Surely you have heard something about house flipping, which is based on buying, remodeling and selling a house to make money. Well, there is something very similar with cars: car flipping. What is it about? The idea is to buy a used car, make some necessary repairs and then sell it for a higher price. You dare? We give you some tips.
Start here …
In theory, the secret of success lies in buying cheap and selling more expensive. However, in practice it is not as simple as it sounds, explains the Money Crashers site.
First, you must make sure that you meet all the requirements required by law. For that you must obtain the corresponding seller’s license.
These are three tips to get started, according to the aforementioned site:
- Familiarize yourself with local and state laws regarding the automotive code. You should know how long you can keep a car before registering it.
- Learn to find used cars for a lower value. It is important to do it quickly and legally.
- Get to know the local used car market.
How to do car flipping in three steps
Jeremy Fisher has been dedicated to buying and selling used cars for more than a decade. This is his three-step method to do it successfully, as he posted on The Penny Hoarder site:
- Find great deals to buy cars. Fisher does not spend more than $ 4,000 on any car. He has even bought some for less than $ 400.
- Repair any aesthetic detail, mechanical problem and clean it! In some cases, it is a simple wash. In others, a complete engine repair will be needed.
- Publish and sell the car. Fisher recommends a site to publish cars: Craigslist. It’s free and only takes a few minutes.
Where to find used cars?
These are the places where you could find good deals on used cars, according to Money Crashers:
- Public auctions. In general, these are cars that have been seized by the government. The good thing is that they are done regularly. There are also special auctions for sellers, where the prices are excellent, but you will need to obtain your license.
- Craigslist. Another great option: here you will not have too many problems to find good offers. However, you must take care of the scams.
- eBay. It is a more regulated version of Craigslist. The selection of cars is usually better, but it is more difficult to find good prices.
Other sites where you can find used cars are newspaper classifieds. You can also go around the city and look for cars with sale signs.
Other factors to consider
You must know the automotive market of your city. The reason? A good reseller does not stay long with the same car, but already has a plan in mind when you buy it, explains the aforementioned site.
Another important thing? Establish a budget for repairs. It is recommended to start with at least 1500 dollars.
If you are attracted to the automotive business, these tips will help you get started. However, remember that it is not as simple as it seems, and that experience is the best tool.