Our neighbor Jose doesnt speak much English, which makes it tough to live here in northern Michigan. Despite that, he made a profit of over $30,000 last year selling cars out of his front yard. Its true that hes a mechanic, and that helps, but it isnt the key to his success.

The Key To Buying And Selling Cars

To contruct some cash selling cars you have to know the worth of cars. Knowing which cars everybody most want might help too, but any car will sell for some price, and you need to know that price. Drive around looking at cars for sale, or cars just sitting idle in peoples yards. When you can easily look at a car and guess how much it will sell for, the rest is user friendly - just offer $1000 less. You will eventually buy a car, and sell it for a profit. Then you can and repeat the process.

To beginning learning about the used car market, you can watch the classified ads, keeping in mind that the asking prices are not the sales prices. Take notes. Used car pricing guides, such as the "bluebook," almost always show inflated retail prices. Use them, but assume you will sell the car for the "loan worth", or average wholesale price. In any case they are great to show to your prospective buyers.

If You Know Nothing About Cars

What if, like myself, you know nothing about buying and selling cars and dont want to learn? Find a friend who knows cars and goal to build lots of funds . For example, I gave my brother $950 to buy an old truck because he said it was value more than twice that. Sure enough, he sold it in a week and returned my funds , plus half of the $900 profit.

I gave another friend $3200 to buy an old plastic-bodied car. He paid $2200 for it, and put a transmission in it, along with other minor repairs. I didnt understand what a Corvette was, why anyone would want a car from 1976, or where to go to get a transmission put in for $800. Fortunately, my friend did.

Less than two weeks later he sold the car for $4200 and returned my funds plus my half of the profit: $500. Ive done this a number of times now with friends who understand more about cars than I do. Are you cash poor? A short term cash advance on a credit card would have cost me about $50, still leaving a profit of $450.

Here in Michigan, the law says you absolutely need a dealers license if you sell more than six cars in a year. You could have six titled in your name, six in your friends title , and six in your wifes name. That gives you a great chance to see if you like the business enough to get a car dealers license. Check the relevant laws in your state.

The key to buying and selling cars for profit is understanding - but you may get that from a friend.