sale such as a lot or field.
Curbing cars is considered illegal in most areas so make sure to look into your areas laws regarding this before you decide to do this. Curbing a car is to purchase a car and immediately putting it back onto the market, the vehicle never actually goes into your name. This is quite common for car mechanics and auto body techs who come across many cars. You usually have ten days to transfer a vehicle into your name. It’s most common to curb a vehicle if it’s immediate and within those ten days.
The cost of getting started with this business varies greatly depending on your skills at repairing vehicles, detailing them, etc. You can get started for as little as $400 dollars with a cheap little cars and turning it into a $600-700 dollar car.
Read more about auto detailing A great secondary business to the one you just read about and important skill if you intend on buying and selling cars.
Additionally, you may interested in the Auto Body Repair Business