Previously Owned Vehicles Can Make You Money

Americans love their cards, buying and selling millions every year. As new car prices rise, more people are looking for used-or previously owned-vehicles. There is a lot of money to be made in buying and selling these cars."Flipping" houses is a popular investment right now. Someone buys a property, invests some money in fixing it up, then sells it for a profit. You can do the same thing with previously owned cars.

Step 1: Dealer's License

Most states require you to hold a dealer's license to buy and sell a certain number of vehicles within a certain time period. Research your state's requirements online or at the Department of Motor Vehicles office. Be sure to get the right licenses, insurance, permits, etc. Don't be scared off by the requirements. Just fill out the right forms and you'll be on your way.

Step 2: Find the Cars

Look for cars that are for sale for less than retail or "blue book" value, so you'll have room to make a profit. Check around and find out which types of vehicles sell best in your area and nationally. Once you know what kind of car to look for, there are several ways to purchase them.

Classified Ads: Classifieds can be found in local newspapers and online. Internet options let you search for particular makes and models. Buying directly from a private party will usually get you the best deal.

Online Automobile Sites: Two of the most popular online sites are Cars.com and Autotrader.com. Here you can research and compare different types of cars, as well as search beyond your local area.

Auctions: There are many types of auctions where cars are available, especially to licensed dealers. "EBay Motors" is the best known online auction. If you bid online for a car that is already in your area, be sure to check it out first. If it's not in your area, be sure to ask questions to determine the exact condition of the car and the transportation costs before you bid. Learn more about other types of auctions by reading "Car Auctions: Buying Used for Less than Book." (link to that article)

Step 3: Check It Out

Once you've located a car that should sell well in your area, be sure to check it out. You don't want to spend more on repairs that you'll make when you sell it. Look for cars that don't have major bodywork problems. (Minor scratched that can be waxed or polished out are OK.) Avoid cars with serious mechanical problems, too. Vehicles that are mechanically sound but need some cleaning up are your best bet.

Step 4: Fix It Up

Clean the car and maybe give it a paint job or a touch up followed by a good wax and polish. Make sure the tires are clean and in good shape. Clean the interior and replace the old floormats. If the engine is in good condition and the car is clean, you'll make a profit when you sell the car.

Step 5: Sell It!

Once the car is in good shape and looking fine, you're ready to sell it. Place an ad in the local classifieds or online. Always include a photo that shows off the car's best features. A good photo can sometimes sell the car for you, and the lack of a photo makes people think you have something to hide.

So if you love cars, why not earn extra money buying and selling them? Do the research, find the right car, get the best price, fix it up, and resell it. That's all there is to it! If you find a car that doesn't require a big investment to "flip" it and you resist the temptation to load it up with fancy new equipment it doesn't really need, you'll be ahead of the game.