Do you love cars, or is passionate about modifying it? You can convert this passion into a source of earning. You need a few hours of a day to make money by flipping cars.
Check out the content below and learn – how to flip cars?
What does Car Flipping mean?
You must have heard about flipping a website; car flipping is nothing less than that. To flip a website, you buy it at less price, and after doing some modification, you sell it 9-10 times higher than the cost price.
Here, you purchase an old car at a low price, invest money, and spruce it. And finally, sell it at a higher price to earn a minimum of 25 to 35% profit.
Investment and Profit from Flipping Cars
You don’t require billions to start it. You need $3500 to $5500 to start the business. You can earn up to 25% of profits per flip.
For example – If you buy a car for $2400(including repair cost), you must target the selling price of $3200.
Moreover, by sprucing expensive cars like BMW, Mercedes, etc. you can make more money.
How to Flip cars?
You must be thinking, “how to flip cars”? Check the following steps:
Step1: What type of car should you flip?
It is essential to find the right kind of car.
- Firstly, if you are buying luxurious cars like BMW, Mercedes Benz, etc., it can take some time to sell. But the profit will be very high.
- An ugly car soaked into mud and dirt is better. By using TLC, you can change it to a new one.
Step 2: How to get the best bids?
After deciding the type of car you want to buy, it is time to find the best deals.
- Craigslist is your place to find the best deal.
- Some of the best deals you can find from buying lawn cars. You can find these cars in your neighborhood easily.
- Also, public auctions can get you the best deal. Attend auto auctions.
Step 3: Examining the car before buying
However, it is necessary to examine the car before buying it.
- However, check the car thoroughly – car exteriors, interior, engine batteries, etc.
- Always check the possession of the car. Make sure the vehicle is not stolen or under the bank’s possession.
- Check the miles of the car. Always buy a car with 125000 miles.
Step 4: Estimate the value of a car
- You can use KBB to estimate the value of the car you are buying.
- You will not become the pricing expert overnight. With lots of practice and experience, you can learn how to estimate the value of the car.
Step 5: Negotiation
- However, negotiation can get you the car lower than the sellers established value.
- Always offer cash to the seller; there are chances that he/she will sell your car $300-$400 cheaper.
Step 6: Final stage of purchasing
- Check all the documents related to the car like- its brand, mileage, legal documents.
- Never forget to take the signature of the seller on the document.
Step 7: Prepare the car for sale.
- Estimate the overhaul cost before starting the flipping.
- Check if you will do the conversion personally or need a mechanic to do
- it for you.
Step 8: Fix the car to increase its value
- During sprucing up the care, you need to think and plan carefully.
- Transform the interior of the car, like replacing the old mates with new ones.
- Fix small things like batteries, headlights, etc. can bring a significant change in cars’ appearance.
Step 9: Car Price for Sale
- Keep the profit margins in mind while setting the price of the flipped car.
- You can say any price while selling the car, but it all depends on the buyer.
- Always telly your prices by referring to the KBB guide as most of the customers will check the car’s price there.
Step 10: Sell the car and make money
- The sale of the car depends on your presentation while explaining the features of a car to buy.
- Always tell them the good things about the car first, like – mileage, engine, etc.
I hope this article has answered your question on how to flip cars? Flipping a car is all about buying a car at a low price and selling it at a high cost. Therefore, with a small investment in the Car Flipping business, you can earn huge profits. You can start earning by flipping your car and slowly convert it into big business.