If you are a car enthusiast looking to make a little bit of money, why not think about car flipping? It’s the process of buying cheap, and selling on for profit – and it can be lucrative if you play your cards right.
Now, if you want to make this a permanent lifestyle choice, you can – but you will need to set up as a car dealer business. However, if it’s just a one-off deal, you can put this practice to work without any bother from the taxman. Read on to find out everything you need to know.
First of all, you don’t need to know a lot about cars to get started – although it can be handy to know someone with knowledge. The main thing to worry about is the potential value of a car. Your best bet is to use a service like Parkers, to make sure that you know what the market value is. In general terms, if you spot a vehicle that is selling for a lot less than this, you might have spotted a bargain.
Where to find cars
Your next step is to find a car for sale. You can do this on sites like Craigslist, eBay, or even your local newspaper. You can also use industry magazines like Autotrader, but you will face stiff competition. Keep an eye out in your local area, too – you will often see cars with signs on that belong to people looking for a quick sale.
This is the most important step of all. You aren’t necessarily looking for a car in perfect condition, of course. But, you should be wary of expensive problems. Check the service history and find out if anything has gone wrong – use a mechanic to give the vehicle the all-clear.
Now, make any repairs that are necessary – and don’t forget to clean it, too. A good valet can mean the difference between a high sale and a low one. And, given that it can take as little as an hour to clean a car, it’s a sensible move.
If you want to make the most profit from the sale, you can also think about tuning it up. There are risks, of course. You will find that your target market is a lot smaller, though. The only people interested in paying for a tuned vehicle are car enthusiasts, rather than the average person. Head over to Torque Cars for some great ideas on how to use tuning to increase the value of your wheels.
Next, it’s time to advertise your car. If you want a quick sale, you could take it to a dealership, of course. But, the chances of getting a market value price will be slim. Your best bet, then, is to find a private buyer. Look into getting a spot in an auto magazine, and also, look at eBay and local newspapers.
Make sure the car is good to go before selling. There will be a few questions most buyers will have, so ensure you have the answers. Most people will try and haggle the price down, so set a bottom line that you don’t go beneath. If the interested party tries to lowball you, just walk away until you find someone with a sensible offer.
And three you have it – your first ever car flip. It’s a simple process once you have done your research. Let’s hear about any car flipping success stories you might have had!
Good luck with the new regime – let us know how you get on!