brondondolon
New member
- Nov 12, 2013
- 1,254
- 0
I did this back in 2006 when i couldnt get a job to save my life and to be honest i made a pretty good amount of money. Legally you should get a dealers license if you plan on buying and selling more then 5 cars a year (california law) last i checked at least. But to be honest from my experience it would be pretty hard to be caught for doing this. Here is what you do to avoid getting caught. Buy the car and dont fill in any of your info on the pinkslip. No one ever asked me to do it in front of them. Say you buy the car from some one named John Smith. You would then sell the car as though your name is John Smith. Also when you buy the car dont give the person your real name. The part that they turn into the dmv when you buy their car needs your name so this is why you give them a fake name. Obviously dont register the car or report it to your insurance. Its not your car so dont treat it like it is drive it home and park it till the day it sells. So thats pretty much it to avoid any legal ramifications.
As far as everything else here is my advice. Find a market you are familiar with. If you are into imports like civics, integras, eclipse stick to that market if you are into trucks stick to trucks. Reason i say this is my market was Jeeps, cherokee XJ in-particular, so i can tell you what a fair market price is for a 4x4 88 cherokee with 200k miles at this moment. i can tell you what i would pay for one and what i would sell one for. If you asked me what a 98 toyota corola with a bad catalytic converter high miles and bad paint would sell for and what would be a good price to buy it at to flip it id have no idea. So stick to a market to avoid ever losing money.
It is very convienent to do this with a partner. Its impossible to drive 2 cars home (the one you just bought and the one you showed up in) plus with 2 ppl you are less likely to make a foolish decision like believing some one when they say "it has a rebuilt engine i just accidentally spilled chocolate milk into the crank case..." you get the picture lol. Also with two ppl it lightens the work load. One person can look for cars, list cars, show cars, and the other fixes and preps the car.
Another piece of advice is buy cars that need some amount of work. Google and forums can help you through any problem and if all else fails you can take a car to a dealership for a diagnostics which cost 80-120 depending on the manufacture. When buying a car that needs work you will typically get a better deal and have more leverage to negotiate. Id say 75% of people know absolutely nothing about how a engine works so as long as you know how to work on a car you have a pretty big advantage because not only can you fix a problem your self but you can tell when some one is pulling your leg and you can also be the one pulling a leg in the negotiation.
When negotiating dont be afraid to offend some one with your low ball offer. Thats what negotiation is all about, getting the best possible deal. Plus with giving an insulting low ball offer the goal is to meet in the middle. So say some one is asking $2000 firm for a car and i offer them $800 ill 9/10 times walk away paying $1400 or less for the car that the person was oh so firm on lol. Key here is to shoot low because once you make an offer you cant go lower then what you originally offered. Another key here is to never try negotiating on the phone. Negotiating is best done in person because its easier for a person to deny your offer over the phone then it is in person. Its funny most people in person are very considerate of your feelings lol.
So now you got your car for near nothing and hell could prob sell it how you got it and make some money. Thats not the goal here unless you are happy with making $500 a week for a ton of work. Once you get the car fix any problems that are big issues but not so big as there is no profit. For instance dont go putting a $2000 paint jop on a $1500 car just because there was some oxidation on the bumper. I mean fix a crack in the window with 3m window repair, replace a broken door handle, fix a misfire, get rid of the check engine light. Things like that. First impression is everything. You want to polish this turd and make it seems like this is the best powder blue nissan stanza the world has ever seen. Here is an example, if i go and check out a car as im walking up i am looking for any imperfection i can possibly complain about so i can talk down the price. im going in thinking that you are trying to sell me some rickety ol gloppy for twice its fair market value so if i find any thing visually wrong with it im going to consider it just that. Now if i walk up to the car and its shining like a mirror coated with baby oil and i dont see anything wrong with it my attitude will be a positive one and i will WANT the car no matter what your asking price is. So you gotta polish that turd and sell it as if you need that money for insulin.
I think i have covered every area just know it can get addicting i was selling at my peek 3 jeeps a week and making no less then $1000 profit on each one. However that profit was split between my friend and i since we did it together. Still $6k tax free money in one month is nothing to sneeze at. Tax season is the best time to do this also. A reminder though is if you get into as deep as i did every min you are awake you will be either looking for a car selling a car getting a car ready or listing a car and taking calls. When you start making really good money from it i assure you it will consume you.
Good luck and i hope my info helped
Also some of my info is illegal and even though can be lucritive it could possibly make you endure legal ramifications. What i just told you was completely made up and it was a story comparable to a mother goose rhyme so dont DO IT, IT WILL not MAKE YOU ANY MONEY IF YOU DO WHAT I SAID. and it will possibly put you in jail if you listen to my fairy tail.
As far as everything else here is my advice. Find a market you are familiar with. If you are into imports like civics, integras, eclipse stick to that market if you are into trucks stick to trucks. Reason i say this is my market was Jeeps, cherokee XJ in-particular, so i can tell you what a fair market price is for a 4x4 88 cherokee with 200k miles at this moment. i can tell you what i would pay for one and what i would sell one for. If you asked me what a 98 toyota corola with a bad catalytic converter high miles and bad paint would sell for and what would be a good price to buy it at to flip it id have no idea. So stick to a market to avoid ever losing money.
It is very convienent to do this with a partner. Its impossible to drive 2 cars home (the one you just bought and the one you showed up in) plus with 2 ppl you are less likely to make a foolish decision like believing some one when they say "it has a rebuilt engine i just accidentally spilled chocolate milk into the crank case..." you get the picture lol. Also with two ppl it lightens the work load. One person can look for cars, list cars, show cars, and the other fixes and preps the car.
Another piece of advice is buy cars that need some amount of work. Google and forums can help you through any problem and if all else fails you can take a car to a dealership for a diagnostics which cost 80-120 depending on the manufacture. When buying a car that needs work you will typically get a better deal and have more leverage to negotiate. Id say 75% of people know absolutely nothing about how a engine works so as long as you know how to work on a car you have a pretty big advantage because not only can you fix a problem your self but you can tell when some one is pulling your leg and you can also be the one pulling a leg in the negotiation.
When negotiating dont be afraid to offend some one with your low ball offer. Thats what negotiation is all about, getting the best possible deal. Plus with giving an insulting low ball offer the goal is to meet in the middle. So say some one is asking $2000 firm for a car and i offer them $800 ill 9/10 times walk away paying $1400 or less for the car that the person was oh so firm on lol. Key here is to shoot low because once you make an offer you cant go lower then what you originally offered. Another key here is to never try negotiating on the phone. Negotiating is best done in person because its easier for a person to deny your offer over the phone then it is in person. Its funny most people in person are very considerate of your feelings lol.
So now you got your car for near nothing and hell could prob sell it how you got it and make some money. Thats not the goal here unless you are happy with making $500 a week for a ton of work. Once you get the car fix any problems that are big issues but not so big as there is no profit. For instance dont go putting a $2000 paint jop on a $1500 car just because there was some oxidation on the bumper. I mean fix a crack in the window with 3m window repair, replace a broken door handle, fix a misfire, get rid of the check engine light. Things like that. First impression is everything. You want to polish this turd and make it seems like this is the best powder blue nissan stanza the world has ever seen. Here is an example, if i go and check out a car as im walking up i am looking for any imperfection i can possibly complain about so i can talk down the price. im going in thinking that you are trying to sell me some rickety ol gloppy for twice its fair market value so if i find any thing visually wrong with it im going to consider it just that. Now if i walk up to the car and its shining like a mirror coated with baby oil and i dont see anything wrong with it my attitude will be a positive one and i will WANT the car no matter what your asking price is. So you gotta polish that turd and sell it as if you need that money for insulin.
I think i have covered every area just know it can get addicting i was selling at my peek 3 jeeps a week and making no less then $1000 profit on each one. However that profit was split between my friend and i since we did it together. Still $6k tax free money in one month is nothing to sneeze at. Tax season is the best time to do this also. A reminder though is if you get into as deep as i did every min you are awake you will be either looking for a car selling a car getting a car ready or listing a car and taking calls. When you start making really good money from it i assure you it will consume you.
Good luck and i hope my info helped
Also some of my info is illegal and even though can be lucritive it could possibly make you endure legal ramifications. What i just told you was completely made up and it was a story comparable to a mother goose rhyme so dont DO IT, IT WILL not MAKE YOU ANY MONEY IF YOU DO WHAT I SAID. and it will possibly put you in jail if you listen to my fairy tail.
