Stocks were the big thing in the 1990s and now “flipping” houses are big in the 2000s. Flipping in this case means buyinga property putting some money into it and selling it for a profit, usually a pretty big one. Buy previously owned cars, improving them and selling them might just be the next big money making idea.
The first step is to find out what your state requires of you for this venture. Most states call for you to have a dealer’s license if you buy and sell a certain amount of vehicles for profit within a certain amount of time. You can research the requirements online or go to your department of motor vehicles office to get this information. It is important to get the correct licenses, insurance policies, permits, and so on. Do not let the requirements scare you off. Once you fill out the correct paperwork you should be on your way to the next step.
What you do next is to find cars to purchase for under retail or “blue book” value so that you can make a profit. You need to start out with an idea of what type of vehicle sells well in your area. Find out what the best selling cars are nationwide and what is most popular in your area. Once you have an idea of what type of car you want to buy there are various ways to find the car you should buy.
Classified ads used to be just in local newspapers. But with technological advances you now can find these ads online using the Internet. With the Internet you can look for a certain make and model with little difficulty. Buying from a private party through a classified ad is one of the easiest ways to find a car for a good price.
Besides local newspaper classifieds being online there are other sites you can look for cars on. Two of the most used sites are Cars.comand Autotrader.com. These sites can be very helpful even for researching and comparing cars you are interested in. You can also search out of your local area if you want to buy from farther away.
Auctions - Now a day there are many types of auctions you can participate in. OnlineAuctions are getting bigger and bigger each year. The best known auto auction site online is probably EBay motors. If the car you want to bid on here is local you should be able to go and take a look at it before buying. If it is not local than be sure you ask questions and know the exact condition of the car and the transportation costs before bidding. Auctions with no reserve are probably your best bet with online auctions.
Public Auctions are also available for you to go to. These types of auctions are open to the general public so you do not need a dealer’s license. Public auctions might have a preview day for you to go and check out the quality and functionality of the vehicle or you might just need to show up a few hours early to find this out.
County, city and states have public auctions. So do school districts, police and sheriff departments. A lot of the vehicles available will be well maintained fleet cars. Other vehicles will be repossessed that might just need a little TLC to get them looking good again. Public auctions are worth a look at to find cars below book value.
Federal government auctions are basically like your local auctions except you might have to travel further to find them. Most all areas of the government have fleet vehicles that they sell annually. These cars are again usually well maintained and sold for a decent price.
Estate auctions are another type you might consider. These are usually found in your local paper and will list if any vehicles are being sold. If possible try to see the vehicle before the actual auction date.
Dealer’s auctions can be a great place to find vehicles for way below wholesale. As the name implies you will need your dealer’s license to purchase a car. The cars found at dealer auctions are mostly trade-ins, rentals or private companies old fleet vehicles.
When you find a vehicle that you believe would sell well in your area be sure to check it out. The worst thing you can do is buy a car that you will spend more money in repairs than you will make by selling it. You do not want a car with major bodywork problems. Minor problems that can be waxed or polished out are fine.
You do not want a vehicle with serious mechanical issues either. Vehicles that appear stout but need cleaned up are the best. If it is sound mechanically you can also put on a new paint job for cheap or better yet polish and wax the car. Make sure the tires are clean and attractive. Clean the interior. Buy new mats for the floorboards. If the engine is stout and the car looks clean you will make money when you sell the car.
Once you have the car looking its best it is time to sell it and make some money. Go about selling it the same way in which you bought it. Place an ad on an online classified site or your local newspaper. Try to include a picture that shows the best qualities of the car. Pictures are very popular online and can sell the vehicle without you even saying a word.
If you love cars why not start making some money out of buying and selling them?Do your research, find the right car, get the lowest price, fix it up a bit and resell it. Remember not to buy a car that needs too much money put back into it and don’t over do it by buying new tires or rims that the car does not need. You want to make what you put into the car and much more.
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