I have been thinking about this for a while now, and it is possibly a great small business venture selling used cars, especially if you are good at fixing cars yourself. If you know your way around a car, most things can be fixed by hand, in some cases, cars only need a really good deep clean and a polish up to make money on. But what things should you follow to have a successful little business selling used cars. Think about it, there are used car showrooms all over the place, such as Car World – Second hand car supermarket, who have been doing this exact same thing, but on a much larger scale.
You should research on places like eBay, AutoTrader, Cragslist or even Facebook sellers pages. These are great places to look for cars currently for sale, and will allow you to get a average price of what you expect to pay for cars. Start small, and keep an eye out for cars that are going cheap on any of the previously mentioned websites. Usually when they are going cheap, there may be something wrong with the car, and may need a little bit of work doing to get them back up to scratch.
Parts can be fairly cheap to buy, especially online, so research to see how much the parts are to repair the car you are looking at. Add this cost to the current cost of the car. If its still well under the usual market price of the car, go take a closer look at the car, and see if their description of the fault is true. If you are fairly confident you can repair the issues, place a bid.
It would be recommended to keep to things you know. Myself, I would keep my eye on any Ford Focus, as I know them inside and out, and can repair pretty much any fault myself on these cars. As this is something I own, I keep up-to-date on the current market prices, so I know what is considered cheap, and I know how much I could make from one car that has been fixed to fully working order.
I would recommend taking at least two looks at the vehicle before you part with any cash, and give it a test drive (if it does run). There are many great websites which allow you to get great used car information, and you should pick up any Automotive Magazine to get great deals..
There are lots of places to pick up car parts, new or used. You can find almost any part you require on eBay, from either a new part dealer, or even people breaking written off cars, but is it best to go second hand, brand new, or a copy of the same part. Well that all depends on what your budget is you have worked out from the previous research part.
Remember to only take on cars that you can fix yourself. Not all of us have 4-post lifts to get underneath a car to fix bigger objects such as gearbox replacements, or even full engine replacements, but simple small things like exhausts, alternators, wheels and the likes can be fitted on your driveway in a matter of hours.
Once you have got the car back up and running and in a saleable condition, get it listed on a number of different websites with a buy it now price (Try to avoid places like eBay again, as they will take a cut of your profit), but you can list cars for free on Cragslist.
Take lots of pictures in good light, and list everything that has been fixed (people like to see that cars have had bits fixed, as chances are they will not go wrong for another couple of years afterwords).
There are many books out there (http://reevw.com/cashing-in-on-used-cars/) which can help you make money with selling second hand cars, this is a good business idea to go with if you like tinkering on cars, and even better if you are good at getting those eBay bargain cars.