Keep up the good work. This blog is really interesting and gives rich details on buying cars cheaply and sell them at a profit. Great hub. I love the checklist. It's very thorough. A few of the notes were new to me. You have got my juices up to attend a car auction. Off to see what is offered in my Arizona area. Jerry , did you mention check for prior collision or body work?
Carfax history report? What type of license is required to buy from an auction in Texas? And if buying from an auction does the requirement of a surety bond for license still something that has to be met. Example let say i just want to buy a car from the auction and sell it to someone after i fix it up and this would be my first car. What requirements would i have to meet in order to do something like that. Hi Roger, Best if you spent about 3 months observing the prices, taking notes, watching others and you'll soon see what's cheap and what isn't and what's popular and what isn't.
I've read your, article and found it very informative, I am calling from the Uk but the principle must work all over the world, Perhaps you can help, you said you could see the Volvo was cheap and there was a profit to be had. Lot's of dealer auctions are open to the public as well, otherwise yes, you'll need a dealer license. I was wondering why you have to put the title in your name and not leave it in the previous owners name if you plan on flipping the car. I believe it's called an open title, that's what dealers do.
This way you don't have the expense of the title transfer and sales tax and the time it takes to transfer a title. If you buy from a dealer you can't do that but from a private sale you can. Then you don't have to worry about selling a certain amount of cars too. I'm not an expert but just like cars as a hobby and usually sell them within say a year of buying them without driving them very much. Most of the times I do a title transfer so I can get plates. I lost my job about 11 months ago and thought this would be a good way to make some extra money, since I like doing minor work on cars anyway.
I usually end up losing money though because I invest to much or paid to much for them. I'm selling a car right now for quite a bit more than I paid for it, but it's a rare vehicle so I'll see if it works out. Great blog! I was bit confuse regarding this and now got clear idea with your content. Yes and no. If I've got say three cars at any one time I park them near the house but only have the one I'm selling up my driveway.
If they think you're flipping cars you'll lose their trust straight away. Jusdeep - I'd be looking for an everyday car to begin with. Something that a person uses just for transport and going from A to B with. Think about a Toyota Corolla or Honda Civic. Top mileage maybe 80k as long as it has a good service history.
You'll have to hang on in there Yevgenly. Audi's are nice cars but not understood by your average buyer who trust Japanese cars better for going to A to B.
Bought a car to try to sell it at a profit- Audi with 9ok miles; however, after trying to advertise i am not getting much interest. Any suggestions? I did not overprice it comparing to other sellers. Requirements vary from state to state. There's quite a lot to it. Hi Mr. I have buying and selling cars in mind. My question is what type of information would the DMV want if you wanted to test and obtain a dealers license. I'm sorry I don't know anything about buying cars in Nigeria, or, how you could check if they're stolen.
They'll have to more than likely offer a discount plus a guarantee so yes they will bypass what seems a great buy. I found it difficult to understand how could some cars that seemingly look good and arent so old would be selling for under , and still in all the dealers were letting them go by. Why wouldnt they be jumping all over them? I checked on line and found that other dealers are selling for at least 2, Can you offer your insight, I am missing something here. Great article! Thank you very much Jerry. I have been interested in doing this for a while because I like cars.
Your article helped very much, really appreciated. Hey, Jerry. It says you wrote a book on selling used cars, what's the name of the book. The article was really good, do we need more information than that? Hi Piet - Yes I treat it like any business and pay taxes. If you buy well and check thoroughly refunds are unnecessary. If it's a mechanical problem that's not serious I'll fix it. If it's serious, I'll refund but if it's just a change of mind - no refund. Do you pay tax for your business?
And how do you deal with people who request refunds because of not being satisfied after using you cars for a couple of days? Jerry, what is your advice on modified vehicles such as lowering, lifting, non original tail light covers, etc? In other words mods that are costly to reverse. What type of make and model sell the most, does that matter? Your article is very helpful for me to start my new business and thank you very much for educating me. And also this article gave me lot of encourage to start my business. Some of the tips were no brainers but I did learn several new things so well done, thank you.
I tend to buy cars for female friends or family members who are down on their luck. I am not rich enough to buy everyone a new car I only like new cars but I grew up poor on a farm and have very solid mechanical skills. It had some major issues, one being the radiator leaked and it had failed emmisions. I have to say, that thing drives like a champ. Year and a half and no problems. I would like to buy in United state and sell in Nigeria because am based in Nigeria.
I don't know how possible it will be for me to buy cars from US without coming there because I don't have a visa to the state? Do you have any tips regarding high mileage? Or experiences having to do with car fax reports? What's your opinion on auctions that are open to the public?
Hi there - The first car I bought was off an estate. I was lucky that they didn't know the value of it but also had so much other stuff to sell that they didn't really care. Hey Jerry, I was wondering where did you purchase first car? Or how did you go about finding you first car to flip? I know you said that actions are you favorite, but that's when you are licensed. I just decided to jump into this with about 7k. Trying to figure out my first move. Basically I avoid trouble as much as I can so yes I do stay away from rebuilt cars but not necessarily high milage cars.
Japanese cars can do a hefty milage if they're well looked after without problems, but I do stay away from high mileage city cars. No you're quite right, you don't have to use a broker if you've got a GDN through autoincome but this is just if you're doing it part time to avoid their fees. Is the broker option if you do not want to sign up to become a dealer and pay monthly, thereby paying a broker per car buy transaction?
Or is a broker also necessary to use in addition to a service provider like autoincome. Great stuff here. I am looking to start my own dealership and would love to message you with some questions. Do you do private message or email? Thank you so much Jerry I have been interested in this for a while. Your article helped so much! This may be a stupid question, do you have to get the title put into your name from auction before you sell it? Awesome article, thanks for the share! I have a quick question. I recently bought an out of state car from an auction and have a 30 days temp tags on it but will be selling it within this period in my state.
The title has my current state address; do I need to get the car registered in my current state and get the license plates or is it okay to sell the car without this process? Also, if I can bypass this process then how can I just pay taxes for my purchase? You said you insure for a couple of weeks. What happens if you don't make the sale before then?
Use this only as an intermediately step though. So, just use the first six or seven cars to build your confidence up and get a handle on how all this works. Then become a Licensed Dealer. It gives you independence to operate freely and legally buy and sell as many cars as you like throughout the year. You also get a dealer plate if you happened to buy an unlicensed car then this plate gives you the right to legally travel on the road with it until registered. Plus an auction pass.
An auction pass is for the Dealer Only Auctions. You still have to pay as you normally would for title fees. It takes about two to three weeks to set up. On the other hand, if you have to spend any money on the car for repairs, tires, petrol, car detailing costs, you can claim all these expenses back against the profit you make. There are more if you take a look through Google but these are the two with the biggest reputation.
Personally I use easyautoservices. Hey jerry thanks for a great article i was wondering if you need a dealer's license for doing this? And what kind of auctions do you go to?
Cars between the range of $1,$4, can net a profit of . The mission is to try to buy cars below auction pricing to maximize profits and . Collect the money , sign the title and bill of sale and make the buyer do the same. dynipalo.tk: Flipping Cars: How to Make Money Buying and Selling Cars for Profit (Audible Audio Edition): Samuel Page, Tipping Point SEO: Audible.
It might only be for a couple of weeks so it's not expensive. But best to cover your asset. You just don't know what's around the corner - could be your test pilot has an accident, or, the guys at your local garage. Shop around for cheap quotes. When buying a car for selling purposes do I need to buy an insurance or how does it work???? Thank you. Hi, I was just wondering if you have a dealers license when doing this sort of thing?
I'm interested in doing something similar, but I'm worried about all the legal processes and insurance adding up fast and eating my profits right up. Thanks for a good read!
I normally meet them in the evening or weekends. Just a convenient time for them. Where do you usually meet the person when going to look at the car? And how long does it take for you to check everything? Other product and company names shown may be trademarks of their respective owners.
HubPages and Hubbers authors may earn revenue on this page based on affiliate relationships and advertisements with partners including Amazon, Google, and others. HubPages Inc, a part of Maven Inc. As a user in the EEA, your approval is needed on a few things. To provide a better website experience, axleaddict. Please choose which areas of our service you consent to our doing so. Jerry Fisher more. Buying a cheap car is actually fairly easy. What to Look for at Car Auctions Car auctions are my favorite place to find cars, as they are fast and the cars can be very cheap.
What to Look for on Craigslist, eBay, and Newspapers Some great buys can be had from all of these sources. Remove the cap and rev the engine. If the water bubbles up with air, it's got a blown head gasket. Let the car idle for 20 minutes and check the water temperature gauge. But there are two ways to get around this restriction. So, once you've sold six or seven cars and built up your confidence, become a licensed dealer.
The Oil Level If it's low, don't be too worried until you start the engine. When the car's warm, get the owner or a friend of yours to operate the accelerator peddle. Go around the back of the car and monitor the exhaust while the accelerator operator stabs the accelerator from idle to full about eight times. They should hold the accelerator about halfway mid revs twice or three times. What you are watching for is oily smoke. If the exhaust is blowing excessive smoke out while under power, just say thanks to the owner and walk away. This means it's burning oil through the piston rings.
It's an old worn out engine. Don't buy. The Oil Color The lighter color it is, the better. If it's dark, that may just mean it hasn't being changed in some time. That can still be fine. If the oil has some water in it, walk away and don't buy. This means it's got a blown head gasket and is going to cost a fortune to repair. The Radiator Take the cap off the radiator or cooling tank and get someone to rev the car in bursts.
If water bubbles up with air, walk away and don't buy. It's got a blown head gasket. Buying a cheap car is one thing, but it's still got to be trouble-free. Water Temperature Leave the car idling for 15 to 20 minutes. During this time, follow the water temperature gauge inside the car. If the radiator isn't bubbling with air and there isn't water in the oil, the reason for the high temperature may be something reasonably easy to fix, like a leaky hose in the engine compartment. Have a look under the engine. Be careful. Remember this is boiling water you're trying to find.
If you see water dripping and you can spot where it's coming from, then this could be bargain time. You should be able to convince the owner that the engine's about to blow, so offer him a fraction of what he wants. If you don't see any drips under the engine, walk away. The problem is probably serious. The owner probably knows that and he's actually trying to get the better of you. Water Hoses and Engine Belts With the engine off and cooled down, go over all the water hoses and engine belts.
Have a look at their overall condition. If they all need replacing, that can be expensive and take any profit you could have made out of buying anyway. Listen to the Engine Turn the engine on and have a listen to the motor while it's idling. There shouldn't be any loud ticking noises.
Get someone to rev it up halfway and listen again. Make sure it was running on all cylinders while being revved. If it was stuttering on the way up the revs, that could mean that one of the spark plugs or spark plug leads is failing. This isn't necessarily a bad sign. If this is the case, the owner may be selling the car cheaply because he thinks the problem is worse. At this point get a mechanic to check the problem out, if you are keen on the car. Is It Leaking Oil? Make sure there are no horrendous oil leaks. Reverse the car out from where it normally sits, whether it be in the owner's garage or driveway.
If there are lots of fresh oil drops on the concrete surface, don't buy it. Oil drips can be expensive to repair. Check the Transmission For a car with automatic transmission, turn the car on and put it into drive. See if there is any delay before it engages. Do the same for reverse. Shifting into reverse or drive should be totally smooth and instant. If there is any hesitation or the car literally jumps when you shift the lever, then it's not a great transmission. This is just a worn transmission, and depending on the hesitation time shouldn't be longer than say one and a half seconds the car may still be worth buying if it's cheap enough.
Test the Steering With the engine turned on, check for play in the steering when you turn the wheel from side to side. On a test drive on the open road, test to be sure you don't have to correct the wheel all the time. The car should travel straight. Test the Brakes While on the open road, make sure you haven't got a car riding on your tail at the time, and if the owner's next to you, give him a warning before you brake. They get almost the same mileage as a hybrid without having to deal with the battery and other expensive parts that become costly repairs. Although I am glad to have had the experience of buying and selling cars and it has been invaluable in picking up a number of different skill sets, I personally would not recommend it as a means of making money.
It is quite time consuming and getting more and more competitive. Regardless, I hope that this post has been helpful. If nothing else, you can use the tips learned here to buy your next car! Thank you, glad you got something out of it. Yea it was definitely a process, lot of learning auto mechanics through YouTube.
I just listened to your interview on Bigger Pockets. What they really need are loving parents who have the time to be there for them. I have a friend named Jon Lee — good ultimate player. Anyway glad you liked the show. Regarding the license plates, I would usually just take them off one of my parents cars temporarily just for the pick-up to bring it back to my house. If you want to be by the book and pay all those taxes, you just take the title to the MVC and they will issue you new plates when you register the vehicle.
You are a hustler. Seems like you found your niche. The thought has definitely crossed my mind, but currently pursuing much more passive methods of acquiring income. If I some day get an apprentice who could manage the shop I could perhaps look into it again. Great info here! I will be using it for buying a new used car for my wife and I. I definitely see what you mean by the competitiveness in this market though. Just curious. This saved on taxes and title fees. Skip to content. All the cars except one were bought on Craigslist. Where did you sell all your cars?
If you can get sponsored as a buyer by a small dealership, do so rather than starting your own. Leave the sales-y, aggressive language to the professional dealers — they have enough credulous buyers to keep them busy. I have never done it before but I am kind of scared to invest my money in something I know nothing about.. I have no car payment- I drive for free. This car needs a tune up, rotors, distributor, and spark plugs I think. Probably the most popular place to go hunting for a car to flip is the local machinery auction. Also here is list of other work that I have done to it as well etc.
All the cars were sold on Craigslist. Were you pretty knowledgeable about fixing up cars? When I started, I just knew the very basics of maintenance from fixing up my motorcycle things like changing the oil, spark plugs, air filter, etc. As time went on and problems did arise, I used YouTube for help fixing certain issues. I would search for a video and often just follow along with it. What condition were the cars you were searching for? I wanted well-cared for, single-owner Japanese cars that were under-priced and could be flipped quickly.
Why buy Japanese? Japanese cars hold their value. Yes you do! To limit these costs, I would try to get the seller to agree to sign over the title without putting my name as the buyer. Many times, I would get a new title and not even register the car. It would just sit in my driveway. You can save a ton of money by transferring your old plates to a new car and doing the same thing with registration. Did you like buying manuals or automatics? Automatics for sure.
Their target audience is too small. How many cars would you buy at a time? I only ever owned one car at a time. Would you buy from dealers? I never bought from dealers, because dealers know their business. They are not going to let you get away with a good deal maybe an ok deal. Finding Deals I spent a lot of time scouring through Craigslist.
Questions I would ask: Are you the original owner? Is there anything wrong with the car? Has the timing belt been changed? Do you have maintenance records? Is there any mechanical or cosmetic damage on the car? Is the inspection current? Why are you selling the vehicle? Is the price negotiable? Give your first offer at 65 percent of your target price.
Calculate three raises at decreasing increments to 85, 95, and percent. It gives the number credibility and weight. Inspection Inspecting the vehicle is critical. Conclusion Although I am glad to have had the experience of buying and selling cars and it has been invaluable in picking up a number of different skill sets, I personally would not recommend it as a means of making money.