Car flipping is not as talked about as property flipping, yet it is arguably easier for most people to do. A car costs a lot less than a house, so this is an accessible idea for most people. The concept is relatively straightforward: buy a car, sell it for a profit. Sounds easy, right? Well, it can be – but only if you know what you’re doing.
Most people assume it’s a simple case of buying a cheap car, making improvements, then selling it on. That’s a very basic view of proceedings, but there are many ways you can slip up while doing this! So, here are a few vital tips to help you flip a car for a big profit:
Find a desirable car
You can argue that this is the most important step in the entire process. If you get your purchase wrong, there’s no way of making any money. Yes, you want to buy a cheap car, but that’s not all. Too many people go out and buy the cheapest car they can find, only to wonder why it isn’t selling. You’ve made some cool upgrades, but nobody wants to take the car off your hands. Why? Because it’s not a desirable vehicle at all. Nobody cares about it, and they can probably find cheaper alternatives elsewhere.
Therefore, you have to find cars that people are willing to buy. A lot of wheeler-dealers will buy older and more unique vehicles – cult classics if you will. These cars are popular amongst car enthusiasts and collectors, so there’s room to make a profit. Things like sports cars are also highly popular as people love to own them. It’s quite easy to make a profit by getting your hands on an old sports car, then upgrading it with some modern comforts.
Get the car for a bargain price
Once you’ve settled on a desirable car, you need to buy it for a bargain price. Ideally, it should be as cheap as possible. This requires a great deal of haggling, but you need to get a car that has room for a profit. It’s a good idea to view the car, then consider what changes you’ll have to make to it. From here, you can work out a rough estimate of the costs, which gives you wiggle room for profit.
Typically, you are looking for cars in quite a bad condition. They should have things wrong with them, which is why they’re available for a low price. You’ll never make money from buying a brand new car and trying to flip it – it just won’t work. Realistically, you want a car that’s got fixable issues, making it much cheaper than the others on the market. For instance, a car sells for £500, while identical ones are being sold for £3,000. This gives you a lot of wiggle room to make changes and sell it for a profit.
Make valuable upgrades
When you have the car, it’s time to make upgrades to it. The number one rule is to take care of any essential things first. This relates to problems with the engine, brakes, etc. If the car has safety concerns or parts that don’t work, they must be fixed. Right away, the car has grown in value – it’s gone from a faulty vehicle to one that’s road-ready!
Next, you can consider any cost-effective upgrades that add more value to the car. Think about what people will be interested in the most. Things like wheels and tyre packages are always a good bet in this situation. Why? Because they improve the way a car looks and operates. A new set of wheels can stand out, as well as make the car better to drive. Other ideas include changes to the upholstery – make it look better and more desirable. Of course, a simple change can be a new lick of paint – it can take a horrible car and make it a lot better. For example, if your car is bright pink, hardly anyone will want to buy it. But, if you respray it black, the buyers will start lining up.
Always work out the cost of improvements before you do them – ideally before you buy the car. You have to keep track of everything so you can factor all the expenses in when selling the vehicle.
Try to do things yourself
Obviously, some improvements will require special assistance. However, if you understand cars, you can try making a few adjustments yourself. Even something as simple as cleaning the car from inside to out will make a difference. It makes the car look and smell nicer, which can encourage someone to buy it. Do this yourself instead of paying someone to do it.
Effectively, the more work you do on your own, the less money you spend on improvements. Thus, this widens your profit margins and helps you make more money.
Sell your car
At this point, your car is ready to sell. Take loads of high-quality pictures and do a professional job of advertising it online. Highlight all the changes and really emphasise how great the car is. If you chose a desirable vehicle, there should be lots of interest in what you’re selling. When it comes to setting the price, it’s good to set a high one, but be open to offers.
Most people will try to haggle, so a higher price tag gives you more wiggle room. Ultimately, you have to agree on a price that still yields a profit. The more interest there is, the more you can sell the car for as people will be bidding against one another for it. In the end, you sell the vehicle and pocket a nifty profit.
Follow these steps to flip a car for some extra cash. It’s worth mentioning that there’s no guarantee you’ll always make money. Sometimes, you may make a loss, but other times the profits more than makeup for it. Ultimately, it all comes down to choosing the right car for the right price.