Buying and selling cars can be a risky business, but getting it right can also be very rewarding. There is certainly money to be made in this line of business. It’s a trade that, given the right no how, can earn you a significant sum. Getting started, however will probably be the most difficult part of the process. Your capital what you are prepared to put in to your business can vary, but realistically I feel you need to be looking around the £3000 mark. This will get you a car that may not be in perfect condition, but is running well, can be cleaned and touched up, to earn yourself a bit of profit. It should also be noted that, in this industry it is also about timing. For example, one weekend you could go and buy a car for £3000 and sell it the next for £3500 without a single hand being lifted. However, flip the coin and money can also be lost just as quick. I would like to run through with you and try and help you avoid any mistakes that can be made.
Finding your First Car
You now have your capital so it’s now a matter of finding the right car. You have a choice of avenues to explore which could be, used car dealer, auction or private sellers. All of these are great places to look for a bargain. I feel that private dealers are usually cheaper as the cost doesn’t involve paying any overheads which usually should mean its cheaper.
Negotiating
My advice if any, would be to never pay the marked price. Put the shoe on the other foot. If you wanted £10,000 for a car you would mark it at £11,000 because you’re always going to get the odd customer that tries knocking you down so you need to bear this in mind.
Bought the Car
Now you have bought the car, it’s important what you do next. If you want to be known as a reliable source to buy cars from, it’s vital you build a good reputation and as you are just starting out it’s key that you start off on the right foot. Make sure the car is thoroughly cleaned, oil is checked, any nagging problems the car has are sorted; this way people know they’re getting a good deal and gives you more chance of there custom again.
Selling the Car
Just as you bought the car, you now have the same options to sell it. You need to make sure you have the lowest costing option as this way you will earn more profit. You can then use your profit to help purchase your next car.
As you can see, the same as any business, it’s all about making good reliable contacts and offering a service that can’t be found everywhere to make people keep wanting to come back. Good customer service means that people will recommend you to friends or family and hopefully these people will also come to you when looking for a car. Some cars may need more tlc than others; the key is working out if you feel you can make a profit on the car in question. Good luck.