Are you looking for an extra source of income? If you are good with your hands and know a thing or two about cars, you should consider getting into car flipping. Do you love cars and are not opposed to buying a new one every once in awhile? You can turn your passion for automobiles into a profitable business.
What is car flipping? Just like website flipping, you can buy a car at a lower price, add value to it by fixing it, and sell it for a profit. You can easily make a profit of 20 to 30 percent at least. The entire process can be explained in three stages:
Purchasing a car at a lower price
The first thing that you need to do is buy an old but flippable car. How much are you willing to spend on your first flip? To be on the safe side, you should use money from your own pocket for the first flip. This way, you will be mitigating the risk.
Although luxurious cars take some time to sell, you could end up having a very high profit margin. On the other hand, common cars such as sedans are easier to sell because more people want them. If your budget fits common cars instead of their luxurious counterparts, you should go with what you can afford. Ugly cars are the best to flip because you can buy them at extremely low prices and transform them into beautiful cars.
Ugly-looking cars only need a nice wash and a paint job to look as good as new. However, you should not just buy a car with the worst paint job and tons of body damage. If it is wintertime, you should choose a car that can handle that kind of weather, not a convertible. Additionally, you should buy a car that falls in the range of 1000-4000 dollars, because most buyers cannot afford to spend more than $5000 on a car.
Getting the best deal
Once you decide which car you want to buy, it is time to find the best deals. As a beginner, you can start on Craigslist because you need some time to learn how to spot a great deal. Since thousands of flippers frequent Craigslist in search of deals, you should be prepared to face some tough competition. To beat the competition, you should consider doing the following:
– Be willing to drive for long hours to meet the seller
– Look for the latest posts
– If you find a good deal, offer cash to the seller
– If a phone number is listed, do not hesitate to reach out
Consider using Google alerts to get a notification the minute a new ad is posted. Some of the best deals are sitting on someone else’s lawn waiting to be found. Walk through your neighborhood looking for old cars that your neighbors have no use for and offer to buy them.
They will be more than happy to hand over their burden to you.
Scrutinize the car before you buy
According to the experts from bestcar.loans, you need to create a checklist of all the parts that you would like to inspect. You should not rely on your memory as you might forget important things.
The deal is no good unless you check the car for faults. You need to check whether the car is stolen and inspect its functioning. Do not be afraid to check out the details: how are the interior, engine, exterior, and transmission? You should not just throw money at a car before doing your due diligence.