How To Make Money Buying Cars At Autioms

Despite its growing popularity, flipping houses isn't the only fashion to brand money fixing up undervalued assets. If you have the correct temperament and know-how, you lot can besides turn a profit flipping cars.

I've spent a lot of time learning how to successfully buy, fix, and sell old cars. In this guide, I'm going to outline the anatomy of a successful machine flip and provide an actionable game plan for handy amateurs wondering how to translate their passion into an income-earning side project. Forth the way, I'll provide tips and cautions that successful flippers take found useful and so that you don't needlessly stumble onto preventable pitfalls.

This guide is aimed at apprentice mechanics and handypeople seeking a dependable (only not take a chance-free) side income stream that'due south enjoyable to earn. It outlines:

How to legally flip cars
How to find undervalued cars in your surface area
How to buy the right cars
How to gear up up cars cheaply and quickly
How to become the most money for each fixed-up car

Read on to learn more almost flipping cars to earn extra income in your spare fourth dimension.

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Getting Started: Learn the Ropes & Discover Undervalued Cars to Buy

In theory, the underground to successful motorcar flipping is four words long: "buy low, sell loftier." In practice, it's more than complicated. Successful car flippers must:

Have basic familiarity with state and local automotive codes, including how long it's permissible to hold a auto without registration and when frequent sellers are required to obtain dealer licenses
Know where to find undervalued cars for sale and how to obtain them speedily and legally
Understand the local used car market

Get Correct With the Law

Showtime, and most chiefly, you need to go correct with the law past making sure you take an appropriate dealer license and see all of the requirements.

Dealer License Requirements
Every state requires prolific auto sellers to register as dealers. Applying for and maintaining a dealer license is a time-consuming, paperwork-laden affair. Information technology's plush too. Betwixt license fees, surety bond fees, and various regulatory expenses, y'all can await to spend at least $1,500 to get legal.

If you lease commercial space for your operation, you need to upkeep hundreds or thousands each month for hire or overhead. Fortunately, small-fourth dimension flippers who technically qualify as dealers tin can unremarkably skate by without formally setting upward shop, provided they don't violate local ordinances by clogging their yards and streets with extra cars.

Obtaining a dealer license isn't practical or sensible for casual flippers. However, if yous relish automobile flipping plenty to brand a legitimate side business out of it, the economic science may work in your favor.

Dealer license requirements vary past state. In Vermont, you tin sell upward to "12 vehicles per year that are owned but not registered past you" earlier you need to apply for a dealer license (per DMV.org). Some other states have lower thresholds. To avert civil or criminal penalties for selling cars without a dealer license, check with your land motor vehicle registry earlier going any further.

Find Undervalued Cars With Minimal Attempt

Adjacent, y'all need to know where to find undervalued cars and how to get your easily on them. Mutual options include:

Public Auctions: If y'all're not a licensed dealer, public auctions probably offer the about bang for your buck. (Dealer auctions, which have fewer buyers and, potentially, better deals, are open up only to licensed dealers.) Public sale inventory typically includes cars repossessed past lenders, seized by governments over unpaid taxes or other liens, forfeited by drivers charged with serious offenses, and abased in public rights-of-manner. In major metropolitan areas, public car auctions occur weekly or even more than frequently; fifty-fifty in less populous areas, governments typically sale off repossessed vehicles at least once per month. Individual companies are also in the public auction business – for instance, Manheim has a nationwide network of auto auction houses that cater to dealers and the public. Public sale deals are usually better than private party auction deals, since auction houses deal on volume and sellers usually don't intendance about getting top dollar.
Craigslist: If you're not comfortable with public auctions and don't mind paying a slight private party sale premium, Craigslist is your next best selection. It'due south complimentary to postal service classified sales ads on Craigslist, and the site doesn't have a cut of the selling price, so there's never a shortage of autos for auction there. And, thanks to high buyer volumes, Craigslist is the venue of choice for truly motivated sellers. You'll accept no trouble finding undervalued cars hither. However, the standard "heir-apparent beware" caveat applies – Craigslist is a truthful DIY platform, and when things go southward, y'all're pretty much on your own. Be sure to watch out for common Craigslist scams as well.
eBay: eBay Motors is an upmarket, better-regulated version of Craigslist. The selection is arguably even better than Craigslist at the middle and upper reaches of the market place, but lower-priced cars tend to go fast here. There's also a hefty fee for successful listings, so this isn't the place to observe ultra-motivated, 1-off sellers.
Newspaper Classifieds: Paper classifieds are now available in impress and online. If you're confining your motorcar search to your hometown, check your local paper's listings. Some onetime-fashioned sellers just list in the newspaper, so you'll likely find deals yous'd otherwise miss.
Effectually Town: With the rise of online auto sales platforms, "For Sale" signs in car windshields are increasingly uncommon. But they're not totally extinct. When you're out effectually boondocks, go along your eyes open for on-the-marketplace cars priced well below fair market place value. Anytime you see a price followed past "OBO" – "or best offering" – it's a sure sign of a motivated seller. Be ready to swoop in. Don't be afraid to strike up conversations with owners, or ask for permission to peek under the hood. Over time, you'll get improve at spotting motivated sellers. If you can make a deal on the spot, you'll avoid a lengthy dance leading up to the auction and lock in a not bad price earlier someone else does.
Paper Postings: Posted ads are another dying-but-not-quite-expressionless choice. Like windshield signs, customs board postings are favored by motivated sellers who desire to become their listings out to as many proximate buyers as possible. Get in the addiction of scanning boards wherever you find them and grabbing whatsoever numbers that suit your fancy.

Pro Tip: Don't bother looking for bargains at used car dealerships. Dealers' advertised prices allow for healthy margins, even on negotiated sales. At the lower end of the used automobile market, sticker prices tin hands run 2 or even three times individual party value. Case in point: In 2016, a local dealer's used automobile heir-apparent offered me $1,500 greenbacks for a high-mileage, decade-quondam American midsize sedan. He so told me he'd annunciate the auto at $iii,500 to $4,000, to all but guarantee a turn a profit of at least $ane,500. I appreciated the transparency, but the experience permanently soured me on the dealer economy.

Know Your Used Car Marketplace

A good car flipper never buys without a clear endgame. The sooner you go your current flip off your hands, the sooner yous can start the next flip – or use the profits to pad your personal savings.

In almost places, the most "flippable" cars are low-mileage, efficient sedans, wagons, and compact SUVs from mass-market makes, such as Ford, Chevrolet, Toyota, and Honda. Because they're known quantities, these vehicles have no shortage of prospective buyers.

If you live in an affluent area, information technology may exist worth your while to seek out undervalued luxury cars and rarer versions of mass-market models. Since they're harder to find, buyers are often willing to pay a premium for them. However, you need to make certain your marketplace has plenty buyers who can beget – or intendance enough to pay actress for – such cars.

As well, your area's geography and climate may create niche opportunities not available to everyone else. In a snowy, mountainous area, you'll have lots of four-wheel-drive cars to choose from – and lots of buyers willing to pay practiced money for them. In mild climates, you'll likely clean up with convertibles.

Be wary of "curveball" cars with unusual features that simply seem highly-seasoned. For case, many buyers don't want or demand aftermarket exhaust systems or ostentatious spoilers. Fifty-fifty features that once added appeal, such as manual transmissions, are at present albatrosses in sure segments of the motorcar market.

"Make sure you are familiar with your potential buyers' wants and needs earlier yous invest in a vehicle that will be tough to sell," says Tristan Jones, owner of Phoenix-based Mobile Car Dr. Translation: Getting less than you lot want for your flip is tough; getting saddled with a flip that y'all can't sell is much worse.

Buying: Checklist and Procedures

Whether yous're buying at a public auction, contacting Craigslist posters, or cruising around boondocks looking for motivated sellers, follow these procedures to lock in a great price with minimal effort.

ane. Prepare Your Buying Budget

As with whatsoever big buy, you demand to prepare a upkeep for your flip. Seasoned flippers recommend starting with at to the lowest degree $one,500 – enough for a serviceable auction motorcar with moderate to high mileage and several years of service under its belt, ready to fetch perchance $500 to $800 afterward expenses. Higher budgets mean higher profits, within reason: Many flippers caution confronting spending more $5,000 to buy a flip, as the sphere of all-cash buyers gets smaller equally you move up the toll scale.

2. Get Greenbacks

Before you outset buying, you lot probably need to scrounge upward greenbacks to match your budget. I say "probably" because many public auctions accept major credit cards. Still, unless you're running a residue on a low Apr credit card, you'll need the cash presently enough to pay your pecker.

If this is your first flip, consider setting aside some extra cash – perhaps half your buying budget. That'll come in handy on your 2d flip, after you've learned the ropes on a burner auto and you're ready to spend more for a healthier profit margin.

3. Ascertain Fair Market Value

The key to finding great deals on undervalued cars is preparation – and lots of it. Before you striking the auction, utilise KBB or Edmunds to ascertain off-white market place private political party sales figures for common make, model, trim, and twelvemonth combinations.

This isn't as overwhelming equally it sounds: Virtually public auctions make inventory public in advance of the large day, so you'll have time to exercise your homework, zilch in on promising deals, and figure out what they're worth in a private party sale. (By way of example, hither's what Manheim's public auction listings look similar.)

If yous're using Craigslist or some other online source, you can enquiry at your leisure, pausing to look upward the resale value whenever you see a automobile that strikes your fancy.

You'll utilize this fair market value information to find undervalued cars that promise healthy profits – though you lot'll need to follow the rest of these tips to avert selecting a flip that only seems undervalued.

4. Know How to Buy

If you don't know how to play, don't get in the sandbox.

Earlier you hit the sale lot, thoroughly review its rules and procedures. These tin can be pretty detailed – my local impound lot in Minneapolis has a 14-betoken rulebook that includes a slew of atmospheric condition and bureaucratic niceties, including the "when" and "how" of pre-sale car inspections. If you're not familiar with the process, you'll be steamrolled by more experienced auction-goers or, worse, unwittingly disqualified from the event.

Yous also demand to know how to legally transfer championship and annals your automobile. If you lot buy at auction, the lot will have care of this, but it'southward a critical consideration for private party sales. Transfer and registration procedures vary somewhat by state. When in doubt, consult your local motor vehicle registry earlier proceeding.

five. Visually Inspect the Interior

Once you're face to face up with a promising car, get busy checking it for defects. Commencement past visually inspecting the interior for damaged floor, upholstery, safety features, and instrumentation. Don't worry likewise much virtually trash and personal possessions: You can make clean out the former, and the auction lot or private seller volition take care of the latter.

If you're allowed to enter the car or fifty-fifty ringlet down the windows, check for unpleasant odors, such as rotting food or stale smoke. Odors tin be neutralized with actress piece of work – and expense – but that effort might not be worth it on a low-margin flip.

6. Visually Inspect the Exterior

Adjacent, visually inspect the exterior. Is the car dirty? Moisture your finger and run it forth the side of the motorcar. If you're able to wipe off dirt with a single laissez passer or a more vigorous scrub, the vehicle will likely look a lot improve once it's washed. Muddied isn't necessarily bad – and it may scare off less savvy auction buyers.

Thoroughly inspect for more serious imperfections: deep scratches, dings, dents, and rust (which normally appears along the wheel wells unless the car is in an advanced land of busted). Depending on the motorcar'southward resale value and your platonic buyer, you may demand to invest substantial sums to repair these issues before yous sell.

7. Pop the Hood

After you've looked inside and out, pop the hood. Co-ordinate to Jones, the engine compartment'due south general advent is a key tell.

"Cars with dirtier engine compartments tend to need more piece of work," he says. In other words, dingy engine compartments don't bode well for your margins.

At a private party auction, y'all'll have plenty of fourth dimension to cheque the car's vitals. (Let the seller know y'all plan to do this beforehand. If they go antsy on the day of, that's a potential blood-red flag.)

At an auction, you'll be much more rushed and face much more competition. Nevertheless, yous'll want to check as much every bit possible of the following for any used car warning signs:

Engine Oil: Check oil levels and colour. Ideally, the level would exist within the acceptable range and the color would exist relatively light, just neither is a bargain-breaker – it's quick and inexpensive to change the oil once you've taken possession of the car. Leakage is a bigger, costlier upshot.
Radiator: The radiator'south h2o supply should maintain a normal temperature with no air bubbles or leakage. If the car overheats after a few minutes of operation or leaks h2o while running, it'south going to demand repairs – the question is what kind, and how much they'll toll. If you're not a motorcar expert, think carefully earlier you purchase.
Belts: With the engine turned off, carefully audit the belts. Visible signs of clothing, such as fraying or thinning, will need to be addressed before you sell. Co-ordinate to Angie's List, yous tin can await to pay at least $500 to replace a timing belt – a substantial hit to your profit margin.
Radiator Hose: Echo this procedure for the radiator hose. This part isn't quite as expensive as the timing belt, only information technology'southward not cheap. According to RepairPal, a radiator hose replacement tin can cost upwards of $200.
Transmission: Most sale lots don't allow prospective buyers to drive cars during the inspection period. However, most private party sellers are fine with information technology (and if your seller isn't, walk abroad). If you can take the car for a spin, pay close attention to the transmission's performance. In an automatic transmission, a noticeable gap betwixt shifting and engagement signals significant wearable. A gap of longer than one to two seconds is worrisome – the transmission might not be long for this world.
Brakes: Another exam bulldoze to-exercise: restriction checks. Build upward a good corporeality of speed, make certain the road is dry and articulate, warn any passengers that you're most to cease suddenly, and then engage the restriction forcefully. You're looking for a smoothen, rapid, straight-line stop. Shaky, kleptomaniacal, or worn-out brakes demand replacement – not a deal-billow, but a definite margin-eater.

8. Inquire How Long It's Been Sitting

This is another question that tin help you avoid a value trap.

"I've constitute that when a car sits for too long, things tend to interruption shortly subsequently it gets running again," says Jones. "Be prepared to fix more than you might accept expected," peculiarly if y'all're ownership older, underused cars.

In other words, low mileage doesn't mean low maintenance.

9. Run a VIN Check

If yous're buying in a private political party auction, run its Vehicle Identification Number (VIN) with the National Insurance Crime Bureau and SaferCar.gov. Both are free. The former has accurate, up-to-date data about car theft, and can tell you whether the car was legally obtained past the current owner. The latter, a service of the National Highway Transportation Rubber Administration, can tell yous whether "a specific vehicle [e.g., the car yous're trying to buy] has not been repaired as function of a safety recall in the last 15 years." You can too pay for a vehicle history report at Carfax, which shows changes in ownership or title, and any previous accidents.

10. Negotiate a Final Cost (or Simply Bid)

Once you've done thorough due diligence, cut to the chase.

If you're buying at auction, bid on the car when it comes upwards. Remain unemotional: The quickest way to destroy your margins is to go into a bidding war that pushes the sale price by your top dollar. If other bidders want the car more, let them have information technology. There are plenty more on the lot, no doubtfulness.

In a individual party sale, attempt to drive the seller downwardly to their bottom dollar (or beneath). This is where knowing how to spot motivated sellers comes in handy, even without a clear giveaway like "OBO" in the listing. Inquire the seller why they're parting with the car. If you're lucky, they'll reveal (probably indirectly) that they're trying to raise money or need to sell fast in advance of a long-distance move – sure signs that they're willing to budge on price.

While it's harder to walk abroad from a private deal when you're face to face with the seller, the same "unemotional" logic applies here: It'due south better to abandon a transaction in progress than to go stuck with a bad deal. You'll observe a better flip.

eleven. Thoroughly Clean the Auto Inside and Out

Though technically not part of the buying procedure, cleaning the car is a non-negotiable step for anyone looking to maximize their post-flip profit. Since they're sold equally-is, auction cars require special attention. You'll want to:

Remove any trash from the interior
Remove, bang out, and vacuum floor mats
Vacuum every inch of the interior
Clean visible upholstery stains, within reason
Dust interior surfaces, including moldings and instrumentation, with a damp cloth
Make clean window interiors with glass cleaner
Buff out minor paint scratches and chips
Go through a auto wash

If the car is actually trashed or you just don't accept time to do a thorough job, consider an auto detailing service. Y'all'll need to budget $150 to $300 for this, simply the fourth dimension and hassle saved may be worthwhile on higher-value vehicles.

Fixing: Salvage Fourth dimension and Coin Without Sacrificing Workmanship

You've bought your motorcar, warts and all. Now it's time to meet how unsightly those warts really are – and fix them at a reasonable cost.

Diagnose Mechanical Issues

Different home buyers, used car buyers can't commission the equivalent of a dwelling inspection to find out exactly what's incorrect with their new rides – especially if they're buying at auction, where speed and volume are the names of the game. But yous can't continue with your flip until you lot know what needs to happen to brand the motorcar attractive to prospective buyers – and how much it'll toll.

If you're non mechanically inclined, y'all'll need a reliable, price-effective means of diagnosing potential problems with your newly acquired ride.

Inquiry Your Symptoms
Earlier you take the vehicle to a mechanic, become a sense of what you might be upward against. Heading direct to the repair store is a surefire way to pay for repairs you don't need, especially as a novice who doesn't know a brawl bearing from a carburetor. As you gain experience and confidence, you'll find it easier to detect mechanics' bluster.

Googling the symptoms is a offset, merely filtering out overtly advertorial and cocky-interested information sources is a job. Instead, consider navigating directly to purpose-congenital machine repair sites, similar RepairPal. RepairPal has a symptom checker that'due south useful for nonexperts seeking to diagnose mutual machine problems – though information technology's not foolproof and isn't a substitute for adept advice.

Y'all can also purchase a car diagnostic tool that plugs into the car directly and identifies whatever potential problems. This tin give you a expert starting bespeak to amend sympathise the bug and avoid getting swindled by mechanics.

Larn More for the Long Haul
For procedural overviews of specific repair projects, search YouTube for highly rated how-to videos. While you shouldn't endeavour complicated repairs at domicile without proper equipment, you can at least acquire how to spot mutual problems with a peek under the hood or bulldoze around the block and get a sense of what'southward involved in the repair process.

In that location's no substitute for firsthand noesis. If you savor your outset flip, get gear up for the side by side by devoting a few hours per calendar week to reading upward on automotive systems and common auto repair jobs. You lot can find this information for free on websites similar How Stuff Works , or in book class at your local library.

Guess Repair Costs and Prepare a Budget

Once you know what yous're dealing with, estimate your repair costs and prepare a strict budget for the whole task. RepairPal has a repair cost reckoner that provides gauge repair costs for specific makes and models in whatsoever U.S. Cipher lawmaking.

Set Your Repair Budget
Your actual repair budget will depend on these fundamental factors:

What's Wrong With the Car. This is the master determinant of your flip'due south repair costs, and why it's then important to thoroughly inspect vehicles before you buy. Bigger bug hateful bigger repair bills.
Your Target Margin. After expenses, how much practice you lot want to make on your flip? You lot obviously know how much you spent to purchase the car, and based on your prepurchase marketplace enquiry, you take a good sense of what it'll fetch in a private sale. Find the departure between those two figures, and then subtract your target profit margin. That terminal number is your height repair dollar – y'all tin can't spend more without accepting a below-target margin.
The Vehicle Make and Model. Vehicle repair and maintenance costs vary widely by make and model. According to Your Mechanic, European luxury brands (BMW, Mercedes-Benz, Audi) cost far more than to maintain than economical imports (Toyota, Honda, Hyundai). Over 10 years, BMWs toll about $12,000 more to maintain than Toyotas. Y'all won't have your luxury flip nearly as long, but due to higher costs for parts and labor, you tin can still expect to pay a hefty premium for whatsoever repair or maintenance work that it does happen to need.
Prevailing Repair Costs in Your Expanse. Auto repair costs vary by location. In affluent areas and expensive coastal cities, everything is a bit more expensive, including automobile piece of work. In pocket-size towns and remote regions, where qualified mechanics are few and far betwixt, those who remain can accuse more than for their services. It may be worth your while to venture farther afield for affordable repair and maintenance work or get DIY, though you lot'll take to weigh the savings against the added time and coin lost to the longer journey.

Become Repair Quotes and Choose Your Shop
After you've set your budget, research highly rated repair shops in your surface area. Source complimentary repair quotes from iii or four.

If your vehicle needs electronic diagnostics – for instance, the Check Engine light is on and you tin can't ascertain the trouble on your own – you'll need to pay out of pocket, usually in the $50 to $75 range. Cut costs past running an electronic diagnosis at one repair shop only or by buying a car diagnostic tool for around $xx-30 and running tests yourself. The reply should always be the same.

One time you have all your quotes and (if applicable) your electronic diagnostics study in hand, choose the lowest-priced option unless there's a compelling reason to get higher – perhaps yous got a bad feeling from the cheapest mechanic, or yous need to list your vehicle ASAP and are willing to pay a premium for faster service.

Pro Tip: Avert nonessential repairs that don't direct add to your vehicle's resale value. Unnecessary bells and whistles, like a souped-up stereo organisation or fancy exhaust assembly, shrink your puddle of potential buyers without increasing your eventual payoff. For coincidental flippers, the effort required to find buyers seeking aftermarket add-ons isn't worth the premium they might be willing to pay.

Selling: Where, When, and How

Once you've cleaned up your machine and addressed any pressing mechanical or maintenance problems, it's fourth dimension to price, list, and sell your car – in that club.

Price Your Machine

Offset, ready a fair listing price for your flip, plus a "lesser dollar" – the lowest figure y'all'll have under any circumstances.

Figure Out What It'due south Worth
Use at least two car pricing tools to ascertain your flip's fair market value for private sales. KBB and Edmunds are most flippers' go-to tools. Be brutally honest about your auto'south condition, and exist sure y'all're finding values for your habitation ZIP code. Minor variations in geography or condition can have big impacts on your final sale price, for better or worse.

Set Your Bottom Dollar
Side by side, set your bottom dollar. In auctioneering terms, this is your reserve price – the fail-safe that guarantees an acceptable profit. It should be no more than than 10% below fair market value for your flip'south brand, model, and condition. If you're open to negotiating with buyers, your bottom dollar ensures that you lot don't go carried away and become too low – a common problem for motivated sellers without much flipping experience.

List Your Machine

Side by side, detect the right venue for your flip and create a compelling listing.

Find the Right Venue
Craigslist isn't always the best selection for a quick, profitable flip. Specialized or loftier-end cars often languish on Craigslist race-to-the-bottom boards.

Tristan Jones recalls a frustrating experience with an in-demand luxury car that looked keen on paper: a 1998 BMW M3 convertible. After trying and failing to sell the car online, he realized he wasn't reaching the right pool of prospective buyers.

"I thought this would be an easy one to sell after I got it fixed, but the buyers I was finding on Craigslist shied away for two reasons: one, considering it was a convertible, and two, because it was an automatic," he says. "I think information technology would have been an easier sell at a small dealer, where the clients are unlike than the typical Craigslist buyer."

Before yous create your list, conduct a thorough search for similar vehicles listed for private political party sale in your area. Where are they listed? Who's selling them? What features or characteristics exercise their listings highlight?

You lot don't have to put all your eggs in one basket. Craigslist is free, then why not pair a Craigslist posting with a window sign or community board flyer? Alternatively, if you can find a high-visibility lot that allows costless long-term parking, consider leaving your flip there for long periods with a conspicuous sign.

As you look for the appropriate venue, recall about your platonic buyer. Are they a college student? A discerning professional person? A parent with multiple children? Place your online and in-person ads appropriately – on college campuses for student-friendly cars, upscale java shops for professionals, and the local YMCA or community eye for harried parents.

Pro Tip: But equally you shouldn't wait for bargain buys at the dealer, you shouldn't look your automobile to fetch peak dollar from the dealer either. Dealers typically pay 20% to xxx% less than individual political party value – an unacceptable haircut for anyone looking to maximize their flip's profit.

Create Your Listing
Every bit yous create your listing, never forget: A good auto sells itself. Leave the sales-y, aggressive language to the professional person dealers – they have plenty credulous buyers to keep them busy.

A good list has as many pictures as the format allows. If y'all're posting on Craigslist, take photos of the vehicle from all four directions, taking intendance to blur the license plate and any other identifying information. If you're posting on a lath effectually town, include at to the lowest degree one loftier-quality motion-picture show.

Spell out the car's basic characteristics, such equally manual type. Highlight any notable features similar a sunroof or optional third row. And describe its condition in general terms – practiced, very proficient, splendid – along with any major mechanical bug that the heir-apparent won't miss.

If you're list on a board, you need to give out personal contact information – at least your email, and preferably your phone number also. On Craigslist, you take the option to piece of work through an anonymous messaging system. However, you're likely to close the auction faster if y'all requite out your digits.

Deal With Buyers and Close the Auction

If your car is priced right and listed in the right places, you should start hearing from interested parties soon. Hither's how to deal with them.

Verify Payment
In the world of private political party car sales, cash is king. Before y'all meet your buyer, verify that they're paying with cash or a banking company check. Don't take personal checks from anyone you don't know unless they're willing to permit yous proceed the title until the check clears – which isn't likely.

Vet and See Buyers
After verifying that the heir-apparent plans to pay with greenbacks, conversation them upwardly a bit. The goal hither is to confirm that they're serious nearly buying, not simply boot tires or (less likely) setting you upward for a robbery or scam. Ask them about their plans for the car – are they buying for a high schoolhouse or college educatee, adding a commuter motorcar to the household, trading upwards or down from their current vehicle, or something else? Nearly buyers are happy to oblige.

If you lot're comfy with the heir-apparent, set upward a time and place to meet. Public places are ideal: church or schoolhouse parking lots, highway waysides, office parks. For safety'south sake, tell at least one other person where you're going and when.

Before moving forward with the sale, briefly chat with the buyer once more about their intentions. If they seem reticent to reveal basic details well-nigh themselves or their designs for the car, or if their story has changed in cardinal respects from your initial phone chat, utilize your best judgment almost whether to proceed. Call up, this isn't the only person in the world who wants this car. You can always find another buyer.

Negotiate (Or Not)
Amid seasoned car flippers, negotiation is a surprisingly controversial topic. Flippers are of two minds: Some actively invite their buyers to negotiate, while others flatly refuse to engage with negotiators.

If you're okay with negotiation, toll your car on the loftier side: 10% to 15% above fair market value for individual party sales. Smart buyers will endeavour to talk you down, but that'south fine, as you have enough of wiggle room congenital into your price. Fans of negotiation argue that most buyers like to feel as if they're getting a good deal, and are therefore less likely to drive hard bargains on slightly overpriced cars. Instead, they'll piece of work sellers down to fair market value and call it skilful.

If you prefer not to negotiate and you're not in a hurry to sell, cost your car lower – at or just below fair market value. Eventually, someone will probably bite. And, if not, you lot can ever lower your asking price closer to your lesser dollar. You'll still take home a tidy profit, and your buyer will have gotten a corking deal.

Final Give-and-take

If it wasn't already articulate, flipping cars for profit is tough work. If you're seeking opportunities to earn side income with lilliputian to no endeavor, check out our splendid piece on the best passive income stream ideas. In that location, you'll observe truly hands-off ideas that promise steady payoffs over time – sometimes years or decades in the hereafter.

On the other hand, if you love the thought of (literally) getting your hands muddy, flipping used cars might be the right "active income" pursuit for yous. Requite it a try and let united states of america know how it goes.

Take yous ever tried car flipping?

Source: https://www.moneycrashers.com/make-money-flipping-cars-fix-sell-profit/

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