Making money by flipping cars is exciting. If you pull the right moves, you can make quite a bit of money on top of what you have invested. But in order to start making money, first, you’ll have to understand the used cars market, how to fix them up, and most importantly, what cars are worth fixing and which vehicles you should stay away from.
So, even though it seems like a good idea at first, flipping cars is really a double-edged industry, and you can quickly lose a lot of money as well.
Now, that’s exactly why we thought, why don’t we create a guide that goes over the most basic things that a person should know about making money reselling used and even cars that have been in an accident.
Now, without spending any more unnecessary time on the intro, let’s dive straight into the topic, shall we?
Make sure that you have all the necessary tools for the job before you buy the first vehicle.
The very first thing before you even buy the car is to make sure that you have the right tools at your disposal. At the very least you should have the basic set of screwdrivers, wrenches, and even some more specialized equipment like tig welding machines.
While you may not require everything for every single project, you start, investing in tools will quickly repay because you won’t have to go to a repair shop, and instead, you can learn and do the repairs yourself.
When you’re flipping cars, you really want to make sure that you’re spending as little money in repair shops as possible. The more things that you can do by yourself, the better, as it increases your profits.
And, at the end of the day, this is a very cut-throat industry, and you’ll have to fight for every single cent.
Research is a pretty big part of the job that most people don’t take into consideration.
You will have to do a lot of research. Everything from finding the right car (more on that in a bit), to making sure that you’re going above and beyond finding the proper repair manuals for the vehicles you’re working on, repairing cars is a tough business.
So, when you’re getting into this, keep in mind that a lot of time will be spent in front of a laptop screen, reading thousands and thousands of comments in different forums until you find a possible solution for your problem.
And even then things may not work out. So you’ll have to do a bit of research around licensed shops, and even drop your car there, which costs additional money.
Searching for the right type of car takes a long time, and there are a lot of factors to take in before you decide on a vehicle.
And while we’re on the topic of research, you will have to find the right type of vehicle before you pull the trigger and buy it. But while working on passion vehicles sounds super exciting many times, it doesn’t make financial sense to buy these types of vehicles.
That’s true, mostly because you will have to make sure you can afford to rebuild the cars you’re acquiring and then, you’ll be able to sell that vehicle at a fair price as well.
It’s a very delicate balance that you will have to keep on track, especially if you want to be a successful car rebuilder. Choosing maths over passion is more often than not something that you’ll have to do.
Doing the proper vehicle background check can save you a lot of time and money in the future.
And our final tip is probably one of the most important ones in this article. That is, undoubtedly, the fact that you will have to do a proper background check on each vehicle before you purchase it.
Checking the VIN number on the vehicle will give you a glimpse of its history. If you’re in the US, there are a lot of different services that allow you to do a thorough check, and they’re fairly inexpensive some costing under ten dollars.
Having a VIN number check performed can show you what repairs the car has had performed on it, and in some cases, it can even save you from buying a doctored up vehicle that has been repaired after a fairly severe accident.
No matter what type of car you go with, having a process that you go through every time you start a new project. This will save you both time and money.