3 How To Buy And Sell Cars Profitably

(doylc.com) How to Buy and Sell Cars for Profit - You don't have to be a mechanic to make some money from used cars. In fact, most people can buy and turn around cars for a few hundred dollars each, knowing how to find a good deal is easier than you can imagine. The most important tip to remember is that you make your money when you buy the car, not when you sell it. With a little muscle power and smart action, you can almost always flip the car quickly and profitably.

• How to buy cars effectively

Search auto auctions, classifieds, eBay and Craigslist for cars that have been sold by their owners. You will seldom be able to buy a car from a dealership and turn it around for a profit as these cars tend to be sold at top prices. However, casual people don't have to pay employees or pay a lot of rent and can afford to sell their used car for much less than a dealership. Restrict your search to these sellers for best results.

Don't be immediately put off by "rescue" titles, which are often some of the best deals out there. However, be sure to ask what happened to earn the title. A broken window is very different from a cracked axle, but either could result in the car being considered salvaged.

Carfax and other title verification sites are good ways to get cheap vehicle history for major purchases.

Use online review sites to get a good idea of ​​the base price. At places like Edmunds and Kelly Blue Book, you can enter the make, model, year and condition of the car and see the general price. This is often a good bargaining chip and can be used to negotiate effectively when someone is grossly overestimating the price. These websites also usually have reviews that will tell you if the car has any general issues to look for or if there are any reliability records. Some tips to get the most out of these websites:

Note the "Retailer Price". They can usually trade down to what they expect from a dealer since there is a lot less paperwork for both of you.

Check multiple websites at once and always assume the car will be in worse condition than it is - most people will try to sell it for the highest price they can find online and get themselves at a better one state to an error in their ad.

Always start the car with a cold engine. Be wary of cars you encounter that are already on and moving. It takes the most energy and momentum to get a cold car started, and you can often hear or feel problems with a bad engine if it lugs when starting. Watch out for:

Cars that don't start easily or smoothly.

Loud noises or grinding noises in the motor.

Ticking, howling, or shaking when starting the vehicle.

Check the oil level and oil color. As you do so, ask about the history of the car, starting with the last oil change. The lighter the oil the better, and it should never be dark brown or muddy, especially if it has been changed in the last six months. If you see water or solid parts (like metal) in the oil, walk away - repairs don't come cheap.

Have the seller rev the engine 5-6 times and watch the exhaust. If you see black or thick smoke move away, especially if the oil level is also low.

Check for leaks under the car after it's been running for a while. Expect some water. But oil or radiator fluid is a big no-go, and the car probably shouldn't be bought. Another good way to check this is to have someone crank the engine with the radiator cap off. If you see air bubbles in the radiator when you rev ​​it up, walk away - the head gasket is probably blown.

Is the engine temperature high? If that's the case and the car is losing hot water (not liquid or oil!) then you could be in for a bargain. This could just be a leaky house causing the overheating, meaning you can inexpensively fix what appears to be an expensive problem.

Open the hood to hear and see the engine. There shouldn't be any loud ticks or gurgles, and it's pretty obvious when something doesn't sound quite right. Have someone idle the engine and make sure it still sounds good while you check for problems. Turn off the car and inspect the belts and hoses for corrosion, rust, or excessive wear. While 1-2 belts and hoses are easy to fix, a full overhaul could wipe out any hoped-for gains.

If possible, drive the car before you buy it. If you're a real bargain hunter with some mechanical skills, you can buy a non-working car cheap if you think you can make it work. But in all other cases you want to do a lap with the car. Test different speeds and variations, ideally both in a neighborhood and on a freeway or street where you can safely increase the speed. Pay close attention to:

Steering: Is it light and responsive?

Braking: Does it stop the car quickly, especially in quick stop situations? Most importantly, does the car stop in a straight line?

Transmission: Does it shift smoothly? For cars with automatic transmissions, you should be able to start and reverse in less than a second and a half. Any longer delay could be a bad sign.

Electronics and functions: Are the lights, windows and air conditioning working? Is the odometer still running or stuck (and if so, do you know when it stopped?).

Use any perceived flaws to lower the price. This is especially important if they didn't mention these deficiencies in ad serving. Most people speak honestly and openly about problems the car might have, but you should constantly look for other problems that you can use as a negotiating tool. If there are problems, minor to major, that you have not been told, but that you are confident can be fixed inexpensively, you can often get significant discounts.

As you examine the car, show them problems when you find them. Most people trust a calm, thorough buyer to walk them through your tests and problems, making them more likely to rely on you when it comes to price.

Also rate your own car knowledge. If they seem lost near an engine, you can use this to your advantage to highlight any perceived issues.

Make sure you get the title and a copy of the vehicle registration. If you don't have a title handy, you should be very careful when buying a car. The title is required to register the car and then get insurance for the vehicle. If they can't pass the title, rest assured the car is worth renaming.

For more expensive cars, use a site like CarFax to get title history and avoid unpleasant surprises.

• How to sell ​​cars at the highest value

Determine your lowest possible price and your target price before you put the car on the market. Use the same review sites you used when you bought the car to set a reasonable price, and use Craigslist and local ads to find buyers nearby. If you don't care how fast the car sells, start with the price at the higher end. If you want it to be gone fast, keep it on the low end and note that you're firm on the price.

Even if you say you commit to the price, people will still try to negotiate.

The phrase OBO ("or Best Offer") is used to indicate that you are willing to negotiate the price, which is a good way to convince people convince them to call you.

If the car is of high value or a rare find, you may be able to make more money at auction than you would from a direct sale. Of course, be aware that all auctions are a bit of a gamble: you could get a lot more than you bargained for, but you could also get a lot less.

Have a mechanic check the car and fix any problems as long as they're cheap enough to resell for a profit. Because of this, you need to set your price point early. If the repair cost makes it more expensive to maintain than you can sell it, then obviously it's not worth fixing. However, if you get a cheap car with relatively cheap repairs, you can charge more than the repair cost. While buying a car in need of repairs can be a dice roll, smart buyers can make big profits on small issues that the original seller was too lazy to fix.

Check online if the car has general problems or problems. Is there anything you can do to convince potential buyers that the issue has been resolved?

What repairs can you do yourself? For older cars, there are usually sites on the internet with home repair advice, and more of these are within the reach of a home mechanic than you might imagine.

Make the car as clean as possible. A clean car is much easier to sell, especially at a higher price. Plus, vacuuming and window washing doesn't cost anything, although it can mean the difference between cash and a missed sale. Be sure to:

Wipe all surfaces with a clean cloth.

Vacuum all surfaces, including under and around the mats.

Rinse and wash the exterior including the hubcaps. For higher priced cars, consider a coat of wax to give it a clean shine.

Show the buyer any obvious defects and mention them in your ad. If they know the problems beforehand and still come up, they can't use them to drive down the price. However, when they find issues you didn't mention, they suddenly have a few bargaining chips. Being honest up front might seem like admitting a bad sale, but it only brings in buyers who are serious about their purchase. While you might be able to push some minor issues past a buyer without them noticing, people will generally pay more to a seller they believe to be honest and trustworthy.

Make sure you provide lots of pictures, especially of problem areas you noticed (e.g. a torn seat). This builds trust and can help people stop worrying about potential mistakes.

Change oil, coolant and windshield wiper fluid to increase the price immediately. Unless the seller has recently done so, this is a cheap way to clean the car and raise the price. Be sure to mention these services in your ad, because buyers will be glad they don't have to worry about these little hassles and are generally willing to pay a little more.

Also pay attention to the registration status. When it's almost expired, people have to pay $100 or more to register it again and they can factor that into their negotiations.

Note state-specific requirements such as the California smog tests. If you can do this in advance, you can usually charge more than the cost of the test because you save yourself the hassle of having a smog test paid for.

• How to profit maximization

Keep an eye on what other cars are selling for, even if you're not currently interested in buying them. For example, imagine you see a clean 1987 BMW e30 that is auctioned for $2,500. While that's far too high to buy and sell for a profit, know that a similar $1,500 car could be a good investment down the road. And when you sell it, you can comfortably keep the price at $2,000 or higher, knowing someone will pay that much.

Watch or watch car auctions and car sales shows to get a good idea of ​​prices for a variety of cars.

Visit car review sites regularly and check out the car sales newspapers even when you are not at the market. The more cars and prices you see, the sharper your sales spirit will become.

Look for buyers and sellers who want to trade quickly and easily. When you work with others to make a profit, you're both fighting for every penny. But people who just want to get rid of a car, or buyers who want a car that's easy to get around in, will be much easier to negotiate.

When buying a car, look out for phrases like "get rid of it," "need to make money fast," or other signs that someone wants to get rid of the car, no matter what the price.

If you're selling a car, pay attention to those who move quickly or seem excited before they've even seen the car. Be sure to ask why or what they want the car for, as this can inform you about their financial situation. Desperation signals good deals.

Act like a shark. Buying and selling cars is not for the faint of heart. If you want to make money in this game, you need to learn how to bargain. While everyone has different strategies, the best overarching principle is to be honest with yourself beforehand. Ask yourself two questions: What would you ideally like to pay for the car and what is the maximum you are willing to pay. Start a little lower than the first number and slowly work your way up to the second.

Be honest with the seller: "I can only buy/sell this car for $1,200 - can you meet me there?" If that's not possible, you can leave.

Always have cash on hand and ask potential buyers to do the same. If you can pay on the spot you can often get them to lower their price to save everyone the trouble of meeting up again.

Don't be emotional - you're just buying the car for the money. If they don't reach your pre-planned price, beware.

Bring a friend, especially if they know cars. Two heads are better than one, and if you have a friend who's handy with a wrench, it's worth bringing one along. Not everyone knows everything about cars, but that doesn't mean you still can't make a profit. Your friend can crank the engine for you, watch the car test drive, or inspect the engine and point out small imperfections that you may overlook.

In general, it's a good idea to have a friend with you when you go online to stay safe.

Always meet people in a public place.

Feel free to leave cars and come back later for a cheaper price. If you're not absolutely sure if a car is a bargain, leave your phone number and have them call you about the sale. Remember that these cars are only there to make money, so don't get too emotionally attached if they are sold to someone else while playing hardball. If you want to get really good prices, waiting 2-3 days will help you assess the seriousness of the seller and the overall condition of the car. If it still hasn't sold in a few days, you can almost always ask to drop the price by 10-25%.

Trust your instincts when dealing with buyers and sellers. If a car doesn't feel right or a deal seems dodgy, there's no shame in walking away. Hundreds of used cars are on the market at the same time and your goal here is to make profit and not take undue risks. If you're afraid someone is taking advantage of you or neglecting the whole story, trust your gut and walk away. There will always be more offers on the street.

Look the seller in the eye and ask if you made the right choice when buying a car. They should be able to look straight at you and shake your hand.