Have you ever been to a car auction or any other auction for the matter? It is really intoxicating, but it’s not the only reason why you should consider flipping cars for profit.
To flip a car, simply buy an old and ugly SUV, hatchback or sedan, do a few fixes and paint job, and then sell it a couple weeks later for a $3000 dollar profit. It can be really rewarding in many ways, not just monetarily.
First reason: Flipping cars for profit is a fun way to earn a little extra
We could all use a little extra cash in our pockets, right? But if you must work extra hours at a side gig, why not do something that you enjoy? If you’re into cars, then buying, fixing, and reselling a car for profit is one of the most exciting and fun ways to earn money.
Like with any other job or earning method, it will take practice to reach to your full earning potential. The best part about flipping cars is the journey getting there, not just the final destination.
Reasons it is fun to flip cars
There really are only three steps in buying and selling cars. If you’re like many others reading articles on our blog, you’ll probably find all of these steps seem more like fun than work.
- First you have to find a great car for flipping. It is deep in our roots to hunt for a good deal. This is also the case when we talk about finding the perfect car for you to fix and sell for a higher amount.
- The next step is cleaning the car and fixing any mechanical or cosmetic problems. If you are passionate about cars and really love working with your hands, this might be the best part.
- Finally, you’ll have to advertise and sell the car. Find a happy buyer and leave with some cash in hand. What’s not to like?
Second reason: It has never been easier finding sellers and buyers
The internet has made a whole lot of things easier for us, including finding a used car to buy or finding a buyer for a used car you’re selling.
Great places to buy and sell cars are Cars.com, AutoTrader, Hemmings and Facebook Marketplaces, and many more. When you are looking for a good purchase, we recommend that you check out The Largest Government Car Auction Service, where there often are some really good deals.
All in all, there are many great places online to find buyers and sellers, and with the few we have mentioned here, we are just barely scratching the surface of opportunities for you to go and find the great match.
Third reason: You can earn good money surprisingly quick
It is possible to earn money fairly easily when you follow the three steps above the right way. It will, of course, not be equally fast every time. Especially the first times you do it, you’ll have to learn a lot of small details to perfect your process for earning quick cash through flipping cars.
When you’ve mastered it, you’ll be able to earn good money this way.
When you get started, we recommend that you keep track of two things. First and foremost, it is important to keep track of all the expenses. Of course, you’ll know how much you bought the car for in the first place, but there are other costs that you should keep track of as well. For example, a car wash and any parts you replace will cost you something.
On top of that, it is a really good idea to keep track of the time you spend, both finding the car, repairing it and in the end selling it. This way you’ll get the full picture of how much profit you made you compared to what your time investment was.
Fourth reason: It is easy to get started
If you have a little cash laying around, it is fast and easy to get started. Make yourself a budget, and then go hunt for a car. With a little luck, you might even find a car that doesn’t need much work, before you can sell it for a higher amount.
The only things you need are internet connection, so you can find a deal online, a spot to work on the car and a little will-power for wanting this to work.
When you’re done reading this article, you can go straight to Gov-auctions.org, AutoTrader, TrueCar or similar to find you first car to flip. And when you have improved it, head somewhere like Craigslist and sell it for a higher amount.
Next read: How good it is to flip cars as your next career.
Many reasons to flip cars for profit
There are many reasons to start flipping cars. You can gain some pretty good profit and it is easy to start. Most importantly for most of us, it can be a lot of fun earning some extra cash this way, compared to other side gigs or even full-time jobs.
Buying a used car?
Make an informed decision with an Instant Vehicle History Report
FAQ about car flipping
Where do car flippers find cars?
Public auctions are a great way for people without a dealer’s license to find vehicles without spending too much. Public auction vehicles can include those that have been seized by the government for back taxes, liens or forfeitures and/or abandoned cars.
Craigslist is another great place to find good deals on cars, especially if the seller you are dealing with prefers private sales over bidding at public auctions. Craigslist is an online classifieds site that is free and has a lot of cars available for sale. Craigslist’s other advantage is that no one has to pay a portion of the sale price to a dealer or third party.
Just be aware that there are many scams online, especially on Craigslist. When you are looking to buying or selling a vehicle online, it is important to be informed and cautious.
What should I avoid when I am bidding at a car auction?
When you are at a car auction, it is important to know the bidding rules well before hand. Then set a budget, and don’t allow yourself getting into a bidding war above this amount. Remember not to get too stressed about not getting a specific car at the auction, since there are many more to come.
Read about the best cars to flip.
What should I avoid when I get into car flipping?
A lot of people focus on buying used cars at bargain prices. While this could work if you live in a city where many people drive older models, it doesn’t function so well in rural areas where brand-new cars are more popular.
When you want to buy a car for flipping, be extra careful when dealing with bargain priced cars on Facebook, Craigslist and eBay, since there is a risk, it could be a person trying to scam you.
The best way to obtain the greatest return on investment is by purchasing new cars that are still under warranty. These cars typically cost significantly more than their preowned counterparts, yet provide you with a guarantee against defects.