Auto Trading: How to Get Started In Flipping Cars
Auto Trading is one of the most financially successful industries on the planet. You will no doubt be tired of the endless car adverts that appear on our screens every year. But it speaks to the success of these companies that they can constantly pump out so many new models and still turn a profit.
But not everyone can afford a brand new car in the latest model. More commonly, people have to buy their cars second hand, and often models that are quite a few years old at the time of purchase. But cars are built to last and buying second hand is environmentally friendly and financially responsible.
Because the second-hand market is so popular, it is a fantastic way to make money. But it is also one that requires a lot of time, investment, and technical knowledge. This is why we are going to help you understand how you can get into the business of flipping cars.
The first step is, obviously, acquiring stock. The great thing about the second-hand car market is that you have a lot of wiggle room in terms of what stock you can get. You could simply buy working second-hand cars, or go the more financially smart route of buying broken or dying cars and fixing them up.
Scrap yards are a great place to look for cars. People will often sell the car to the scrapyard to get an instant payout, rather than going through the process of selling it themself. So you could intercept these people before they reach the scrapyard phase and buy their cars off them for instant payment.
When searching for cars, make sure you are only buying ones that are likely to sell. Unpopular makes or models are a non-starter. And older cars are also less likely to sell unless they are vintage in which case you stand to make a lot of money off them.
Fixing It Up
The biggest part of flipping cars is this step. If you are just buying old cars and selling them straight off, you are just working in a used car salesroom. If you really want to make some money, you need to be fixing up these cars. Restoring them to their former glory to make them more appealing.
If you lack the technical knowledge yourself, you will want to consider hiring a private team to do all that for you. You want to avoid sending the cars to a normal garage as, again, this is just you working as a middle man.
The idea is you want to earn more from the car than you spent buying and repairing it. To that end, you will need to map out the extent of your restoration long before you buy the car. If in doubt talk to an expert to get a proper price appraisal on all the changes you plan to make.
Lease Vs Selling
Now the final stage is actually selling the cars and turning a profit. Before anything, you will need some seriously good marketing. As we said, the second-hand car market is saturated, so you need to stand out. Take some time to look into some winning marketing strategies or even consider paying an advertising firm to deal with that side of things for you.
The biggest question you need to focus on is are planning to sell the cars, or lease them. Selling them is straight forward. The customer pays you and the car is theirs. This is the safest and more simple way of conducting your business.
Leasing is an entirely different game. This is where a customer will pay a fee to use the car for a set amount of time. This could be anywhere from a month to a few years. Think of it as a car rental service but a bit more complex.
Leasing works better for newer models or flashier cars. There are lots of car leasing comparison sites that will tell you what cars are currently popular among drivers so you can find out what cars you should consider leasing and which are better off being sold outright.
While this business is about cars, it is as much a sales job as any other. Which means your sales skills need to be up to snuff. I would say more than half of every sale is down to the salesperson, rather than the product. If you are a dud, it doesn’t matter how good the car is.
Take some time to practice your sales techniques in the mirror, or with a friend. Study up on sales tips and tricks that will help you seal the deal. And remember, the customer is king.