Buying and selling assets is a commonly-used method for establishing an alternative income stream and making some extra cash. Whether it be homes, land, or vehicles, there’s no doubt that there’s plenty of money to be made this way if you know what you’re doing.
Luxury cars, in particular, can be not only a source of extra income but a full-on sustainable business if you play your cards right. There’s a bit more to it than simply buying discount luxury cars and reselling for a higher price, however.
In case you’re interested in this line of work, let’s take a look at how you can turn the buying and selling of luxury cars into your own sustainable business.
1. Know Where to Look
The way to make the most money in this industry is by finding the best deals on luxury cars. Craigslist, Facebook Marketplace, and other sites like this can be a place to pan for gold.
Luxury cars are an asset that tends to be leveraged first when people run into financial trouble, so there’s never a shortage of people offering great deals on seemingly high-end cars. Don’t limit yourself to one area, either.
Each sale can net you a huge chunk of change so you should be willing to travel to at least a few states within your reach to snag your catch.
2. Fix Them Up
You’ll make a lot more money if you can fix the cars yourself or at least get a special discount from your mechanic. If not, you can still turn a profit by getting them driveable and presentable, even if they aren’t in 100% mint condition.
The most important thing after getting the car mechanically sound is to make it look nice. Invest in all the cleaning products and methods you can to get it looking fresh, inside and out. Use baking soda to get corrosion off the engine and steam clean it as well.
Polish the dash and shampoo any carpeting. Invest in new tires and rims, they’ll typically have an ROI of over 100%. Top it off with a snazzy new paint job and you’re good to go.
3. Don’t Get Greedy
Make sure to evaluate sites like Kellybluebook.com and others to see what the typical asking price is for the make and model of your car. You can get sales done a lot quicker if you’re willing to budge a bit on your asking price. Luxury cars are harder to sell in general than regular cars because not everybody has the money to buy one.
4. Stay Above Board
Do things by the book. Don’t float titles, get them properly transferred before reselling. Also, make sure to check your local regulations and see how many cars you can sell per year without a permit. If you want to scale things up, go ahead and get the proper permits so you can sell cars without incurring a fine from the government.
Reselling Luxury Cars Can Be a Quick and Easy Way to Make Money
“As long as you do everything the right way, buying and selling luxury cars is a surefire way to generate a good amount of income. If you want to turn it into a sustainable business, you can easily do so by following the steps we’ve laid out here.” - Corey Tyner, an entrepreneur from Phoenix who buys classic cars for cash and sells them.
Know where to look for the best deals and learn how to do mechanic work yourself if you don’t already know-how. Also, invest heavily in the outward appearance of the car while making sure that it’s also mechanically sound enough to drive without issue. Remember not to get greedy during a sale or it could take a lot longer to complete
Finally, do things by the book and stay above board by transferring titles as required and getting a permit if you plan on passing a certain threshold of sales per year. Do all of the above and you’ll be all set when it comes to building a sustainable business buying and reselling luxury cars.
Sam Willis is a business and finance writer that focuses on helping small business owners increase the value of their business. He specializes in topics related to business valuation, business management and business acquisitions.