Every week, all over the country, people are buying cars at salvage auctions.
You may have thought about doing the same. If you buy a salvage car, it will definitely be a bargain. Many people even find some real gems at these auctions and end up with really impressive vehicles at a fraction of what the sticker price would normally be.
There’s also a group of people who show up to these auctions to buy cars and then sell them. These flippers have made serious cash doing so.
This might appeal to you unless you don’t have the mechanic skills to do the repairs yourself. Don’t be so sure, though.
The Baseline Knowledge You Need to Buy a Salvage Car and Sell It for Profit
If you know absolutely nothing about cars, you’ll have a hard time buying them and then selling them off again for a profit.
This is just common sense.
People who buy a salvage car need some amount of automobile-related knowledge or they could easily end up with a junker they overpaid for.
That being said, you don’t necessarily need to be mechanic. What you do need to do is lots and lots of research so you know what to look for and what to stay away from.
Picking a Niche
As with many businesses, you’ll do much better flipping vehicles if you stick to a niche. For the vast majority of people, this means popular, best-selling vehicles.
The reason for this is simple. Finding information about these types of vehicles is simple and you won’t have a hard time attracting buyers.
It also helps that most mechanics in your area will be very familiar with these types of vehicles, too, which will make it easier for them to quote you a price beforehand. As time goes on, you’ll simply know when you buy a salvage car what kinds of repairs they’ll need and how much they’ll cost.
Keep Your Budget Small at First
Far more important than understanding how to fix vehicles yourself is understanding not to spend too much when you first buy a salvage car to resell it.
Seriously, you only need about $1,000 plus the cost of repairs. You can then resell the vehicle for a fairly decent profit.
Get to Know a Local Mechanic
While understanding how to do some repairs yourself won’t hurt, the vast majority of you will be better off simply forming a business relationship with a local mechanic.
Let them know that you plan on buying and selling cars and that you need someone who can handle repairs quickly and at a fair price. Over time, they’ll be incentivized to keep your business by becoming a reliable resource.
Another thing that will help you make money in this line of work is using auto auction mall. That’s because we take the guesswork out of buying a car at auction. Just tell us how much you want to spend and what you’re looking for. We’ll tell you when the purchase is done. Then, all you have to do is take care of the repairs and turn a profit.