If you are flipping cars for money, you need to make sure the car is good. You can never make money with a bad car. Not all used cars are junks. Not all of them need repairs. You can make cash right in there if you spot those that do not require any repair or little repair for reselling. Keep some money and pull some out.
While deciding on the sourcing versus selling price, even if you sell a bit below the book value, you should be able to make profits.
“Someone said, I took the good parts out of an old car and I put it in a new car, the same model, I bought in a sale and I drove it good for 3 full years.”
Fix Them Up Nice!
Good need not mean new, get the right sense of making things good while flipping cars. Making brilliant profits by flipping cars can warrant the need of hi-fi mechanical skills. However, it is lot of work and you should have lot of car knowledge to be doing such advanced flipping.
Salvage Cars, Should I?
Do not consider this idea until you are years experienced flipping cars. If you are a beginner you should be sourcing cars that are good, with least possible repair, making flipping easier.
Salvage Cars – It Might Not Always Work!
The problem with making huge profits out of salvage cars is that you should be sure of what is actually wrong with it. Many times assembling a car with spare parts from different cars, do not work. You could definitely do it and make it work; however, is it worth the time and effort? If at all you do, if you are not 100% sure of what is actually wrong, you are not going to be excited about the results.
Sourcing Dirty Cheap Cars
You need to have lot of luck and expertise in sourcing dirty cheap cars. Many people are reluctant to put in money to repairs to further use, specifically older people. Whether you source a small car or a classic edition you need to be sure that you can turn it around and sell quickly.
Dealing with the Buyer
When you show the car to the prospective buyer, more often than not take it to their place or show it to them in some parking lot. Never do the deal at your house with your kids. They are going to tell them of some repairs you do not want to declare to the seller!
Tell the buyer a bit about the car and about why you like it. You should point out a couple of used car traits and usefulness and then leave them to decide. If it works for them, they are going to buy. If they feel it is not worth the salt they will not buy. Do not hard sell.
Keeping Money Flowing In
When you identify a car that is in demand and if you come across a seller, who is motivated to give it away, look at it, estimate the profitability, and buy it. Sell the vehicle for more than what you bought it for and keep some money to buy the next car and use a bit of it for yourself. With the back up you have, continue flipping cars for money.