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| Automobiles Auctions > Articles > Flipping Cards |
Flipping Cars Purchased At Auctions
If you're knowledgeable about and interested in cars, and the car sales market, one potential method of turning your expertise into cash is to flip used cars:
The fundamental idea is simple - you buy a car which is being sold for less than its potential retail value, and then resell the car to somebody else for its actual retail value. If you think about it, this is exactly the model followed by many used car dealers.
Of course, there are risks:
- You might purchase a used car for more than its actual value
- You might purchase a lemon or otherwise poor quality vehicle, which you are then unable to sell.
Anyway, the key point to avoid getting stuck with a poor unsaleable vehicle is: Don't buy vehicles on the spur of the moment, as a result of getting excited at an auction or other sales event! Always do your research properly, before making a purchasing decision!
Assuming you are interested in getting involved in this type of business, what would you need to get started?
- A source of affordable used vehicles:
Used car dealers of course have people bring in vehicles that they want to sell - but if you are working independently, auctions (public auto auctions, police and government auctions, seized vehicle auctions, salvage and insurance auctions, and perhaps wholesale auctions) could be the best place for you to get suitable vehicles. Generally, in many auctions, sellers are looking for a quick sale, and at least some vehicles are sold relatively cheaply.
- Funds
You will need enough money to pay for the vehicle if you win the auction! Auctions will often require you to show that you have sufficient funds available before allowing you to bid.
- Paperwork
To participate in a vehicle auction, you will most likely be required to register before bidding. You will probably be required to sign a contract. You might also need a bidder's pass to enter closed auctions. And if you want to drive the vehicle away, you will you need to take your driving license with you!
Of course, being a diligent and cautious person, you will have carefully considered this issue before purchasing a car for flipping in the first place.
So how do you sell a vehicle purchased at auction?
If you don't already know potential buyers, you will need to advertise offline and online.
You also need to bear in mind that the sales process does take time and money - so if you want to make a profit from the transaction overall, you need to have enough profit in the sale to cover these costs and more.
Finally, if you are embarking on this kind of business, you need to keep all the paperwork straight:
- Make sure that you are fully up to date on
laws in your state/country that apply to motor vehicle sales.
This includes any laws (such as licensing) that may apply in your jurisdiction to
starting/operating an automobile trading business.
- You will alsowant to keep receipts and detailed financial records, needed by you (or your accountant or professional advisor) to file taxes and other necessary financial records with the government.
Below are some books about flipping cars.
Related Links
Here are some related links and websites:
- Check Your VIN
Offers vehicle history reports complete with over 60+ problem checks for a one-time fee of $12.99 per report.
(Advertisement)
- How To Buy Cars At Auctions
With The Present Economic Crisis Theres Never Been A Better Time To Buy Cars At Auctions! This Website Will Provide You With The All Tools You Need To Benefit From The Thousands Of Vehicles Being Sold At Rock Bottom Prices At Auctions.
(Advertisement)
- How To Flip Used Cars For Profit
Used Cars Dealer Of 35 Years Sheds Light On How To Flip Used Cars To Make Up To 6 Figures Profit.
(Advertisement)
- How To Start And Operate A Profitable Used Car Business
A Licensed Dealer Exposes The Secrets To Getting A Dealer License And The Easiest Ways For You To Succeed In The Used Car Business. Discover How To Buy At Dealer Only Auctions And Quickly Turn Into Profits On Craigslist And Other On-line Web Sites.
(Advertisement)
- Inspect Before You Buy
ASE Certified Automotive Technician Teaches You How To Properly Inspect A Used Vehicle.
(Advertisement)
- The Lazy Way To Buy And Sell Cars For Profit
(Advertisement)
- The Official Auto Dealer License Manual
The Complete Guide To Getting An Auto Dealer License.
(Advertisement)
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