One thing I hear a lot when I talk to people about flipping cars is how difficult they think it is.
As much as I’d like to think I’m some genius that has figured out a magical formula, that’s just not the case.
I just use a simple process. And I do it over and over again. I’ve been fortunate to provide for my family doing so along the way.
Just because something is profitable doesn’t mean it has to be complicated.
I’m not going to say I was confident about every deal from day one. I was scared to death on my first few deals. Fortunately for me, my dad knew everything there was to know about buying and selling cars, and he helped get me started.
Maybe you don’t have the luxury of having someone take you step by step through the car flipping process like I did, but you do have this website. I’m not saying I know everything, but I can tell you what’s working for me.
Flipping cars at its core isn’t that hard to understand. Here are five reason flipping cars is actually easier than you think.
1. Simple Concept. I’m going to sum up the car flipping process in one sentence. Buy good deals and sell them for more.
It’s that easy. Sure, there is more to it than that, but that sums up the process. Find good deals, and sell them for more.
What you might not know right now is how to find those good deals. Or maybe you don’t think you’re any good at selling. These are all things that can be learned.
I once tried to learn the business of stock options trading. I bought books, found websites, and even had a friend that was in the business.
I could have eventually learned the options trading business, but it was by no means a simple concept business. It didn’t take long until I gave up. I just couldn’t wrap my head around it.
Buying and selling cars for profit is something anyone can understand. If you’re willing to learn the basic process, you can make good money flipping vehicles.
2. Use Other Peoples Knowledge. If you can learn how to find good deals, the rest can be a lot easier if you can leverage the knowledge of others.
Like many things in life, it’s a lot about who you know.
If you plan to flip cars, at minimum you need to know a good mechanic and body guy.
I do a lot of my own mechanic work, but there are certain things I don’t like doing and other things I don’t even have the equipment for.
I have a Dodge Ram in the shop right now having the ball joints replaced. First off, I don’t enjoy doing suspension work. Second, I don’t have the equipment required to press out the lower ball joints.
Having a reliable mechanic allowed me to drop off the truck and pick it up in a few days as good as new.
If you have a body guy that does good reasonable work, they can usually give you idea of what they charge per panel. For example, $125 to paint a fender, $150 for a hood or trunk lid, or $600 for an entire vehicle.
Knowing numbers like that will help you evaluate a deal knowing roughly what body repairs will cost you.
3. Cars Are (Somewhat) Liquid. For those not familiar with the term, a “liquid” asset is defined as an asset that can be converted into cash quickly and with minimal impact to the price received.
Assuming you’re buying your cars right, if some unforeseen event occurs and you need cash quickly, you should be able to sell your cars quickly. Worst case you sell them at a discount to shorten the time frame.
Vehicles are an in-demand item. Most people’s livelihood depends on having reliable transportation. It’s not like people aren’t looking for well priced cars. If you’re in a pinch and need to off-load on the quick, it usually doesn’t take long to convert your cars into cash.
4. Low Risk. By definition, all investments are risky. If you don’t believe me, just ask someone how their 401k faired in 2008.
Most people knew investing had a chance of risk, but they never thought it would actually affect them. Unfortunately many were wrong.
The beauty of car flipping is it’s hands on. With stocks or options trading, you are counting on others to deliver for you to make a profit.
With car flipping, it’s all you. You find the deals. You evaluate the cars. You recondition them. You advertise them. And you sell them.
You have full control over the outcome, not some guy at a desk who knows where.
5. An In-Demand Industry. As I mentioned earlier, people have to have cars. If you have vehicles that are priced right, you are in business!
I almost named this section “You Don’t Have To Sell To Your Friends And Family”.
Not that you can’t, but we all know that person that is selling something, and their only target customers appear to be their friends and family.
You see this a lot in pyramid marketing type businesses. You’re social media newsfeed might be full of that friend or relative that is selling “the next big thing”.
You don’t want to be that person. You don’t want people to cringe when they interact with you.
With car flipping, you won’t be that person. If everyone you know never even knew you flipped cars, it wouldn’t affect your success.
Whether you’re well connected or a hermit that lives in a tree, once you’re car is posted to Craigslist, you’re on an even playing field (if you’re a hermit that lives in a tree and are offended by this, my sincerest apologies).
I said all that to say this. Flipping cars is easier than you think. The only thing holding you back is what you don’t know, and that’s why I’m here.
Flipping cars has made so many things happen for my family that would otherwise not have been possible. I know it can do the same for you. It’s not rocket science. You can do this!
If making extra cash on the side flipping cars sounds interesting to you, I hope you’ll stick around. If you would like to have content like this sent directly to you inbox simply subscribe at the tope of the page. Not only will you never miss a post, but you’ll also receive an invitation to a free private Facebook group comprised of people of all flipping backgrounds (pun intended). Hope to see you there!