In 2002 I had no money but needed a new car badly. I spent months researching car auctions and eventually found a few in my area. I bought a 1997 Jeep Cherokee with 90k miles for $4500. There was an almost identical model on eBay with a starting bid of $10k. Then I saw the opportunity to make some money from this venture... So a month later I bought a 1999 Impala with 40k miles for $4,300 and sold it 2 weeks later on Craigslist for $7,900. After that I was hooked. Now I'm flipping over 10 cars a month for about $1500 profit each.
Of late I have been receiving numerous phone calls and even emails from everyone wanting to know how earn some extra money by buying and selling cars, so I've put together this guide on how to get started...
Just like any other business, making money buying and selling cars is not necessarily as easy as one would think and it cannot be explained through a phone call or copart history by an email. I could fill 1000 pages with tips, tricks and methods for successfully buying at car auctions and I some point I might...but for now I can offer some key points for getting started and answer some of the bigger questions out there.
I've bought a lot of the car history price out there and they all gave good tips on how to purchase at car auctions but that was all. I was paying $19-$30 for a guide that didn't actually list any of the auctions that I should be buying at. So I started compiling a list of list of every single car auction by state and agency...(on my site).
What made me to choose this bucar history pricesiness:The main and important reason I chose this business I was looking for a way to generate sustainable passive income. There are so many fantastic deals at so many auctions but the vast majority of the population will never know.https://vk.com/id664469769?w=wall664469769_510
I also know that car market is HUGE. Almost everyone who owns a car these days buys a different car every 5 years or so. There is absolutely no question on the size of the car market and demand for consumers. There is always demand for a good deal on a good car - even if it's not one that you would drive, just remember, someone will pay for it. One good thing about a tough economy is that a lot of people will be looking someone who can give them a good deal on a car.
The first step is to find a list of free cars history in your area. A lot of counties have police auctions every month. Note - some of these auctions require a dealer's license so you'll want to check for that ahead of time.
Once you find an auction, get a bid-list of the vehicles up for auction. For example, at a recent auction in my area there were 3 cars that got my interest:
A 2001 black Honda Accord with a little over 37k miles on it.A 2003 white Chevy Impala with 90k miles on it.A 2003 grey Ford F-150 pickup with 67k miles on it.
All three of these cars are popular models with under 100k miles and good colors (although I'm not crazy about the white Impala, it's actually a fairly popular color).
There's very little info other than the picture. The Impala and the F150 were likely government vehicles and the Honda was probably a seizure (in the photo it also looks like there were some 'ground effects' modifications - probably a drug dealer).
The Impala has almost 100k miles on it but the good news is that government vehicles are generally very well maintained which should help them sell quicker. These are all prime examples of good cars to try and buy at auction.
Now, we need to figure out how much to bid on each of these. At this point it's worth it to discuss some of the different auction formats. Many government auctions are 'sealed bid' which means you submit a bid along with other people without seeing what their bids are. Then, the highest bid wins. These auctions are tougher for obvious reasons.
The other type of auction are what's known as the standard 'dutch auction' in which the bid starts out at a certain price and various bidders offer higher prices until the car is sold. Unfortunately, this auction is a 'sealed bid' auction so I'll have to really do my homework.
The trick with 'sealed bid' auctions is that you have to submit a bid that's low enough to make a profit but high enough to win the car. In recent years, certain auctions have become more popular with what I call the 'amateur buyer'. These are the people that bid more than the car is really worth. They win the car but they take a perfectly good money making opportunity away from you in the process.
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