So you want to learn how to flip cars for profit, Lets dive in.
Flipping cars is the buying of cars at a very low price then investing in it through pimping it up which adds it’s value, then later selling it at a profit. It’s basically buying a car at a low price and selling it at a high price.
For you to achieve the sale you want, you have to first make sure you identify the car you want, having in mind that luxurious cars may take some time to sell while common cars have lots of customers hence it’s easier to make the desired sales.
When choosing a car, it’s good, to begin with, small amounts so as to mitigate any risks. Cars that look beat and undesirable are good since with the right kind of makeover they end up bringing a higher profit margin.
HOUR 1 – FINDING AND BUYING
When looking for a car, Craigslist is one of the places to get the best deals, especially for beginners. Always look for the most recent posts especially since people often leave their contact details attached. To be always updated, one can get Google alerts to notify you of any Craigslist postings.
They do so by sending you an email once a new ad is posted. You can always also post an ad stating the kind of car you require making it easier for people to get in contact with you.
Always Inspect the Car Before You Buy
Once you identify the car you want, it is always advisable to inspect the car before you buy it. It’s good to find out the various issues it has, how it functions and the various legal requirements. You do not want to end up with a stolen car. When it comes to issues like mileage and transmission, it’s important to thoroughly check the car for a car with a mileage of over 150,000 miles may be useless to buy.
Cars with dead batteries, however, may be advantageous to buy since it can help bring down the buying price. It’s also not expensive to replace a dead battery which may end up boosting your selling price.
In the following video, you can learn the esiest way to search for cars on Craiglist:
Hour 2 – Now You Have to Begin the Makeover Process. Making the Car Ready to Sell.
First, you do your budgeting by checking the price needed to fix and boost the cars outlook.
You then hire a mechanic or fix the car yourself if you know the way around it.
Check the interior and transform it if it appears to beat. You can do this by changing items like the car seats, mats, and the sound system. The small changes in a car may end up making most of the difference.
Fix the headlights whereby you change cloudy headlights and replace them with new ones. You can even change their design. This makes a lot of difference on how the car looks.
Important things to remember:
- Clean cars sell much faster so don’t skip the step of cleaning the car, it can make a huge impact on the buyer’s impression.Who wants to pay a high price for a dirty car.
- What about pricing the car – I usually price the car over KBB private party value, this gives you a little room for negotiation.This way the buyers will feel that they have made a great deal.
Hour 3 – After pimping up the car, you are now set for selling.
You first evaluate your numbers considering how much you bought the car and the amounts used for repairs. You have to then come up with a selling price that also gives you profits. The amounts have to be reasonable enough that upon posting an ad on Craigslist, you can get a customer in less than three hours.
To get customers, one can post the ad on Craigslist showing a picture of the car. It’s also important to post all the enticing features of the car such as mileage, transmission, headlights, interior design etc. Avoid posting any information that may end up discrediting your ad. First impressions are always important when a customer is going to your ad. It’s also good to regularly update your ad since people are mostly interested in the ads on the first pages. You also have to post an ad that is more enticing than that of your competitors.
After a customer shows interest, always ensure you avail yourself with the various documentation during the meet. Also, have better bargaining power than the customer so that the buyer lands at the price margin you have set.
These are my favorite places to sell your car completely free:
- Flipping cars on Craiglist – In my opinion, Craiglist is the best and the fastest way to sell your car.
- Offer UP – They have a website and smartphone application.It looks like Craiglist but it is much easier to stand out from other sellers.
Important things to remember regarding the selling process:
- Don’t try to be a salesperson but rather a good marketer.The only thing I am trying to do is to make the cars easy to buy.A lot of buyers will choose to buy a vehicle from a private person rather than a dealer due to they want to avoid the high pressure of the selling process.
- Finalizing the Sale – Make sure that you have received the money before you sing the ownership documents to the buyer.It is always a good idea to be familiar with your country states regulations on car transfers.
Once the sale is completed and you have the cash in your hands you can go ahead and look for another car to flip.