Is Flipping Cars worth It
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Over the past few years, vehicle/car flipping has received a great deal of attention due to its ability to assist individuals in finding fantastic cars on the resale market while also making a profit. But how profitable is it as a side business, and what kind of revenue can you anticipate from it?
Cars are unquestionably unique. Almost every household is reliant on one, and they play on people’s emotions to generate desire. They are also costly. Because of these factors, flipping vehicles is highly popular and profitable if you know what you’re doing.
There is something taboo about flipping vehicles, which stems from the impression that all car dealers are shady and untrustworthy. This is not correct.
This blog will show you how to overcome that impression and how flipping your automobile for profit can be gratifying, simple, and enjoyable.
More than you think if you do it right. And not just with exotic cars or classic cars.
You could make money flipping soccer mom vans if you don’t keep them long enough.
There are some main things you need to look for when deciding to flip a vehicle:
- your purchase price
- fair market value
- supply and demand
- anticipated value in the future
Here is the issue. It can be hard to anticipate the value in the future for any car sometimes.
This is why in order to flip a car, either make sure you get it well under fair market value, and try to make sure there is some “classic character” to it.
Negotiation matters too. If a private party is selling say an Audi for $25k, negotiate something lower.
A few thousand lower even. You’d be surprised how many people will still consider you.
Getting a car under market value means more profits, and the longer you can keep it while still being “above the water.”
If there is not too much supply and enough demand for that particular car, and if you can get it around 20% or more under fair market value, you can surely make a hefty profit even after keeping that car for a year.
The best bet is to sell it ASAP though unless it is a true classic car that will most likely go up in value over time.
Just a few months ago, I bought an BMW for only $20k (roughly). It only had 70k miles and was way undervalued. I resold it for much more just a week later to a friend’s son of mine.
I still resold it for well under market value to give him a good deal, and since he was a friend of mine, he won’t be realising that at Christmas time I will be buying a supercharger kit for his car.
So to summarise, it is all about when you buy.
You make money when you buy and not sell. Buy low sell high and make sure the car is old enough to not suffer major depreciation.
Are You looking for a New/Used car? Check the list of Best Car Finance companies in the market as per your needs
- MyAutoloan.com : Car loan for New/ Used cars
- Supermoney Car loans–Supermoney.com The best Personalized Auto Loan Offers From Leading Lending Partners
- Way.com : the best for Refinance
- LoanMart US – The best for Title Loan Applications
- Personal loans : Best for Up to 5K loans
- LoanPioneer : Best for Vehicle Repairs Loans
- Bad Credit Loans : Best for Bad Credit Score
- FuturaCredit: – The best for loans Up to $25K
- Light stream car Loans : Simple and Uncomplicated loans from $5,000 to $100,000
Tips to Flip car for Profit
1.Choose your niche (for me it worked quite well with Mercedes and Audi). Cars that YOU would drive, that YOU like. This helps with the psychological aspect of selling.
2.Give your clients a good product. ALWAYS make the car better than when you found it. Start with buying cars that have only minor issues (need new spark plugs or o2 sensor). Fix all the small issues. Replace belts, ALWAYS redo the oil+filter, air filter & spark plugs. Wipers.
3. Add value. Fill the tank with gas. This immediately elicits a positive view of the vehicle and an inferred feeling of efficiency and confidence.
4. Be personable, honest and nice. If you sell people crap then you have to live with a bad conscience and sleep with one eye open! Don’t do it.
5. Know your audience. I often purchased stick-shift (manual) cars because I knew young men between the ages of 19-27 loved them. I knew how and what to advertise. I spoke their language. I often switched out the shift-knob and threw in other shiny things I had laying around in the car too.
6. Become a Car expert. Research the car and know everything about it. I knew all the power-to-weight ratios of all the cars I bought and highlighted this. All this information is readily available on the internet. Simply type in the make+model+year and voila! You’re an expert.
7. Clean and Detail the car like nuts-you will get way more money!
8. Craigslist it baby. Lots of pics
The Best Used-car Websites to purchase/Sell your car
List of Best Used car Websites
- Edmunds.com : The Best Over all -The best Up-to-date pricing & Reviews
- CarsDirect : the Best basic Online Car Purchase in the Market
- KBB.com : Best to Flip cars( Buy -Fix-sell)
- Cars24.com The best for American made Cars
- Classiccars.com: Best for Vintage /Classic Cars
- Cars.com : The best one-stop shop for American made cars
- Newcars.com Best in the market for New cars Purchase
- eBaymotors.com : The Best for Car Auction
- Carfax.com : The best to get History report + Buy Used cars
- carGurus.com : The best for Cheap cars
Things to consider while flipping car Business
Buy a nice car for a low price
Buy a nice car for a low price be it auction, trade-in, or from the loyal customers- Buy an Old Luxury car ( Like Mercedes Or Audi Or even BMW).T
his is because many people wants to buy Luxury cars But most of them can not Afford. So ,Flipping can be useful for them to get a Luxury and you end up with Profit.
Make it look as new as possible
(car dealers call this ‘front line ready’).
5 Easy Ways to Make Your Car Look Better
GIVE IT A GOOD CLEANING
The easiest answer is not always the best.
Removing all the trash and giving it a good cleaning will improve the appearance of the inside while allowing you to assess what needs to be in there. Less loose things in your automobile can lighten it, allowing it to run better and perhaps making it safer.
Furthermore, having your car’s exterior properly cleaned (ideally with a cut and shine to remove any scuffs) will assist to make it seem younger than its true age, as well as covering any problem spots with fading paint or deep scratches.
REPLACEMENT OF FACTORY FEATURES
If your car’s audio unit did not come with at least an AUX or USB input when it was new, it may be worth upgrading to an aftermarket head unit, not just for yourself, but as a selling factor for a used car, such as to a young driver who does not want to listen to AM radio.
If you want to spend a little extra, installing aftermarket speakers is a good option.
In terms of other used vehicle purchasers, cruise control is becoming a common feature on even the most budget-conscious models, and if you didn’t check the box when your car was new, or it simply didn’t come with cruise control, you can add it as an aftermarket option for a fair fee.
DISPLAYING The Car LOOK
If you have a performance model or an off-road vehicle, decals can be a cost-effective method to improve the profile of your vehicle without spending a lot of money on a sports kit or lift kit.
Professionally placed decals, frequently from the dealer, may distinguish your automobile different from the similar model next to yours on the road, rather than your usual My Family stickers.
Tinted windows may frequently add value to an automobile since they are an instantly apparent alteration that also provides the benefits of decreased glare and heat in the interior.
It is preferable to have tint placed by a reputable service centre that will not instal unlawfully dark tint and can guarantee craftsmanship.
WHEELS CAN BE PAINTED to Look Classy and Unique
When it comes to the appearance of your automobile, its wheels are frequently a dead giveaway of its age.
Factory alloys typically change design with each model upgrade, but the flagship models typically have a machined or coloured alloy option – if you can’t afford to change your alloys, painting them (as some factories do to their alloys) to refresh the black or silver that may have scratched or faded will update your wheels without the expense of four new alloy rims.
UNDER THE HOOD CLEANING
By replacing the standard air intake with a new cold air intake, you may possibly save fuel and have a calmer ride.
When combined with a replacement muffler to enhance airflow throughout your vehicle, you might end up with a higher performing vehicle and a lot happy driver.
The Best Car Insurance Websites for your Luxe car
List of Best AUTO Insurance websites
- Geico.com : The Best Over all and for Most Drivers
- USAA.com : The Best basic Insurance for Military people.
- Statefarm.com : Best Cheap Insurance
- Allstate.com The best To take Advantage for Clean Drivers
- Progressive.com: Best for Bundling your car Insurance with Other Insurances
Market and sell the car (description, photos and ads)
Prepare for the sale:
After you’ve set a time for the buyer to come out and look at your automobile, make sure you have everything prepared to make the transaction as easy as possible.
Prepare all keys, service paperwork, and the Carfax. Keep towels and rags on hand in case the buyer wants to inspect the vehicle. Finally, have the bill of sale available so that it may be completed promptly, as well as the title.
Remember to make the transaction as simple and painless for the customer as possible.
Don’t appear desperate, don’t hide anything, and, above all, be kind. This will transform the sleazy impression that most people have about buying a car, and believe me, it will go a long way.
Take high-quality photographs
First impressions are everything, so make sure your posting images are high-quality and accurate.
- Don’t flaunt your car’s shortcomings, but don’t conceal them either. The buyer will check the vehicle in person, so if there is a large ding on a door, simply be honest and disclose it.
- Don’t attempt to be shady and hide it. Make sure the photos reflect the features of the automobile, as well as any particular options it may have.
- If the tyres are new, show them off. Make sure your images entice potential customers.
Do some Market Price investigation
Look at other similar automobiles for sale on Craigslist to get the average listing price for your vehicle.
If you want to sell your automobile quickly, list it at the bottom of the market. Don’t overprice your automobile until you know for a fact that it’s superior.
For pricing comparison, use the year, mileage, and features as the primary criteria. If you acquired the automobile for less than the auction price, you’ll earn money even if you price it cheap.
Make a Craigslist, Gumtree(Australia) or Facebook Marketplace listing.
Use a descriptive title that includes the year, colour, make, and model of the automobile, as well as as much detail as feasible in the description.
Make sure to display any service records and Carfax reports so that customers are confident with their purchase.
Display the high-quality photos you shot and explain any problems you discovered. Your listing will once again entice purchasers.
Don’t be scared to include your phone number.
The majority of Craigslist users do not want to deal with sluggish emails.
If you don’t want to take calls from random individuals, specify in the auction that you only want people to text you.
If they call, don’t pick up and instead text back. This is how I do the majority of my discussions.
Other than flipping houses, flipping automobiles for profit is unquestionably one of the most profitable methods to generate money.
The investment is a little more than most individuals are comfortable with, but the benefits outweigh the costs.
Make sure to take your time and carefully follow these procedures to avoid making a mistake.
Of course, if vehicles aren’t your thing or you can’t afford one right now, there are lots of other items you can sell for money (Legos, Bitcoin, Clothes, Thrift Store Items, Dollar Store Items, and more).