Our neighbor Jose doesn't speak much English, which makes it
tough to live here in northern Michigan. Despite that, he made a profit of
over $30,000 last year selling cars out of his front yard. It's true that
he's a mechanic, and that helps, but it isn't the key to his success.
The Key To Buying And Selling Cars
To make money selling cars you have to know the value of cars. Knowing
which cars people most want might help too, but any car will sell for some
price, and you need to know that price. Drive around looking at cars for
sale, or cars just sitting idle in people's yards. When you can easily look
at a car and guess how much it will sell for, the rest is easy - just offer
$1000 less. You'll eventually buy a car, and sell it for a profit. Then you
can and repeat the process.
To start learning about the used car market, you can watch the classified
ads, keeping in mind that the asking prices are not the sales prices. Take
notes. Used car pricing guides, such as the "bluebook," generally show
inflated retail prices. Use them, but assume you'll sell the car for the
"loan value", or average wholesale price. In any case they are good to show
to your prospective buyers.
If You Know Nothing About Cars
What if, like myself, you know nothing about buying and selling cars and
don't want to learn? Find a friend who knows cars and wants to make money.
For example, I gave my brother $950 to buy an old truck because he said it
was worth more than twice that. Sure enough, he sold it in a week and
returned my money, plus half of the $900 profit.
I gave another friend $3200 to buy an old plastic-bodied car. He paid
$2200 for it, and put a transmission in it, along with other minor repairs.
I didn't know what a Corvette was, why anyone would want a car from 1976, or
where to go to get a transmission put in for $800. Fortunately, my friend
did.
Less than two weeks later he sold the car for $4200 and returned my money
plus my half of the profit: $500. I've done this a number of times now with
friends who know more about cars than I do. Are you cash poor? A short term
cash advance on a credit card would have cost me about $50, still leaving a
profit of $450.
Here in Michigan, the law says you need a dealer's license if you sell
more than six cars in a year. You could have six titled in your name, six in
your friend's name, and six in your wife's name. That gives you a good
chance to see if you like the business enough to get a car dealers license.
Check the relevant laws in your state.
The key to buying and selling cars for profit is knowledge - but you can
get that from a friend.
Steve Gillman has been studying every aspect of money for thirty years.
You can find more interesting and useful information on his website;
http://www.UnusualWaysToMakeMoney.com
Article Source:
http://EzineArticles.com/
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