Many people have started their home-based car buying and selling enterprises.
You don’t need a lot of money to start buying and selling cars, and you don’t have to be a dealer to do it. You also don’t need to hire a mechanic, although that would be helpful. We will see if we can make money flipping cars.
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!
Flipping Cars For Profit: The Places Where You Can Buy A Cheap Car
The process of purchasing low-cost used cars is quite simple. In addition to these locations, vehicles can be found:
- You can find the finest discounts on automobiles at local car dealers.
- Craigslist is a legitimate online website where people can post classified ads.
- Classified advertising in newspapers and on supermarket bulletin boards
- Private automobiles marked “For Sale.”
Cars To Flip: Do I Need A Dealer’s License?
Flipping A Used Car For Profit:
A successful Car flipping business has varying regulations on how many cars they can sell each year, so you may need to conduct some study in your location.
On the other hand, in Indiana, you may be selling a used car for profit up to 12 times per year before you need a dealer’s license in California, for example.
Visiting a licensed dealer and haggling with him to finish the paperwork on automobiles exceeding the state quota is an option to avoid this.
This will cost you a few hundred bucks, but if each transaction brings in over $1,000, you’ll be much ahead of the competition.
With the help of family and friends, you may be able to avoid the need to obtain a dealership license by using their yearly limits on car sales.
Dealership registration is required in every state. Obtaining and maintaining a dealer license is a time-consuming and paper-intensive process.
Costs a lot of money too.
You must pay certificate fees, bond guarantees, and other government costs to be considered legitimate.
It depends on how much space or area you need for your business. You could be looking at monthly expenses of $1,000 or more.
However, smaller car flippers who are legally recognized as traders can generally operate without setting up shop and do not violate local ordinances by clogging up their yards and streets with extra vehicles.
To flip cars, getting a Dealer Certificate isn’t complicated or time-consuming.
However, if you want to develop a legitimate business out of the sale of the car, the business economics may work to your advantage.
The Requirements Differ From State To State.
You have the option of selling up to 12 automobile flips per year in Vermont. DMV.org says you don’t have to register vehicles you don’t own.
Various countries have lowered their thresholds. To avoid civil or criminal fines for promoting the used car market without the required certification, you should contact your state’s motor vehicle windows registration office before moving further with your car flipping business.
What Am I Looking For?
You need to find cars brands, models, and aesthetics to pick from. As a result, a beginner may find this task exceedingly challenging.
However, since it’s a matter of taste, you’ll get used to it.
The most straightforward approach is to build on your prior knowledge. The more you drive good cars like Civic or Malibu, the more you’ll know about them.
These are an excellent place to start.
You’ll know about the problems you’ve had, the fixes you’ve tried, and any other peculiarities you’ve discovered.
When looking for a house and negotiating the price, use this to your advantage.
Once you’ve become used to the surroundings, go ahead and investigate.
For car flippers, public auctions agreements are preferable to private party sales because of the volume of transactions and the willingness of auction car sellers to accept a top price.
Public Auctions: If you aren’t a licensed dealer, public auctions are probably the best way to get the most bang for your dollars. (Only licensed dealers can participate in dealer auctions, which feature fewer buyers and better deals.)
How Do I Determine The Right Price?
How can you figure out how much a good car is really worth?
If you’ve ever traded a few cars, you’ve probably heard of Black Book or auction prices.
These tools are often not available to the ordinary person or private seller.
Auction and Black Book prices are generally the amounts a dealer is willing to pay for your car even if you don’t want to buy it from them.
This is how CarMax works; however, they usually go a little cheaper than the “auction” price.
This is why you constantly seem to get cheated when trading in your car, especially if you do your research online.
Let me show you how to utilize Kelly Blue Book to determine that value.
This strategy isn’t perfect for flipping cars for profit, but it’s close.
I’m pretty sure about this because I’ve performed hundreds of car flips throughout the years.
Once you’ve decided on a vehicle, go to the Kelly Blue Book website and click the “Check My Car’s Worth” button.
After that, enter the year, make, model, and mileage.
Following that, you will be asked to enter your zip code, car type (sedan, coupe, etc.), condition, and options.
Begin by carefully filling out the fields and selecting fair as the criterion.
Finally, you’re sent to a screen that displays your trade-in range and provides you with a price.
Because it is the same amount that dealerships would pay for the vehicle. As a result, you know roughly how much you are willing to invest in it.
However, just because you know the auction price does not mean you have to buy at that price.
You want to pay $500-$1,000 less than the fair trade-in value for the car.
If you can’t sell the car for whatever reason, you could always take it to CarMax to at least break even. If not, you make a few hundred dollars more than you paid for it.
However, you might earn $1,000-$2,000 for each flip if you can do this without any shocks.
What To Avoid When Car Flipping
On Craigslist, eBay Motors, your neighborhood noticeboard, and in particular Facebook Post, be on the lookout for cheap cars.
I’m focusing on Facebook because it’s replete with scams, especially when it comes to buying cars.
Because of these reasons, it’s worth looking into a low-priced car you’re sure of; you may obtain a legitimate offer as a result.
The private seller has no idea what the item is really worth.
An urgent sale is required because the seller is in debt or unwell.
It’s also possible that the car has a problem that the owner is aware of and that will be expensive to fix.
How Do I Make The Purchase?
Always obtain a vehicle history report before purchasing a secondhand car. Request the vehicle’s VIN from the seller and get a report from AutoCheck or Carfax.
If you buy from a car dealer or online, you should acquire a report for free.
You can also do a free check with SaferCar.gov or the National Insurance Crime Bureau.
These reports will provide you with the vehicle’s entire recorded history.
They obtain information from the DMV, insurance companies, and other organizations that have dealt with the vehicle during its life.
You can fill out the form if everything appears to be in order. Ensure that the buyer shows you the title and that the seller signs in your presence.
Please obtain a copy of their ID to verify that they are the owner. The ID is all you need to confirm if it has already been signed.
To be sure that you’re buying from the person who named the vehicle, you must do this.
To avoid legal complications, never buy an automobile whose title doesn’t bear the seller’s name.
In addition to the title, both parties must sign the bill of sale. If you don’t have a license plate and the officer asks you to pull over, they won’t be able to find you or charge you with a crime.
How Do I Sell The Car?
The time has come for you to cash in on the vehicle you’ve just purchased.
Fix-It Up.
The sale will go more smoothly if there are fewer concerns with the vehicle. Perform a complete inspection, including listening to the engine and making necessary repairs.
Fix any stray trim pieces. Dome lights need to be fixed. Replace the bulb in the headlight or taillight.
Make that the key fob is working as well. If not, the problem may be with the battery.
DIY guides can let you change the batteries in an instant.
Care To Clean It Up.
Keep the exterior and inside of the vehicle spotless to be more appealing to potential buyers. You can remove dirt and food residue with only a little elbow grease.
Make use of Walmart’s cheap carpet protectors if the carpets are too filthy for you to clean.
However, you should ensure that any noticeable flaws or concerns are handled to get it back to its original state, even if it doesn’t hurt.
In addition, an air refresher is a good idea.
Take Quality Pictures.
Your photographs of the car should be of the highest quality and accuracy.
Don’t hide your weaknesses from them, but don’t hide them either.
Do not try to hide a significant dent on a vehicle’s door since the buyer will inspect it in person.
Keep it out in the open, and don’t try to hide it either.
Take high-resolution pictures of the vehicle’s inside and outside.
Show off your new tires if they’re still fresh.
Enticing visuals are essential in the digital world.
Research The Listing Price.
To obtain an idea of how much your car should be selling for, look at other vehicles for sale on Craigslist.
Listing your car at the lower end of the market will help you sell it quickly.
Under no circumstances should you overpay unless you are absolutely sure that the item is in pristine condition.
The vehicle’s year, mileage, and features are the most important factors to consider when comparing prices.
Even if you price the car low, you’ll make money if you bought it for less than the auction price.
Create The Listing On Craigslist and Facebook Marketplace.
Include the following data in your description:
- Model
- Year
- Make
- Color
If you want clients to buy with confidence, make sure you display any service records or CarFax reports.
Make use of the high-resolution images and explain any problems. Your ad should draw in buyers.
Make no apologies for including your telephone number.
Negotiate.
When selling the car, you must do the opposite of what you did when you purchased it.
When negotiating, make every effort to meet the buyer in person.
It’s because you want people to make decisions based on their feelings or impulses rather than their heads.
Negotiating over text or phone is a bad idea unless you have no other choice.
Negotiating should be treated as a game of patience.
Get Ready For The Sale.
To guarantee that the buyer has an enjoyable experience when they come to inspect your vehicle, do your best to prepare everything ahead of time.
The keys, service records, and CarFax should all be in your possession at all times.
If the buyer asks to check the vehicle, don’t forget to provide towels and rags.
Finally, draft the bill of sale and the certificate of title. ‘
Remember that keeping things simple for the buyer is a top priority.
Don’t appear desperate, don’t try to hide anything, and above all, be friendly to everyone you meet.
This will change the negative perception of automobile shopping that many people have, and believe me, and it will have a significant impact.
Make The Sale.
Close the deal if everything checks out. Once you’ve received payment, sign the title and the bill of sale with the buyer.
A single automobile flip has netted you quite a bit of money!
In Conclusion
Is it possible making money by flipping cars?
Other than real estate, car flipping is a highly lucrative business opportunity. It’s a typical side job for college students.
There is a $1,000-$2,000 profit to be made on cars priced between $1,500 and $4,000. The profit margin on just one flip is enormous. Selling and flipping cars is a lucrative business opportunity because of this reason alone.
You can make a lot of money by becoming a car flipper.
For those who aren’t interested in or can’t afford a car flip, read out our top recommendation for making money online…
What Is My Top Recommendation For Making Money Online In 2024?
Our review team has come across a program in the real estate industry that is next level!
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?
With this Digital Leasing program, you can have the phone ringing at every minute of the day and never have to pick up once!
Sound too good to be true?
Of course it does!
But it isn’t…in fact, business owners wish they had this skill!
All you have to do is build and rank a website and forward the jobs off to a business owner in town, you could even email it to them!
This works for literally any service based business, tree service, plumbing, towing, etc.
How do you get paid and how much?
Simple, after you forward the jobs off to a business owner and he makes some money off of them, you simply ask to make the deal beneficial for each other.
A fair price to charge per lead, depending on the industry is 10-20%…let’s just use the tree service industry for example and go by worst case scenario.
Let’s say you build and rank the site and only 10 jobs a month come in. The average tree service job is anywhere from $500-$2000!
That means at bare minimum you have an asset worth $500 a month!
See why they call it Digital Leasing 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?
With Digital Leasing, the deals come to you!
Now THAT is truly passive income!
The training program takes making money online to a whole other level. The owner of the program walks you through how to build and rank a site hand in hand, with the occasional voice over when he is sharing his screen.
You will learn the importance of keywords, website name, how to send call notifications via email, backlinking, etc.
Unlike car flipping, where you’re the closer…these websites turn into your closer. A business will always want more leads and another job. In fact it doesn’t even matter that the job isn’t coming from their website name…they see it as it is…expanding Digital Leasing.
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…
