Buying and selling cars can be a nice little earner whether you do it for some extra income or as a full time job. Buying and selling cars sounds simple you buy high and sell low but there is more to it than that and that is what we will be talking about in this article. There are so many cars out there and so many people who are cashing in on this business, so why can’t we.
9] Research the market
Look for what types of cars are selling, what are the most popular models that you can sell and for how much, before you buy your first car. Don’t buy what you like because not everyone may like that kind of car. Buy what sells. Think about who your audience is – people who want cheap run around cars, first time drivers, mid market … do you want to specialise in selling a particular car you know a lot about. Where is the best place to buy good cars at cheap prices? Look at auctions, big car warehouses, trade sellers, online and anywhere where you can spot a bargain. To price your vehicle look at existing car adverts or car price evaluation sites to gauge how much you should charge.
8] Get Motor Trade Insurance
Motor Trade Insurance covers you when driving cars without having to insure them individually. Motor Trade Insurance is a great option as unlike private insurance it allows you to add and remove as many cars as like without having to pay additional costs. There are three types which cover you for different things and vary in price. Also apply for trade plates which are mobile tax discs that save you having to tax and register every car that is in your possession. This way you can drive the cars you buy back to your site.
7] Look to buy a car
Now you know what is popular and what market your aiming for, start looking at cars. Can you find a car with low milage, in good condition for a bargain? Go on auction and listing websites such as eBay and Gumtree and car selling sites such as Auto Trader UK and carwow. Or try and find cars at auction houses where you can pick up a real bargain.
6] Check documents
Check the car has all the documents and service history. Make sure the car has passed its MOT, make sure it’s clean, make sure there is a service history and has all the right documents. This will save you hassle later on as you know everything with the car is ok and working. So when it comes to selling you will have no issues or unwanted surprises.
5] You can check vehicle history before you buy
Do this to make sure the car is not stolen or anything like that. Check the car’s history online
and make sure there are no outstanding hire purchase or conditional sale agreements, as you cannot sell cars that have either of these. Once you see the car you should take it for a test drive
to get a feel for how it drives and check everything under the bonnet.
4] Carry out a thorough check of the car
Look under the bonnet and check things like the engine oil, fluid levels, under the oil cap and general condition. Check tyres (they need 1.6mm tread as a legal minimum UK), upholstery, spare wheel, dents and scratches, lights, windscreen and wipers, and so on. Try and check everything. Wind the windows up and down, turn the radio on and off, test the air conditioning. Faults could be a simple repair, but at the very least it’s a negotiating point if something doesn’t work as it should.
Prices are always high and have room for negotiation. Make an offer but be prepared to walk away if the seller isn’t willing to move. You may find that the seller makes a counter offer – if not straight way, then later on once you’ve driven home and showed you’re not willing to pay more money. If you’re buying from a dealer try and get some extras thrown in for free as well as money off. Ask for a full tank of fuel, a service or MOT. Avoid being pressurised into buying a used car. If you’re not 100% sure on the car always walk away – there will be more. Don’t buy a car from a private seller in a public place. View it at their home so you can see the address matches the V5 keeper’s document and take someone with you to feel safer.
Paying for a car. The best way of doing that depends a lot on the value of the car paying for a £500 car you could pay cash but doing so for a £20,000 car could get you into a lot of trouble. You could pay using a cheque, but the seller will want funds to clear before you drive away. Alternatively, transfer the money using online or telephone banking – this should be quicker than a cheque, but won’t be instant. A banker’s draft is quicker, but you’ll have to pay a fee for this. Do what suits you. At dealers you can pay with card.
Before transferring funds make sure that you are completely satisfied with what you are buying.
When transferring funds, ensure that you use a trackable method of payment such as a credit or debit card as paying by cash is far harder to trace.
It is important to be wary of private online sellers ensure you research the seller thoroughly.
Ask for a receipt – including any agreement like work to be carried out, the date and the car’s current mileage.
Sell the car
2] Now that you have a car look to sell it
You should have a car that you have bought below market value, the car could have low milage, be relatively new, with all documents and in good condition. Next look online at the same car with similar milage and see how much it sells for. What profit do you want to make? If possible price you car below competition to generate business. This way you could sell a good car, cheaper than competition and make a tidy profit.
1] Where will you sell from
At the start you may need to sell from your home and see potential clients there and as you make more money and get more serious you could look to buy a small car lot and sell from there. This is when you make more money and have a cars that will be too much to park at home.