My sister-in-law was hosting me at her house the other day. As I drove up to her house, I noticed that he had a BMW parked on their driveway. Since I met him, her husband has always been the kind of person who is always looking for new ways to make money.
I approached him as he came out of the garage and greeted me. I asked him questions about the car. He told me how he bought it and that he plans to sell it again. He said that the car was already listed on Craigslist and that someone was already coming to view it.
He explained to me that he was a friend who learned about selling and buying cars from another person. He was adamant about the opportunity, having sold three cars and had significant cash before the beamer.
He is a good guy, and we sat down to discuss the process. Because the opportunity looked like a money-maker, I let him speak.
I’ll try to explain the process of buying and selling cars for profit.
Start-up Funding
Before you can get into the business of selling cars, you need some capital. The average amount you’ll need to start your business is $3,000. This is because you have a greater chance of finding a car that is in good condition for the price.
Which online classified ads site should you use?
Once you have the start-up capital, you can go to the classifieds to search for deals. According to my sister-in-law’s husband, Craigslist is the best place to search for a car. Craigslist has one of the most user-friendly online classifieds. There are many people who sell their stuff there. Craigslist is constantly updated, so you can be sure to find something good to buy.
Which is better – a dealer or a private owner?
After you have chosen the car that you want to buy, the next step is to determine if you are dealing directly with the dealer or the private owner. I prefer to deal with a private owner over a dealer. Because you’re talking to someone who is trying to sell their car, a private owner will be more helpful. You might be able to negotiate a lower price than the private owner.
On the other hand, the dealer has no special interest in getting you a great deal. They may claim they are looking out for you, but they don’t have any personal stake in the deal. It’s like pulling teeth when you negotiate a price with dealers. They will not let you walk away with a lower price, if at all. They will always get you in some way or another.
Never pay the online advertised price.
This is where most people get confused. When you negotiate well, it is a good thing. If you are looking to negotiate a lower price, don’t give low ball numbers. You will likely not be able to get the car at that low price because the owner will become defensive. Trust me, and the owner has had many people view his car and try to lowball him. Do not do this.
You should negotiate with the owner, but not be too demanding about the price. If the car you are interested in is valued at $4,000, the owner may be willing to negotiate the price down to $3,000. Negotiate in 500-point increments.
If you are not happy with the price, then shake hands and decline the offer. In case they need to find someone, give them your number. If things don’t go your way, do not take it personally. You can always come back and try again.
You bought the car now.
Once you have found the car that you like, the next step is to wash and clean it thoroughly. A clean car is more likely to sell than one that has been neglected. When trying to sell a car, the first thing a salesman does is present the vehicle. The same applies to you. You must do the same thing.
Once all this is completed, you’ll need to take nice photos of your car. At least four photos of the car are required. You will need to take two photos of the exterior and two of the interior.
You will now go to Craigslist to place an advertisement for your car. You will need to set up an ad and include details such as mileage and maintenance. People want to know what they’re buying, especially if they’re going to spend several thousand dollars on it.
Include photos of the clean car and a number so they can reach you.
When selling a car, make sure the asking price is reasonable. You should not sell a car worth $8,000 if it is truly worth five grand. Except if the car is a Beamer or an Audi, you won’t get any calls. If it is a late model brand, be realistic about the price.
If you do it correctly, buying and selling cars can make you money. No matter how many people are doing it in your area, there are still enough cars for sale each day. Make some money.