| Our neighbor Jose doesn't speak much English, | | | | wants to make money. For example, I gave my |
| which makes it tough to live here in northern | | | | brother $950 to buy an old truck because he |
| Michigan. Despite that, he made a profit of | | | | said it was worth more than twice that. Sure |
| over $30,000 last year selling cars out of | | | | enough, he sold it in a week and returned my |
| his front yard. It's true that he's a | | | | money, plus half of the $900 profit.I gave |
| mechanic, and that helps, but it isn't the | | | | another friend $3200 to buy an old |
| key to his success.The Key To Buying And | | | | plastic-bodied car. He paid $2200 for it, |
| Selling CarsTo make money selling cars you | | | | and put a transmission in it, along with |
| have to know the value of cars. Knowing which | | | | other minor repairs. I didn't know what a |
| cars people most want might help too, but any | | | | Corvette was, why anyone would want a car |
| car will sell for some price, and you need to | | | | from 1976, or where to go to get a |
| know that price. Drive around looking at cars | | | | transmission put in for $800. Fortunately, my |
| for sale, or cars just sitting idle in | | | | friend did.Less than two weeks later he sold |
| people's yards. When you can easily look at a | | | | the car for $4200 and returned my money plus |
| car and guess how much it will sell for, the | | | | my half of the profit: $500. I've done this a |
| rest is easy - just offer $1000 less. You'll | | | | number of times now with friends who know |
| eventually buy a car, and sell it for a | | | | more about cars than I do. Are you cash poor? |
| profit. Then you can and repeat the | | | | A short term cash advance on a credit card |
| process.To start learning about the used car | | | | would have cost me about $50, still leaving a |
| market, you can watch the classified ads, | | | | profit of $450.Here in Michigan, the law says |
| keeping in mind that the asking prices are | | | | you need a dealer's license if you sell more |
| not the sales prices. Take notes. Used car | | | | than six cars in a year. You could have six |
| pricing guides, such as the "bluebook," | | | | titled in your name, six in your friend's |
| generally show inflated retail prices. Use | | | | name, and six in your wife's name. That gives |
| them, but assume you'll sell the car for the | | | | you a good chance to see if you like the |
| "loan value", or average wholesale price. In | | | | business enough to get a car dealers license. |
| any case they are good to show to your | | | | Check the relevant laws in your state.The key |
| prospective buyers.If You Know Nothing About | | | | to buying and selling cars for profit is |
| CarsWhat if, like myself, you know nothing | | | | knowledge - but you can get that from a |
| about buying and selling cars and don't want | | | | friend.Steve Gillman has been studying every |
| to learn? Find a friend who knows cars and | | | | aspect of money for thirty years. |