Flip Used Cars for Cash - Part 1 

 

  How to Flip Used Cars for Money

By Sam C P


There are a lot of ways to make extra cash, and finding the lucrative ones is just a matter of doing your research. Read on if you want to know how to flip used cars, which can be a great way to make extra cash when done right.

The government regulates how many cars unlicensed citizens buy and sell in any given year, so learning how to buy and sell many cars legally - without facing costly government fines - is your first step.

-Build Up Capital
You need savings to flip used cars. You may need to have a significant amount of money saved up before you can do it, and also have to pay fire licensing. Start-up costs for flipping cars usually start around $10,000. Don't be surprised if it ends up costing you more. You know what they say: you have to spend money to make money.

-Get A Dealer's License
Licensing rules vary from state to state, but in general terms, getting licensed to buy and sell cars requires taking a course and passing a test. Without a dealer's license, buying and selling any significant amount of cars is illegal.

-Find A Place
Where are you going to sell your cars? From your home, a used car lot, or some other location? If you plan on having more than a few cars on hand at once, where will you store them? Will they be displayed?

-What's Your Marketing Strategy?
Every successful business has to have a plan. What are people looking for in a car? How can you provide it to them while still making a profit for yourself? Do your research and find out what automobiles are in demand, and what aren't. You will save yourself from making bad investments, and please your clientele with the popular models.

-Build Your Inventory
Once you have your dealer's license, purchase cars at wholesale rates. Now you can sell them at a profitable retail price.

-Know Your Stuff
Go to private car auctions. This will not only help you learn about your industry, but allow you to bid on and purchase used cars at below-market prices. You can find out the times and places for these auctions online. (The internet is a great resource for buying and selling, by the way.) This is a privilege only licensed dealers have, so take advantage of it. You can also submit closed bids to new car dealerships, another privilege that only licensed individuals have.

-Advertise!
Invest in business cards, classified ads online and in the papers, and flyers around your neighborhood. Create a website and social networking accounts for your business so that people can follow you on Facebook, Twitter, and other sites. You can give deals to your followers and fans! This tells potential customers that you are open for business! If they don't know you're selling, they can't come to you when they need a used car.

Sam helps people find ways to make extra money. He specializes in flipping used cars for profit.