Make Money Selling Used Cars

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used car businessThe used car business is a multi billion dollar industry and many people are making tons of money buying and selling used cars.

With the average cost of a new car surpassing 20 grand many people simply cannot afford to buy new.

If you want a piece of this market then you need to be willing to learn the game. The rewards can be substantial for all of your hard work.

I’ll tell you it’s not easy selling cars when you’re first starting out. In fact things can seem overwhelming in the beginning but once you get the momentum going the sky is truly the limit on how much you can earn.

The good thing about selling cars is that you don’t have to quit your day job. For example, you can buy a really cheap car, say for 500 dollars, give it a nice wax and then sell it for a grand.

You’re not investing a lot of money and even if you don’t make a profit the lessons learned are invaluable.

You may not make a lot of money in the beginning but once you start learning from your mistakes everything will start falling into place.

Follow these steps and you’ll be on your way of becoming a salesman like a pro.

Step 1: Search for Cheap Cars in Your Area

Look for a car that’s around a thousand dollars. You want to start out slowly and invest as little as possible in the beginning.

Buy a car that has a solid reputation such as a Honda or Toyota. Most people searching for cheap cars will not focus too much on the exterior. They will want a reliable car that can take them from point A to B.

Look locally on Craigslist or eBay for your car. The last thing you want to do is buy a car for a grand and then have it shipped across the country for seven hundred dollars.

If you need help buying a car then you can download my free ebook which explains the basics of car buying.

Step 2: Negotiate the Selling Price

Once you’ve found a car that is in decent shape and is within your price range it’s time to negotiate with the seller.

Remember, the seller has already marked up the price of the car because he/she knows nobody pays sticker price.

Ask for past service records and especially for the timing belt. If the belt has never been changed then the car is not worth buying. The average cost of replacing a timing belt ranges from 400 to 600 dollars.

If the seller is asking for 1500 dollars then offer roughly half the amount, or around 800 dollars. The seller will most likely not accept the offer but it can be a good starting point for negotiations.

Point out all the flaws in the car. It’s best to write down the flaws on paper to show the seller.

Remember that you have to register and title the car in your name which is going to cost extra money. Keep this into account when negotiating.

Step 3: Prep the Car

After buying the car it’s time to give it a thorough makeover. Making a good first impression to your customers is key to selling well.

Clean the exterior and interior as much as you can. If the floor mats are worn then go to Walmart and buy new ones. It’s amazing how new floor mats can sparkle up an interior.

If the car is extra dirty then you may be better off getting it professionally detailed. Professional detailers charge an average of 150 dollars but the job they do is extraordinary.

You’ve probably heard the phrase that a good salesman can sell ice to eskimos. Learn as much as you can about the car you’re selling. This will make you look professional and make you feel more confident in the process.

Step 4: Post an Ad

It’s time to put your marketing skills to the test. Start by posting an ad on Craigslist. Be descriptive as possible about the condition of the car.

So how much should you sell your car for? A good fifty to sixty percent markup should do just fine.

If the total cost of the car is 1300 dollars (including tax, title and registration) then advertise the car for 2000 dollars.

A four to five hundred dollar profit is what you should be aiming for in this case.

Don’t worry if you don’t get prospective buyers right away. Patience is key. If you don’t find any luck posting online then another good method is to make use of bulletin boards.

Lessons Learned

It doesn’t matter how small a profit you make on your first sale. The lessons learned are invaluable for you to grow as a professional car seller.

Write down the mistakes or things you could have done better on paper.

While I generally don’t recommend buying from auctions, there’s a good website that shows you how to buy cheap cars at auctions and flip them for a hefty profit. The site teaches you the things to look out for and how to land great deals.