Whether you seek to earn a living or make some money on the side, buying and selling cars can be a lucrative business for the person who wants to engage in this endeavor. One note of caution: your state may require that you obtain a license if you plan to sell a certain number of vehicles within a year. Check with your state's department of motor vehicles for more information.
Let's take a look how you can get ready to buy and sell cars, with an eye towards making a living:
1. Visit your DMV – Your state's department of motor vehicles will tell you what is needed to buy an sell cars where you live. If you plan to sell multiple vehicles, you'll need to pass a DMV test to get a car dealer license. Likely, you'll need to establish a place, that is a commercial location, where you'll sell cars. This may need approval of the DMV as well as your local jurisdiction such as your city or county.
2. Get insured and bonded – Dealing with high cost merchandise such as cars means that you'll want to ensure that you're financially protected. This means having sufficient insurance and bonding. The former you can get from an insurance company, the latter from a bond agent. You'll need to be bonded in states where this is required. In California, for example, a dealer bond of $ 50,000 is required if you plan to sell 25 or more cars per year. You'll pay a fee for that bond, with one service charging $ 900 per year.
3. Make use of government auctions – Car dealers frequent auctions to buy and sell cars. Government auctions are popular as cars are located by federal, state and local jurisdictions. The federal level is where most vehicles end up as these cars are located in drug raids by the Drug Enforcement Administration or by the IRS to settle tax liens. Visit governmentauctions.org to find federal fleet vehicle sales and other auctions in your area. Check with your local police department for sales too.
4. Buy privately – Buying directly from a private party and selling to the same is the best option for people who buy and sell cars. No middleman is present and you can negotiate directly with the car's owner. If you have an eye for the market, that is you understand what cars retail for and can spot a bargain, then you stand to make money. Find cars by reviewing newspaper classified ads, visiting Craigslist and searching eBay Motors. Also, consider competing with new car dealers by buying customer's trade-ins and turning around and selling them.
Of course, this is a simple overview of the market, with more detailed research needed by you to determine whether buying and selling cars is right for you. However, given that most people need a car you have a ready supply of customers for your choosing, people who are looking for your help to get behind the wheel of a car that they can afford.