Flipping Cars For Profit
Car Flipping Business: Make Money Flipping Cars
Many people have launched their own home-based buy and sell car businesses.
To start buying and selling cars, you won’t need a large sum of money, you don’t need to be a dealer to sell the car, and you don’t have to hire a mechanic expert although that would be an advantage.
We’re going to review the idea of car flipping to see if it really is the best way to make money out there.
We’ll talk about whether flipping cars is right for you.
And at the end, I’ll answer some of the most frequently asked questions regarding the car flipping business in general
But most importantly, I’ll show you the exact system I used to build my own internet marketing business to over $40,000 a month in mostly passive income.
This system made me swear off the car flipping business for good, because it uses some of the same skills but in a much more powerful and profitable way!
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Table of Contents
Flipping Cars For Profit: Places Where You Can Buy a Cheap Car
Purchasing a low-cost vehicle is actually rather straightforward. Vehicles can be found in the following places:
- Automobile auctions in your region – auction cars are some of the best deals
- Craigslist for classified advertisements.
- eBay classified ads from newspapers
- Community bulletin boards posted at supermarkets
- Private cars with a “For Sale” sign
Cars To Flip: Do I Need A Dealer's License?
Flipping A Used Car For Profit:
In the car flipping business, the restrictions controlling how many autos you are allowed to sell every year vary by state, so you might need to do some research in your area.
In California, for instance, you are allowed to flip up to five cars per year, whereas in Indiana, you could be flipping a used car for profit up to 12 times per year before they require you to get a dealer’s license.
You can avoid this by visiting a licensed dealer and haggling with him to complete the paperwork on any vehicles that exceed the quota of the state where you’re in.
This will essentially set you back several hundreds of dollars, but if you make over $1k for each transaction, you’re well ahead of of your competition already.
Another alternative is to collaborate with family and acquaintances who have the same goal, so that before you’re required to have a dealership license, you may use their annual limit.
All states require auto sellers to register as dealers. Obtaining and maintaining a dealer license is a paper-intensive and time-consuming process.
It’s also very costly.
To be legit, you need to spend a minimum of $1,500 in certificate fees, bond guarantees, and other governance charges.
If you rent office space for your company, you could spend $1,000’s in monthly leasing fees or overhead.
Thankfully, smaller car flippers who are theoretically certified as traders can usually operate without the need to officially put up a store and not breach local regulations by obstructing their backyards and streets with extra automobiles.
Acquiring a Dealer Certificate is not difficult or time-consuming for casual flippers.
However, the business economy might work in your favor if you want the car to sell well enough to build a legitimate business from it.
The requirements differ from state to state.
In Vermont, you can choose to sell up to 12 car flips annually. These are cars that you don’t own but don’t need to register according to DMV.org.
Thresholds have lowered in various nations. Before continuing any further with your car flipping business, best to get in touch with your motor vehicle windows registration in your state to prevent civil or criminal penalties for promoting automobiles without the proper certification.
What Am I Looking For?
You can choose from dozens of automobile manufacturers, models, and styles. Therefore, this could be quite difficult for a newbie.
But over time, you’ll get more accustomed to it since it’s a personal preference.
The most straightforward way is to start with what you already know. If you’ve owned a Civic or a Malibu for quite sometime, you’ve probably learned a few things about them.
These should be the cars you’d start with.
You’ll be aware of the issues you’ve experienced, the maintenance methods, and the quirks that others are unaware of.
Take advantage of this when looking for a property and haggling over the price.
Feel free to explore once you’ve attained a certain level of comfort.
Public car auction deals are generally better than private party sale deals for car flippers because auction cars transact by volume and sellers typically don’t mind about receiving top dollar.
How Do I Determine The Right Price?
How do you determine a car’s true worth?
If you have traded in an automobile, you’ve probably heard of Black Book pricing or auction prices.
The average person doesn’t typically have access to these tools.
Auction and Black Book prices are roughly the amount a dealer is willing to pay for your automobile even if you’re not willing to buy one from them.
This is also how CarMax works, but they normally go a bit lower than the “auction” price.
This is the reason why you seem to always get scammed when trading in your car, especially if you conduct your research online.
Let me tell how you can use Kelly Blue Book to establish that value.
When you’re flipping cars for profit, this method isn’t perfect, but it’s close.
I’m pretty sure of this since I’ve done hundreds of car flips over the years.
Once you’ve decided on a car, go to Kelly Blue Book website and select “Check My Car’s Worth” button.
Next, key in the year, make, model, and mileage.
After which, you will be prompted to key in your zip code, car type (sedan, coupe, etc.), the condition, and the options.
Start filling up the fields accurately and select fair as the criteria.
Lastly, you’re shown a screen that displays your trade-in range and gives you a price.
You now have a starting point for how much you want to spend for the automobile since it’s the same price that dealerships would pay for.
However, although you already know the auction price, it does not imply you must buy at that price.
What you want to buy the car for is $500-$1,000 less than the reasonable trade-in value.
If you can’t sell the automobile for some reason, you could always take it to CarMax to at least break even or maybe earn even a few hundred dollars more than the price you’ve bought it for.
But, if you’re able to accomplish this with no hidden surprises, you could earn $1,000-$2,000 for every flip.
What To Avoid When Car Flipping
Be wary of the low-priced cars advertised on Craigslist, eBay, your community noticeboard, particularly Facebook.
I’m putting an emphasis on Facebook because it is rife with fraudulent activities, especially those that involve automobile purchases.
But, of course, look into a car that you are sure is being marketed at a low price; you might just get a legit offer too for the following reasons:
- The seller has no idea what it is worth.
- Due to debt or illness, the seller must sell immediately.
However, the most probable explanation is that the automobile has an issue, which the owner is likely to be aware of and which will be costly to repair.
How Do I Make The Purchase?
If everything appears to be in order and you feel confident continuing forward, go on to the paperwork. Ensure that the title is shown to you by the buyer and that the seller’s part is signed in front of you.
Ask for their ID to verify that they are the owner. If it’s already been signed, simply verify with the ID.
This is to be 100% sure that you’re buying from someone who titled the car.
Never buy a car if the name on the title isn’t the name of the person you are buying it from because you could put yourself at some legal risks.
Besides the title, the bill of sale needs to be signed by both parties. This is to allow you to drive it without a license plate and not get charged with breaking any law or fined by the cops in case they ask you to pull over.
How Do I Sell The Car?
Now that you’ve gotten a good deal on a good automobile, it’s time to make money off of it.
Fix It Up.
Needless to say, when there are less issues with the car, the entire transaction will run more smoothly. Thoroughly check on potential issues, listen to the engine, and repair as much as you can.
Fix loose trim bits. Repair the dome lights. Replace the headlight or taillight bulb.
Also, ensure that the key fob is operational. If not, it might be the battery.
Use DIY tutorials for a quick replacement of the battery.
Care To Clean It Up.
Clean both the exterior and the interior. Spend no money on detailing; just use a little elbow grease to remove all of the filth and food debris.
If the carpets are too nasty to clean, get some inexpensive carpet protectors from Walmart and place over the old ones.
You don’t need to turn it back to its pristine condition (though it wouldn’t hurt), but ensure that the visible damages or issues are addressed.
An air freshener is also beneficial.
Take Quality Pictures.
First impressions are everything, so your images of the car are of high quality and accurate.
There is no need to show them the flaws, but don’t conceal them either.
The buyer will check the vehicle in person, so if there is a large ding on a door, do not lie about it.
Don’t attempt to be sneaky and hide it either.
Take high quality photos of the car’s features
If the tires are brand new, show them off.
Make sure your images entice potential consumers.
Research The Listing Price.
Look at other similar automobiles for sale on Craigslist to get the average listing price for your vehicle.
If you wish to sell your automobile fast, list it at the low end of the market.
Don’t overprice unless you’re sure that it’s in mint condition.
For pricing comparison, use the year, mileage, and features as the primary criteria.
If you acquired the automobile for less than the auction price, you’ll make money even if you price it cheap.
Create The Listing On Craigslist Or Facebook Marketplace.
Include the following information in your description:
Be sure you display any service records and CarFax reports so that consumers feel confident with their purchase.
Display the high-quality photos and explain any issues. Attract buyers with your listing.
Don’t be scared to list your phone number.
When selling the car, the reverse of what you’ve done when buying the car is required.
Always attempt to get the buyer to see you in person when negotiating.
This is due to the fact that you want them to make decisions based on impulse or emotion.
Unless you have no other option, avoid negotiating over text or phone.
Be patient when bargaining; consider it a game.
Get Ready For The Sale.
After you’ve planned a visit with the buyer to take a look at your car in person, prepare everything in advance to ensure that the process is going to be as smooth as possible for the buyer.
Make sure you have the following with you: the keys, service documents, CarFax.
Don’t forget to bring towels and rags should the buyer requests to inspect the car.
Finally, prepare the bill of sale and the title.
Keep in mind that it’s important to make everything as simple as possible with the buyer.
Don’t come across as desperate, don’t cover up anything, and, most of all, be kind.
This will transform the sleazy picture that the majority of people have about buying a car, and believe me, it will go a long way.
Make The Sale.
If everything checks out, close the deal. Get paid, have the title and bill of sale signed by you and the buyer.
You’ve just made a good chunk of profit from one car flip!
Can you really flip cars for profit?
Other than flipping houses, car flipping is unquestionably a very lucrative business that you can venture into. It’s popular among college students who do it as a side hustle.
Cars priced between $1,500 and $4,000 can provide a $1,000-$2,000 profit. That’s a lot of money and a huge profit margin for just one flip. This is the reason why selling cars and car flipping is an attractive business.
Being a car flipper is a great option for making money.
But if a car flip is not your cup of tea or if it’s too expensive, then you should check out our #1 recommendation…
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Although it’s not real estate in the traditional sense, it’s all digital.
Where flipping and selling cars falls short is in scalability.
You can’t realistically expect to be able to flip and good amount of cars every day… because you are limited by time, and you’re always hustling for the next flip.
But what if you leverage it?
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Sound too good to be true?
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How do you get paid and how much?
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See why they call it digital real estate now?
That’s a rent payment.
The great thing is how easy it is to scale. You don’t have to answer the phone… all you have to do is get the phone to ring. car flip
Remember when I mentioned that you are always hustling when you flip or sell cars… looking for the next deal?
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Unlike car flipping, more people have been able to walk away from their 9-5 job as well.
Now, I know you probably have tons of questions…