Last month, ‘Karl’ bought a used BMW M3 with his savings, and today he sold it with $4,000 profit. It’s a considerable amount of money in one flip. Most people might have already bought and sold a car at some point. Your grandpa might have switched between 10s of the car because he’s 80 years old now. It sounds cool and riveting having to flip the car for a substantial profit.
At the basic level buying and selling a car for profit is purchasing a car and selling it for more. There are many success stories about flipping cars. Here’s how you can do it too.
Financing a used car can be intimidating at some stage, but while trading one thing with another, it all comes down to investment. If you have a hefty amount at your hand, you can start the business right away. If you are short on money, ask your friends and family for the first investment. Now, you ought to invest in an attractive looking car that any buyer keeps an eye on.
Check state’s law
Every state has its own directive regarding how many cars a person can buy and sell a year. Usually, one can flip five cars a year without a dealership license, but the number varies from one state to another. If you want to make more profit, now it’s a matter to ask your family members and friends to help you with the business.
Let’s do the math
Suppose you are legally able to flip five cars a year with a $2,000 profit. You then ask two of your friends and four family members; that makes 6*5 = 30 cars a year. With this, you are making a profit of $60,000 a year. In total, you will be making $60,000 + 10,000 = $70,000 a year, which could be a profitable side business.
Having a dealer’s license allows you to sell as many cars unless and until they have a clean title and meet the state’s inspection requirement.
Buying the right car
While you choose a car to buy, consider an average used car buyer who relies on trust. According to the trusted source, the best-selling used cars are from the brand Toyota, Honda, and Chevrolet. A great tip is to buy these cars with minimal damage to the interior and exterior. Auto traders often consider car auctions as a better place to buy a used car.
It’s often overlooked while trading with a car, but it’s imperative to know the car owner before you jump into buying your desired car. If an owner is too desperate to sell a car at any price you called for, then double-check the car’s title document. Under the hood, he might be putting you into the shady business.
Do right price Deal
You will not be making an overwhelming amount of money selling a used car; thus, price matters a lot while flipping a car. When you shop for a used vehicle, bargain with a seller to price it at $5,000 or less; it’s a fair amount any used car buyers think reasonable. Look at the market trend and report down the value of each car brand’s buy and sales rate.
You, as a dealer buying a used car from another person, it’s worth negotiating on price. You don’t want to deal with the value that could hurt your business in the long run. Car with lots of scratches and dents sells at less value than one looking fresh.
Get a history report.
It’s just a matter of a couple of minutes to get a history report of a used car when buying one from a seller. The improved online report generating system has been paying off a lot in the used car business. Looking at the car surface doesn’t tell you much about the car history. There may be hidden blankets the seller tries to hide for overvaluation of the car. If you reside in Australia, then you are in safe hands with Quick Revs Check. Click here to get a fast, affordable, and straightforward history report of a used car. It will be a lot easier and quicker for you to get the registration details, financial reports, history checks, and more of a used car.
There are impressive pieces of information you get with Revs Check.
Financial check: Provides an up-to-date report of a car if it has outstanding finance.
Stolen check: Checks if the car you are purchasing is reported stolen.
Write-off check: Examines if the car is written off by the insurance company.
Cars running several miles often have a problem or two. Having a mechanic to inspect the car you are about to shop for is always a good thing. An experienced mechanic can instantly tell whether a vehicle has an acceptable valuation or not. Ask him to check how the car sounds and performs under cold start. Be wary of unnecessary slog while the car starts. An experienced mechanic tells you whether the vehicle is a good deal or not and provides an idea to increase its value and upsell.
Being a friend with a mechanic teaches you more about the vehicle than you would do with routine inspection.
Refurbishing a car
Everyone fancies a good looking car. Buy a decent looking used car and remodel attractively. You will be earning double the profit just by remodeling cars’ interior and exterior.
Searching for the right buyer
People buying a used car are often short on money. If you have a car that can sell up to $3,000 of a profit, you should not be talking to a buyer who expects the deal at base price. Look at the current market price of a car and value it accordingly. You should not go crazy high at a price nor lower. Keep it basic and work your magic to upsell at a profitable amount.
Subsequently, social media marketing is looking good these days. Create a virtual retail platform and upload some high-quality pictures. Examine buyers’ activity and try improving if they like polished interiors or the exterior. If you think your car is worth the negotiation, then be prepared to strike the deal at an expected profit.