There are many ways to make money, but flipping items is one of the more straightforward and doable options.
Would you like to make several hundred dollars or more to increase your income, pay down your debts, and better meet high living costs?
Car flipping didn’t require my friend to put in tons of hard work as in doing manual labor.
I’m excited to share how he made more than $350 in 6 days flipping a car.
Before you say, “I know nothing about cars, so this is not an option for me”, you may change your mind after reading this.
This can be a perfectly viable way for you to make money.
Can you make money flipping cars?
If you’re looking to make hundreds or even thousands each time, then you may want to give this a go.
You don’t need to be a car mechanic or have specialized knowledge about cars.
According to my friend, it didn’t require lots of hard effort, but it did require a bit of time and patience.
He didn’t need to put in any elbow grease like doing minor DIY repair jobs or polishing the car.
My Friend’s Experience
He bought a car at an online auction. Its market value was about $526 more than the price he paid.
The small sedan sold in 6 days, and he told me there were actually 3 interested parties. The third party, a quiet couple, bought it after a careful inspection.
Intrigued by this side hustle, I asked my friend for his success tips, which he generously shared.
#1 How did you save time?
Set up an online alert for certain types of cars on websites like Craigslist, and monitor regularly.
This frees up your time and you get the latest notifications.
#2 What makes and models offer the best potential?
Select only very popular makes and models – cars that you see a lot of on the roads.
Make sure they have a reputation of being reliable. Popular models of Toyota and Honda vehicles make the grade.
#3 Who do you buy from?
Buy from reputable used car dealers/companies.
They may be auction companies or car traders selling their trade-ins.
If you have good knowledge of how to inspect cars and determine their condition, buying from private sellers is OK too.
#4 What condition should the cars be?
Buy cars that are in a clean and tidy condition.
He didn’t have to clean the car, as the car company had beaten him to it.
All he had to do was to wipe the dashboard and clean up the cup holders.
But having said the above, it’s not always the case that you can buy a vehicle in a presentable condition. Does this mean the end of the road for making money?
Nope! You can simply look for a car that drives well and has been maintained. How? A few simple checks will tell you a lot about a car’s condition. For example, if the motor oil is black and dirty, or if its level is low, it tells you that its previous owner neglected it.
A car in good condition just needs to go through a car wash machine and get some interior vacuuming and wiping. A little bit of elbow grease goes a long way – the car will look good and attract buyers.
How long will this take? Between one and two hours, depending on how fast you work. This is a good opportunity to get your family to help out – it teaches the value of doing some physical work.
#5 What price should you pay?
Check out the online prices online for the make and model you’re buying. If buying at an auction, it’s important to do the math carefully and set the maximum price you’re willing to bid. This will assure you of a reasonable profit when you flip the vehicle.
If you buy well, you’ll make a good profit when you buy, as you can then sell it for a better price.
#6 Do colors really matter?
Popular colors for cars are white and silver.
He would never consider buying a pink car, as this would narrow the range of potential buyers.
#7 What must you look out for?
Always ask for and check out the car condition reports.
Examine the reports and check that the car is in a reasonably good condition, and doesn’t have an overly high mileage for its age.
#8 Is there anything missing?
Make sure these things are included :
Ideally, you should try to get hold of some service records, even if they are sparse. This is because they show prospective buyers that the car has been cared for to some degree.
#9 What about insurance?
Arrange for insurance cover as soon as you buy the car.
#10 What about warranty?
Buy cars from reputable car companies.
You can exercise your purchaser rights when the car is under warranty.
Find out what your state laws say about how long used cars from dealerships are guaranteed for. If you have any problems, you need to get the seller to fix them ASAP.
As my friend bought his car from a licensed vehicle auctioneer/dealer, they had the legal obligation to make it right should it need fixing, which it didn’t.
#11 Does timing matter?
Make use of the seasons to buy and sell successfully.
Cars tend to sell quickly in fall and winter, for obvious reasons. But then it’s also harder to bid for great value cars during these seasons.
You may need to buy your cars during summer, when competition isn’t as stiff for used cars.
#12 How do you protect the car you’re selling?
Make sure you check the potential buyer’s car licence, before you allow them to test drive your car.
Remember, there is no insurance cover should an unlicensed drive get involved in an accident!
#13 What other precautions must you take?
You must take steps to ensure the safety of your car when potential buyers request for test drives.
It is best that you (and a friend or another family member if it makes you feel safer) accompany the potential buyers during test drives.
#14 How to market your car well?
Take excellent photos of the car when it’s bright and sunny. Take photos of the car from different angles, including close ups of desirable features like cruise control. Remember – most buyers are influenced by what they see. A clean and nice looking car is seen as a good and well maintained one.
#15 How to build trust?
Be open and honest. Describe any faults or flaws of the car you’re selling. Show pictures of any obvious cosmetic flaws.
This builds trust in the potential buyer. And trust is everything when you’re selling.
#16 What about paperwork?
You can prepare your own forms as a record of the transaction. The forms should include information such as buyer’s and seller’s names, addresses, car particulars, drivers’ license numbers, dates, signatures and so on. Both parties should sign both forms and keep an identical copy of the form.
Different states may need different paperwork to be done to conduct a sale and purchase. Do find out beforehand and be familiar and well prepared.
If you’re looking to make some money, you may like to consider this side hustle.
Make sure that what you’re doing is in line with your state and federal laws. It pays to check the rules and regulations relating to flipping used cars. For example, how many cars can you flip a year without having a dealer’s license?
Put the title in your own name. Never try to sell a car in another person’s name.
You’ll need to report your profit as part of your income tax.
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