How to Buy Cheap Cars and Sell Them for a Profit

Whether you’re looking for a new business venture or you’re interested in increasing your income so you can retire early and achieve financial independence, there are many ways to make money.

One way you can make extra money is through buying items and then flipping them for a profit. You’ve probably seen it on television: shows where people flip antiques or houses, and even get in bidding wars over storage units in order to flip their contents. One less well-known product to flip is cars and car parts.

While it takes some mechanical and automotive knowledge, flipping old cars can actually be quite the money maker. If you’re interested in learning more about how to buy cheap cars and make a profit off of them, read on.

Where can you find cheap cars to sell?

The first thing you need to know before you start flipping cars is where to find cheap ones. Having a reliable source for your new business’ inventory is incredibly important, because if you can create a consistent source of inexpensive cars, you can create a consistent source of income.

Using a website like Auto Auction Mall is one good place to start, since they not only auction off used cars, but also sell salvage cars as well. Salvaged vehicles (also known as totaled vehicles) are where you can really make money flipping cars, because you’re able to fulfill the age old adage “buy low, sell high.”

Just like foreclosed homes are prime targets for flipping in the real estate business, purchasing a salvaged vehicle offers the highest rate of return, thanks to the fact that you can purchase it well below market value.

How do you make the most money selling cars?

So, you’ve bought your first salvaged vehicle—now what? You’ve got a couple options when it comes to making your money back and then some flipping your salvaged car. The important thing to remember is to maximize your potential for earning.

It’s also important that you don’t overlook any piece of your car when breaking up the parts. If the engine still works or is easily repaired, that will be a high ticket part to sell. But other smaller parts like hubcaps, fenders, windshield wipers, and spark plugs can also add up quickly once you start selling them to others.

Mechanics and car enthusiasts are always looking for cheaper places to source parts and help them repair or rebuild vehicles. So if you can offer competitive prices, you’ll be able to move your inventory quickly.

Once you’ve sold everything of any value from the salvaged car, your last option to squeeze a tiny bit more profit out of the vehicle is by selling it to a scrap metal yard, which usually pays you by the pound.

How can you attract more customers?

Of course, all of your work following the above two steps is worthless if you can’t find the right customers or grow your existing customer base.

A new business needs new business leads, and online business-to-business directories can help you discover and learn more about new potential customers. Many websites let you target customers based on their demographics, geography, and more, making it simple to find leads that actually pay off.

While flipping houses may be all the rage, flipping cars can offer great returns, too, and requires less of an initial investment up front. By finding good deals on salvaged vehicles and making sure to flip every individual part rather than the whole car, you can easily make a profit off of your purchase.