The motor trade is one of the most accessible on the planet, brilliant for anyone who wants to start their own business and get involved buying and selling with little to no experience. Of course, a general interest in business and a more in-depth passion for cars will assist anyone considering this path to be successful, although there are a number of other factors that will need to be thought through.
Anyone can sell one or two things at a profit, making it a success over a sustained period is another thing altogether.
Here are some of the top tips and advice that will help you make a long-term income from selling used cars.
Use the InternetYou’ll find some ridiculously good deals for used cars online, usually because people want to get rid of a car as quickly as possible. The cynic might think these would always have a dodgy element to them, but there’s a genuine reason most of the time.
Of course, eBay is the first place to look, but you’ll also find great options on sites such as Gumtree and Craigslist, depending on your location.
Head to AuctionsAuctions are a great place to pick up used cars, especially if there are any that have been repossessed as part of a hire purchase agreement, meaning you can get a next to new car for sometimes very little but then sell on at a ridiculous profit.
Check as Many Times as You NeedIf you’re unsure about a particular car or a seller, then take as long as you need to make a decision. If you get a feeling about a person or a car, then you should always act on your instinct whether it’s good or bad.
There will be times, however, when you need to go away and think about certain things, such as whether a car needing repairs is worth buying, and what your net profit will be having performed the work before selling it on. If someone gets rude about you taking your time, they’re probably not worth dealing with.
Go for Classic CarsThis might be something you do in the longer term when you’re turning over a lot of money, but it’s definitely worth keeping it in mind. We’ve all heard the stories about how much value a car loses when it’s driven off the forecourt, but the reverse is true for classic models. Classic and vintage cars, particularly if they’re rare, sell for a lot of money and tend to be worth more as time goes on.
Cover YourselfProtecting yourself is a must if you’re serious about used car sales as a business venture. You’ll need motor trade insurance to ensure you’re fully covered; you can’t simply insure each vehicle as your own until it’s sold! Find a mechanic, ideally one that you already know and trust, who can work with you when cars need repairing. Work out how you’re going to pay them; most will charge per service but it could be better for both parties if you have a share the profits agreement, for example.
Buying and selling used cars is exciting and a great opportunity for those committed to it. Ensure you follow these steps so that you aren’t caught out and find yourself losing money through recklessness.
AUTHORS BIO: Mick is a used car salesman who makes a secondary income offering advice and consultation services to other entrepreneurs in his local area who are looking to get started in the trade.