If you’re looking for a side hustle to supplement your income, flipping used cars could be a viable option if you specialize in the field and dive deep into it. Car flipping is becoming popular among hustlers because it is both consistent and enjoyable.
The main goal of car flipping is to profit from used cars by simply doing it correctly. It is also one of the most reliable and risky business models. Let us know about flipping used cars and how it works.
What is car flipping?
Car flipping is the process of purchasing a car and then reselling it for a higher price. Typically, it entails purchasing a new, modified, or historic model car and selling it to people who have a strong desire for these historic and modified vehicles.
Car flipping can be a full-time job or a side hustle; either way, it’s money coming in.
Do I need a license to sell used cars?
Yes, you do need a ‘Dealer’s license’ to buy and sell a car. Because you are flipping cars for a profit, the relevant government must grant you permission.
However, if you want to sell your old car and buy a new one for personal use, you do not need a license. If you are flipping used cars without a license, you are committing the illegal act of title-jumping. People do this to avoid paying taxes, and it is a punishable offense.
Places to find used cars?
The most important aspect of purchasing a used car is locating a trustworthy and reasonable seller. “Know what you want” before going anywhere or searching for cars, know what you want, such as the brand, models, version, resale value, and other factors. You’ll have a better idea of where to look for the desired car.
There’s the Internet, Auto Auctions, Craigslist, eBay Motors, Facebook Marketplace, and other options. There’s also your local mechanic, who will know a reliable seller.
How much cash do I need?
You’ll probably need $500 – $1000 to buy a used car and do some minor repairs, which could cost around $200. Customers will be approached to buy if the condition is excellent. The more you invest, the higher your margins can be. However, for a start, $500 – $1000 will suffice.
How to find fair car prices?
Give it a test drive to see if the price is reasonable. Even if you can’t understand the situation, bring a mechanic friend with you.
There are now several online websites that guarantee the car’s Fair Market Value (FMV).
For instance, www.edmunds.com/www.kbb.com
How to increase the value of a car?
Adding value to your car is an important aspect of car flipping. This can be accomplished by improving the vehicle’s condition, such as replacing tires, car mats, dents, scratches, and a clean wash to keep the shine.
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How much margin to keep?
The margin to keep when flipping cars is determined by how much work you put into it and how much value the vehicle has. It should not be more than 10% -12%, and if demand is high, then the percentage can be slightly increased.
Sites to flip your cars
There are hundreds of websites available to flip your cars, some are;
- www.autotrader.com
- www.carsdirect.com
- www.hemmings.com
- www.autolist.com
- www.cargurus.com
- www.carsandbids.com
Negotiating price
Negotiation is a crucial skill when selling a car to a buyer. Convince or confuse the buyer into believing that the price is fair. This may appear insignificant, but it works the majority of the time. Greed is not an option here, so the price you decide must be worth the car’s value.
Finalizing the scale
Before winding up, ensure that the buyer is persuaded to avoid future problems.
Also, ensure that all documents are in order to avoid any legal issues. The documents must not be forged and must contain all government-related information. Bravo! The car flipping is complete.
In the end, it’s just you, your car, and the buyer. After all of your efforts, you’ll be able to see the fruit of your labor. Research more, hustle around the clock, dive deep into it, love what you do, and never lose focus.