Are you looking to start flipping cars?
You’re certainly onto something that could earn you decent profits quickly. In the United States, the used car industry has annual sales of over $350 billion.
Most people love used cars. They’re cheaper and don’t depreciate as fast as new cars.
It, therefore, makes sense to be in the business of flipping pars. You buy a car today and sell it a few days or weeks later at a higher price.
However, becoming a successful car flipper is easier said than done. Worry not, though. We’re here to help.
Continue reading to master the art of flipping cars.
Understand the Used Car Market
When you want to become a successful car flipper, you don’t just wake up one morning and start buying and selling cars. Doing so would be akin to driving a car without headlights in the dark – you’ll crash.
The first thing you should do is understand the used car market. Not just statistics like the annual sales and number of cars sold, but also the different factors that affect it.
For instance, how does the economy affect the auto retail market? What about weather seasons?
Used car prices typically start rising in the spring, peaking in the summer, after which they start the fall. In the dead of the winter, you’ll be lucky to sell a car. This cycle tends to repeat itself, year in, year out.
Get Your Funds Right
Flipping cars needs money. You need to be able to afford the cars you will be flipping before you can sell them.
So, how much money do you need to get started?
This depends on a lot of things, but $100,000 isn’t too bad for a start. Average used cars are hovering around $20,000, so one would assume that you want to start out with about five cars.
Bear in mind that money at hand gives you an advantage. When a good deal becomes available, you want to snap up the car immediately before someone else does. Without adequate funds, you’ll possibly lose out on the car as you wait for funds to become available.
Know the Best Cars to Flip
Not every car is a flipper’s car. Some cars have a good resale value and sell quickly and there are others even a dealership wonders who will buy them.
So, what are the best cars to flip when you want to make a profit? There are many of them and listing every make and model will require several pages. In general, stick to Japanese cars, classic cars, and SUVs.
Japanese cars are the epitome of reliability. Many low and middle-income earners are always buying them as a daily driver. Classic cars have a dedicated fanbase and SUVs are now the fastest-selling cars right now.
Flipping Cars Made Profitable!
Flipping cars is a challenging hustle, no doubt. However, with the right information, determination, and skills, you can become a successful flipper. This article has given you the information to get you started.
All the best and keep reading our blog for more tips and advice.