How to Flip Cars for Profit

Flipping cars is about finding a used car, repairs and re-selling. To get good value for the car you need to work on the aesthetics, engine and other components.

The challenge is spending as little as possible to achieve a desirable outcome. The business is highly profitable and you stand to make huge profit.

A sole proprietor or individual is capable of flipping 15 cars a year. Before starting the venture you need to understand the business.

In some countries flipping cars is illegal without a dealer’s license. However there are no such restrictions in others.

Flipping Cars Legally

Auto dealership classification is determined by the number of cars sold in a year. If you sell only a few cars yearly you don’t need a trade license.

To sell cars legitimately you need a dealer’s license and the number sold yearly differs from one region to the next. Find out your state laws before starting your auto business.

 It is recommended that you change the title to your own name after purchase. This confers true ownership and gives the new buyer confidence. Avoid any illegality such as open title arrangements.

Things to know about Flipping Cars

• Buy low Sell high
• Invest minimum amount of time possible
• Have a budget
• Study the states legal requirements
• Master the art of negotiating
• Study used car prices
• Stay way from specialty cars
• Make sure the car engine and transmission works

How to Flip Cars for Profit

Determine Your Budget

It is important to determine how much you are willing to spend. Make sure your seed money is allocated entirely to flipping cars.

Avoid going over budget or using home funds. The amount you budget for the business depends on your funds.

A mid-range used car could be purchased at $500-$2000. Once you have a figure put aside some for repairs.

Find the Car

The easiest places to find cars are auction websites. Another good place is on classified websites such as olx.com.

Try Craigslist and websites such as jiji. Other viable sources for cars are mechanic workshops, scrap yards and used car sales outlets.

Purchase cars from neighbors, friends and acquaintances. Specialty cars are harder to flip but attract huge profit.

If you want quick turnover buy popular min-range brands. Rural areas offer better deals on automobile prices than in the city. Once you’ve found the ideal car send owner an email or text message. 

There would be times your deal isn't that good and you are stuck with a car. Don't despair just scrap it and recoup your cost including a little profit.

Inspect the Car

Vehicle inspection is about the most important aspect of the business. Used cars have a barrage of problems such as bad radiator, gear issues and bad engines.

Other problems are rusty floors, leaks, failed brakes and faulty brain box. Thoroughly scrutinize the car for leaks, rust, dents and engine issues.

When purchasing a car the most important aspect is the engine. If you don’t have the technical skills take along a mechanic.

Once the engine, transmission/gear selector and brain-box are fully functional you have a good deal. A leaky radiator could be fixed however make sure the car doesn’t overheat. Once you have found the car of your choice test drive it and restart the vehicle once it cools.

Check the Papers

It is very important to authenticate the vehicles documents. Make sure the car isn’t stolen. Check the VIN, car registration details and insurance.

Negotiate

The used car business is all about negotiation. The better your negotiating prowess the more profit you make.

Offer less than the original price and marginally close to your preferred amount. Make sure you have carried out research on the going price for such cars.

Every fault you detect effectively reduces the cars value and increases your chances.

Clean the Car

The amount you spend cleaning the car should be strictly budgeted. Your assignment is to revamp the vehicle into working order at a minimal cost.

That is why finding a used vehicle with a running engine is so important. This affords room for general esthetics such as re-spraying and upholstery.

Find a Buyer

You can sell the car same way you found it. Use free online classified websites and auto websites.

Place advertisements in local publications and store windows. Schedule inspection in a public place and accept only cash payments. Maximize profit by carrying out low cost repairs, clean the car and offer a fair price.
how to start panel beater business
how to start-car window tinting business
how to start mobile mechanic service