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 Mr MMT to put in tons of hard work as in doing manual labor.
I’m excited to share my personal experience of how we made $365.50 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 is 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.
Our personal experience will give you hope. You don’t need to be a car mechanic or have specialized knowledge about cars.
I can safely say that it didn’t require lots of hard effort, but it did require a bit of time and patience.
We didn’t need to put in any elbow grease like doing minor DIY repair jobs or polishing the car.
How It All Started
Let me go back a little and explain how this car flipping hustle came about.
Last year, Mr MMT placed an online bid for a used car without my knowledge.
What a shock! Mr MMT is supposed to be a veteran frugalist!
It was just a very hopeful bid, as he didn’t expect to buy a used car in such an excellent condition for more than $2,000 below its market value.
To top it off, he didn’t even check out the car except for examining its full condition report.
It was being sold through an online auction by a well-known auction company.
As it turned out, the deal was so good that a staff member of this company couldn’t hide his envy at all when we contacted him about collecting the car.
And . . . It was love at first sight!
The car was not perfect, but it was in a very good condition for its age. And it had a verified mileage of just 22,000 miles.
Though Mr MMT’s original little car was an old faithful, we decided to keep the newly-bought beauty.
We sold the little old car a few days later. The money partially funded the “new” car.
In the end, we paid only about $1,600 more to get a bigger, safer, newer and better performing car.
Till this day, we’re grateful that this happened.
How This Experience Helps
With this happy experience, we knew that it is feasible to make extra cash from flipping cars.
This is because Mr MMT’s newly bought car could have made us a cool profit of $2,000, had he sold it.
The next car was also bought at another online auction. Its market value was about $526 more than the price we paid.
The small Toyota sedan sold in 6 days, and there were actually 3 interested parties.
Our Potential Buyers
The first potential buyer was an undergrad who came to view our car twice. Depending on who he came to see the car with, he’d vacillate and change his mind.
It was a ‘yes’ at first, but then a ‘no’ later.
Mr MMT had offered him a good deal, seeing that he’s a student, but in the end he listened to his friends and decided he needed more time to “think about it carefully”.
He didn’t buy the car – and we would have made much less had we sold it to him.
The second party was a mild looking chap with glasses who arrived with his teenage daughter.
But he did something which was not in line with his looks.
He revved the engine so hard, he woke up the whole neighbourhood in the early hours on the weekend. He continued his absurd act a few more times.
On hindsight, we should have been firm – we should have asked him to stop his nonsense.
Luckily, the engine was sound and nothing bad happened to it.
He was also extremely thorough in inspecting the car, but in the end did not even make an offer.
The third party, a young couple, bought the car. They were quiet and pleasant, and test drove and inspected the car carefully.
Our costs were low. We spent less than $33 to list the car on an auction site. The car insurance was free as we sold it in less than a month.
So how do you ensure success?
#1 How to save time?
Set up an online alert for certain types of cars, and monitor regularly.
This frees up your time and you get the latest notifications. We did miss a few cars that could have made us several hundreds each.
#2 What makes and models to sell?
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. Toyota makes 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.
#4 What is the condition?
Buy cars that are in a clean and tidy condition.
We didn’t have to clean the car, as the car company had beaten us to it.
All we had to do was to wipe the dashboard and clean up the cup holders.
#5 What price should you pay?
Check out the online prices online for the make and model you’re buying.
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.
We wouldn’t consider buying a pink car, as this would narrow the range of potential buyers.
This issue did come up. The pink car we found was a dream vehicle at an exceptional price, but we didn’t bite as we knew that the pool of potential buyers would be small.
You’ll get a feel for the price of the car after checking out several ones.
#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 and not missing:
Ideally, you can 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.
Mr MMT actually forgot to arrange the insurance and drove it merrily home.
The good thing we found out was that our car insurer would still have covered us if anything untoward happened.
#10 What about warranty?
We prefer to buy our cars from reputable car companies for this reason.
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 we bought the car from a licensed vehicle auctioneer/dealer, they had the legal obligation to make it right should we find that it needed fixing.
By the way, the car did not need fixing.
#11 Does timing matter?
Make use of the seasons to buy and sell successfully.
We realized that 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. You can see above how attractive the little red car we sold is 🙂
#15 How to build trust?
Be open and honest. Describe any faults or flaws of the car you’re selling.
This builds trust in the potential buyer.
For example, we bought our car from a reputable car dealer who was transparent about the cosmetic flaws in the car. They described the flaws accurately and had close up photos.
#16 What about paperwork?
Mr MMT prepared his own forms as a record of the transaction. The forms included information such as buyer’s and seller’s names, addresses, car particulars, drivers’ license numbers, dates, signatures and so on. Both parties signed and each kept an identical copy of the form.
All in all, the whole experience was interesting and we learnt lots from it. We also made $365 from flipping one car.
Use all these tips and I believe you’ll also make good money flipping cars.
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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