How To Buy And Sell Used Cars For Profit
Buying and selling used cars can be extreemly profitable, with the High Cost of new cars there is a Huge demand for good quility used cars, by specializing in cars at lower price ranges you will have a larger audience that that can afford them.
Do some research and find out what the most popular best selling cars in your area are. By staying in the lower price ranges with these popular vehicles you will be in a higher demand market since more people can afford these vehicles than higher priced more expensive cars, this will make it much easer to sell quickly for a profit, by helping fill this huge demand for good quility used cars at affordable prices.
You make your money when you buy, this is an important key to your
success. You will need to pay wholesale price or below less the cost of any needed repairs, and other expenses ie: detailing, newspaper ads, etc. Once you know the wholesale price, less repair costs and expenses, you will know how much you can pay for a car. If you buy it right you wll be able to sell it at a profit and still give the buyer a great deal.
One of the most important things
you can do to purchase a used cars at
bargain prices is to do your homework.
You should check your local classified
ads and see what the asking price is for
the type of vehicle that you are in the
market for.
Make sure to get the high and low Blue Book
and wholesale prices on the vehicle that you
are interested in. Here are some excellent
sources for getting pricing:
NADA GUIDES - www.nadaguides.com
KELLEY BLUE BOOK - www.kbb.com
EDMUNDS - www.edmunds.com
Other resources to check with is CARFAX. They can supply you with the vehicle history report. The National Highway Traffic Safety Administration has a research area to check recall history on cars. We recommend that you have the vehicle you are interested in purchasing be inspected by your own mechanic prior to purchase.
Newspaper Classified Ads are an excellent place to find cars at well below retail prices. Many of these people will be happy to sell their used cars for several hundred dollars more than what was quoted by the dealer and you will end up with an EXCELLENT BUY!
Online Auctions can be a great
place to find bargains. You can shop right
from the comfort of your own home. Look
for auctions with no reserve, these auctions
don’t have a minimum price before they will sell.
Public Car Auctions are open to the general public and do not require you to have a Dealer’s License. Public auctions can be an excellent place to purchase cars at wholesale prices. Some of these auctions are: Auction Repossessions of Credit Unions, Banks & Lending Institutions. Some public auctions also auction Police and Local Municipalities, City, State, & County vehicles.
Estate and Bankruptcy Auctions can be a very good place to purchase vehicles at wholesale prices. These auctions are usually advertised in newspaper classified section or handled by Probate Estate Auctioneers.
Government Auctions are an excellent source for bargin vehicles. They include vehicles from DEA drug raid seizures, FBI, IRS, U.S. Customs Auctions, Department of Defense, General Services Auctions, Resolution Trust Corporation, Department of Housing and Urban Development, and U.S. Postal Services.
Rental Car Companies often sell
their fleet of cars by auction. They can
be a great source of cars. Contact
these large companies and inquire.
Dealer Auctions can be one of the best sources
to cars at below wholesale prices. Most of these
auctions require that you have a dealer’s license.
These auctions include lease cars, trade-ins,
rentals, and fleet vehicles.
Stay away from used cars that need major mechanical repairs or body work. Look for good, dependable cars, if the pait is a little dull or the rug is dirty, you can detail, polish and wax the car and clean the carpet. Replace the floor mats if needed. By doing a few hours of work, you can make your car worth hundreds or even thousands of dollars more. By having a clean care, inside and out, you will attract more buyers that will be willing to pay you top dollar for your car.
When your car is ready to sell, you can place and ad in your local newspaper's classified section, or you can place your ad on the internet and reach a wider audience. www.cars.com and www.autobytel.com has a lot of traffic and is enexpensive. Selling cars through online auctions has also become very popular. It has become one of the easiest, fastest, and most cost effective methods to reach your target audience of hundreds and even thousands of people looking at your car. www.eBaymotors.com or www.auctionyourautos.com are both online auction sites.
Most states require that you have a Dealer's License when you buy and sell vehicles for profit. Check with your states Department of Motor Vehicles or Department of Public Safety for more information on how to obtain a Dealer's License. It is important to consult with your attorney, insurance agent, accountant, and other government officials to determine what permits, licenses, records, insurance policies, etc., are required.
