|Image Courtesy of Flickr|
Many people are able to make a sizable profit by flipping cars. To flip a car means to purchase a car that you can make a few improvements to and then resell for a profit. There are certain steps you should take when you flip a car.
Find a Car
Certain kinds of cars are easier to flip due to demand and profit margins. Fuel efficient cars and work vehicles, such as vans and trucks, are the easiest and most profitable to flip. Look through classifieds and listings both online and in your local newspapers for these kinds of cars. Compare sale prices with the fair market value for the car in its current condition. Make sure the asking price is realistic for the repairs and improvements you are planning.
Check the Car
Once you have gathered a few good leads, check out the cars you are thinking of purchasing. Always carefully inspect a used car before putting down a deposit or initiating a deal. In most states, private party used car sales are considered as-is, so any issues you fail to notice are not cause to get your money back.
Buy the Car
Make an offer on the car you decide to flip. Estimate in your mind how much you are going to spend improving or repairing the vehicle and make a reasonable offer to the seller that leaves room for profit. When negotiating, having the entire amount you are willing to pay on hand in cash can convince a hesitant owner to sell for less.
Plan & Execute Repairs
Common easy projects that can greatly improve the resale value of a used car are paint job touch-ups, dent removal and a deep clean of the upholstery. Before taking on any of these aesthetic projects, make sure the car is running properly. A quick tune-up, including a check of the battery, spark plugs and essential fluids, should be done on the car you are trying to flip.
Advertise & Sell
After fixing up the used car you purchased, advertise it for sale both online and in newspapers. Also put a sign in the car’s window to indicate to anyone passing by that the car is for sale. Most cars, if priced correctly and well presented, should sell quickly.
Research and small repairs make it easy to flip a car for profit. Pay attention to pricing and trends in order to make the most of your next car flip.