Have you ever purchased a car for a deal of a price? Feels pretty good doesn’t it? You can drive that car for quite a while and still get your money back out of it, even if it’s been a couple of years. What if, instead of holding onto that car, you flipped it instead? You could earn an easy thousand bucks a month if you continually find the right deal.
Not For the Squeamish
Right off the bat, I know this sounds like an amazingly good idea, but let me tell you something, you won’t win all the time. Cars are a gamble. It may seem like they are running great when you make the purchase, but within a few days the transmission could start slipping and suddenly you’re in the hole a grand instead of coming out on top with money in your pocket. If you do your homework, you’ll win much of the time. Just don’t get sloppy with your research and I believe that you’ll do just fine!
What’s In Demand?
Before you just start buying random cars that you think might be a deal, it’s best to find out what types of used cars are hot right now. If you’re reading this and gas prices are still hovering around $4.00 or more, then it’s pretty safe to say that a car with good fuel efficiency is your ticket, especially if it has some style as well.
What’s a Good Price Range?
In this game, you’d like to get paid in cash without getting the banks involved. It’s just easier that way. For this reason, I would suggest keeping your selling prices below $5,000, which means that your buying price should be under $4,000 (to make that extra grand in a month).
How to Find the Deals
There are a few tips and tricks to finding a bargain of a deal on a vehicle. The absolute best one that I’ve discovered – don’t be afraid to travel. I’ve recently been looking for a Honda Civic Hybrid. In my area, it’s extremely difficult to find anything decent for under $7,000, but if I switch my search to state of Florida, I can find the exact same car for about $4,000 all day long. Between my plane ticket and my gas to get back, it only cost me about $250 to get it, so I’m still $2,750 to the good!
If you’re not big on traveling to an unknown territory, there are a few other tricks that could save you a few hundred bucks on a car:
- Call on those cars without a picture on Craigslist – there are a lot of people that never even look at a car without a picture in the ad, which means that the seller is not receiving a lot of phone calls. This leaves you in a perfect position to negotiate a steal of a deal.
- Know what you’re looking for and jump on it – if you know the make and model of the car you’re looking for, I’d suggest that you search for a deal daily. It normally doesn’t take too long to find that hot price, but you’ll have to be willing to jump on it immediately. Don’t forget your cash!
- Money talks, especially green paper – sure, you can go look at a car and pay with a check (if they let you), but for some reason, a wad of hundred dollar bills really motivates that seller to give you a bargain. Don’t be afraid to haul out the money and show them what you’re willing to pay.
- Look for a diamond in the rough – some people put their car up for sale without bothering to take it through a car wash or vacuum the inside. It makes it a lot less desirable for most, but if you’re able to see the potential in that car, I would suggest that you buy it, clean it up, and put it up for sale again. A clean car can typically get at least 10% more than a filthy one.
Shine That Car Up And Sell It
Selling a car really isn’t that difficult. Just let the car speak for itself. If the exterior has no dents or scratches and the interior is fairly clean with no tears, then you most likely won’t have to hold onto that car for long.
List the car for about $500 more than what you’re looking to get out of it and let the buyers negotiate. If they can talk you down $300, they are going to feel like they got a deal, but in all actuality, you actually just got an extra $200 out of the sale. So, instead of earning $1,000, you just got yourself an extra $1,200!