5 Ways to Make Money Selling Cars

5 Ways To Make Money Buying And Selling Cars For Profit

By Stephen Hobbs

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How To Make Big Money Selling Used Cars As a Curbstoner

Curbstoning is when a private party buys a used car at a low price and then sells the car to another private party at a higher price, thus making a profit.

This term curbstoner is used because the place they usually park the car they are selling is at the curb in front of their house. Get it?

Why would anyone sell you their car for less than what its worth?

The seller doesn't care about making more money on the vehicle.

The seller doesn't realize their car is worth more.

The seller knows their car is worth more than what they are asking but they prefer to sell it fast and for less so they can go on with their life.

The car requires $10 of spark plugs (or whatever) but the seller thinks the car needs major repairs.

The car requires minor or major repairs and they are openly telling you about this, hence the low price.

The car requires repairs and they are trying to hide that from you.

The seller is a moron.


You could probably come up with more reasons but I think that pretty well covers the main ones. Its not just cars that often sell for less than they are worth because people sell stuff all over the world for less than what it could sell for (i.e. below market value), and this his stuff includes boats, houses, land, computers, businesses, toys, surfboards, stocks, snowboards and pretty much anything else you can imagine.

Buying low and selling high is the rule for making money. My book, The Lazy Way To Buy and Sell Cars for Profit teaches you how to locate those deals. How to to determine what is a good deal or not, inspecting the car, test driving the car, preparing the car for selling, how and where to advertise, how to handle paperwork, etc., etc.

Many in the used car business, specifically car dealers, resent curbstoners because they didn't go through the time and expense involved in getting their car dealers license like they did.

I can't really blame the car dealers for feeling a little resentful towards those that quietly make money doing the same thing they do but without all the massive overhead and headaches. The problem is that many licensed car dealers spread stories about how all curbstoners are liars and cheats.

So what is the truth?

Well, some curbstoners are lying cheating scumbags, but so are some licensed car dealers tooand people involved in a million other professions!

And just because someone buys and sells cars from their house does not mean they are dishonest and neither does having a state issued piece of paper like a car dealers license guarantee that individual is an honest person.


As in all walks of life, the truth is that some people are honest, and some are not, but fortunately the honest among us greatly outnumber the scumbags!

Yes, most people selling used cars are honest decent people and the used car market is so huge that there is room for lots of us to make money.

What are the pitfalls?

The biggest pitfall is to spend more on the car buying it and preparing it for selling than what you can sell it for. Fortunately that problem is easily solved by studying and putting into practice what you will learn in The Lazy Way To Buy and Sell Cars for Profit.

The other problem is that most states and many governments in general impose limits on how many cars a private party can sell per year, although I have yet to hear about limits on how many cars a private party can personally own and then choose to sell later for whatever reason. There is a clear difference.

The really cool thing about curbstoning is that you can start today (even if you have a full-time job) and get paid really well while gaining valuable on-the-job-experience. And if you choose, you can work on getting your car dealers license later or just put into action another method that allows you to legally sell as many cars as you want per year without having your own dealers license as detailed in The Lazy Way To Buy and Sell Cars for Profit.


Sell Used Auto Parts And Make Big Money Like Barry Does

Sell used auto parts? Huh? I thought this was about buying and selling used cars? It is, but one of my readers (Barry) took what he learned in my book The Lazy Way To Buy and Sell Cars for Profit and put a really profitable twist on it.

Here is what Barry told me in an email he sent me

"Hi Steve,

The principles in the The Lazy Way To Buy and Sell Cars for Profit are very sound. Ive applied them in a slightly different automobile market than how you discuss, but with similar results. Instead of buying used running cars to re-sell, I buy either running or non-running project cars.

I specialize in British sports cars, such as MGBs, MG Midgets, and Austin Healey Sprites. Theyre rare and there are a lot of people nationally who restore them and are willing to pay quite a price to get an original part. The fact that these cars havent been sold in the U.S. since 1980 makes them increasingly rare and valuable.

While Im willing to do the more expensive cars, like Jaguars, Morgans, and the big Austin Healeys, I prefer to stick with the MGBs, MG Midgets, and Austin Healey Sprites because there were more produced, more product available, and a lower price for a bigger market.


In one case, I bought a 75 MGB that a friend had stored away for five years after he realized he wasnt ever going to finish restoring it. He called me to ask if I was interested and I told him Id be buying it for re-selling the parts so I wouldnt be able to pay him what it was really worth. He said he only needed a little just enough to buy a new head for his 675 hp racing car.

I ended up paying $1200 for the entire car: Body, brand new re-built engine, and crates of new and used parts. I kept about $600 worth of parts for my own two MGBs, then started selling the other parts.

My marketing consisted of using eBay, my own website, the website of the Reno MG All British Car Club, ads in the British Marque Car Club News, an ad in the North American MGB Registry, telling my British car mechanic what I had, word-of-mouth to fellow MGB owners, and newspaper ads.

The more discreet I make the product, the more money I make. For example, selling a dashboard with all the instruments might bring $110.00. However, by stripping out the instruments, I can sell the dashboard itself for about $80, the speedometer for $35, the tachometer for $35, the oil gauge for $25, the fuel gauge for $25, the clock for $25, the light switch for $20, the brake check light for $20, and the other switches and bezels for maybe another $50.

I ship these parts by USPS, UPS, or bus all over the nation (with the purchaser paying for freight costs). After keeping out many parts for my own MGBs, I ended up making almost $6,000 on this project!

Just a couple of weeks ago, I bought a 65 Austin Healey Sprite and a 69 MG Midget (both fairly rare cars) along with two extra transmissions, two extra engines, 12 wire wheels, 5 regular wheels, new hubcaps, five brand new tires, extra doors, extra hoods and trunk decks, brand new upholstery and carpeting kits, extra windows, and crates and crates of other parts. The parts alone filled an 8 x 12 storage shed and a 12 x 16 storage building.

I took my time buying all this. He kept calling and emailing me back over a period of a couple of months, letting me know I was his only real prospect. The guy originally asked $3,500, but I told him there had to be enough to


make a margin while taking a risk. I ended up paying just $2,000 for all these parts. I even got him to agree to store some of the parts for up to nine months. Meantime, I did my research and believe I can resell them for a total of somewhere between $5,000 and $8,000!"

This is Steve again

A friend of mine named Shane is doing the exact same thing with used motorcycle parts. He runs a little motorcycle repair business out of his house and customers often give him old motorcycles when they find out that its too expensive for Shane to fix.

Shane cannibalizes these bikes for good parts and uses them for repairing other bikes. One day though, he figured out how much one of his cast-away junk motorcycles was worth if he sold the whole thing as-is needing serious repairs and all. Well, it was worth very little since most people dont know how to fix these things. Then he loosely figured out how much the individual parts would make him if he parted out the bikes and sold the parts separately. And that was the day Shane started an entirely separate business selling used motorcycle parts on eBay.

Obviously youll need some space around your house to store the parts like Barry and Shane, but Shanes used motorcycle part business doesnt require much space at all.

Guess what? The last time I spoke to Shane, he told me that he makes more money from selling the used motorcycle parts than he does from the motorcycle repair business!


Make Money Selling Used Cars With a Consignment Car Lot

You can make money selling used cars with a consignment car lot right in your hometown. This just might be the perfect used car business for you!

Recently I read about a guy in the Cayman Islands that was selling used cars this way. The need he was able to fill was that the local government had been cracking down on private parties parking their cars at the side of the street with For Sale signs on them.

This guy had a big empty lot where 250 of it fronted a busy street and this was a perfect location to be able to expose his cars to tons of walk and drive-by traffic.

The sellers would park their cars on his lot and give him an extra set of keys so he could let prospective buyers kick the tires and start the engines. If they wanted to drive the car or take it to a mechanic then they would be referred to the owner to handle that.

The guy usually has an inventory of about 100 cars for sale at a time but thought that he could handle five times that as more locals learned of his business.

Another bundled service would be to wash the cars once a week to get off the dust and rain that can accumulate. It will be just another touch to present the cars in an attractive manner. Of course along with that could be detailing, waxing, etc., all of which you would charge for.

The benefits for this consignment used car lot to the locals were...


The sellers were happy to find a place where they could legally sell their used cars.

The local government bureaucrats were happy to not have to deal with those For Sale cars taking up all the space at the side of the roads.

The consignment car lot owner was stoked to be performing a public service and to make money at the same time.

If you dont own a lot then perhaps you could make a deal with someone that already has a lot or any business with lots of space out front with good exposure.

And your used car business wouldn't have to be as involved as this guys with its one hundred cars out there. It could be as simple as just one car parked on the lot with a big "For Sale" sign on it, which is exactly what we are going to discuss in the next chapter.


Sell Cars From a Gas Station Lot and Become a Millionaire Like Bob

You can buy and sell cars from a gas station lot and make big money like Bob did. I became aware of this unique method from my brother in-law Mike.

Mikes brother Bob has owned a gas station in Pennsylvania for years (but you dont need to own a gas station) and one day Bob got the idea that he might try to make some extra money buying a used car and then reselling it later for a profit right from the lot of his gas station.

So Bob bought an old car and fixed it up and parked it on his gas station lot with a big For Sale sign on it.

POOFhe sold that car in no time!

Hmmm, I wonder if this would work again? Bob thought.

Bob went out and bought another carand sold that one for a profit too. Then Bob started thinking that maybe he had the beginnings of a profitable part-time business...and he did, because Bob has been buying and selling cars from his gas station lot for the last twenty years.

My brother in-law Mike told me that his brother (Bob) made a point of saving all the profits he made from buying and selling cars...and years later those profits made Bob a millionaire.

Can you see the potential for selling used cars from a gas station lot?

But what if you dont own your own gas station?


Then find someone that does and cut them in on the profits. You would get a highly visible place to park and sell your cars from, and the owner of the lot could turn a small portion of their parking lot into an automatic profit machine for themselves.

Actually, I wouldnt limit yourself to selling cars from just gas station lots either. You could do the same thing from the parking lot of a small convenience store, carpet/flooring store, tire storeor a million other small independently owned retail locations with highly visible parking lots where the business owners could make some more money.

Why would anyone be interested in doing business with me?

Dont sell yourself short! Because like you, these people are in business to make money, and if anyone needs to monetize every square inch of their business, its the owner of a retail business with the tons of fixed overhead to deal with every month.

Besides, the worst thing they can say is No thanks, Im not interested. Fine, then go ahead and ask them if they know any other business owners with parking lots or space outside their businesses that might be interested. Then call that referral and tell them that Joe at Joe Blows Tire Store referred you.

By the way, if you plan on eventually getting a used car dealer license, this could be a great way to get around all those rules and regulations that might require you to have a specific retail location with a desk, etc.

One of my readers of The Lazy Way To Buy and Sell Cars for Profit told me recently that she was going to curbstone some cars for a while to make some money and get experience and at the same time start looking for a retail location like an existing gas station where she could sell her cars from. She found one gas station immediately where she could do this but was holding out for another place that would cost her less per month.


If you think this sounds too simple. You're right. It is simple. Now go do it.

UPDATE: My brother in-laws brother Bob passed away in June of 2011.


Exporting Used Cars For Profit

Exporting used cars for profit is one facet of buying and selling cars that I have yet to do, but I saw a TV show recently that got me thinking about the huge profit potential. I don't remember the name of the TV show now, but it was one of those half hour shows that re-enacts real crimes.

The story was about this guy from China that was running the largest car theft ring in U.S. history. The NYPD figured that this guy stole something like $120,000,000.00 (Yup, that is 120 MILLION!) USD worth of high-end exotic cars.

The thing that was confounding the NYPD was that these cars were totally vanishing with no parts from the stolen cars turning up anywhere. No record of the cars appearing on street cameras, and no paper trail. Nothing.

These stolen cars were disappearing without a trace!

What happened is that this guy would immediately drive them to a warehouse in New York City where they would fix anything that got broken during the process of being stolen (window glass, ignition switches, etc.).

Then after a few days of "cooling off" they would drive them in busy day time traffic so they would blend in with the masses to a container where they would truck about 4 cars at a time to a shipping port in Long Beach, California.

Then the cars would be shipped to China where they would be sold for huge profits.

In time, the thief got so bold that he was breaking into Mercedes Benz dealerships at night and driving off with their entire inventory of brand spanking new Mercedes. Seriously!


Eventually one of his delivery guys got stopped while driving one of the stolen cars for something dumb like a burned out tail light and immediately squealed to the cops about everything.

This is what really got me interested in the profit potential involved in exporting cars

In the show they said a car worth $60,000.00 USD would sell in China for $120,000.00 USD. Keep in mind that these guys were stealing them but a 100% gross profit doing this legitamely is pretty damn good as far as Im concerned.

People all over the world love US culture. Go figure. They love all the crazy celebrity drama that guys like me cant even begin to understand.

And as third world countries (like India and China, etc.) become more industrialized, the wealthy want toys and expensive stuff that makes them look all pimped out.

Of course I dont want you to do anything illegal or dishonest, but the money you could make from exporting used cars for profit might be close to theftaccept its not at all.

But I cant afford to buy a car for $60,000.00

Okay, but after thoroughly researching the subject of exporting used cars for profit, maybe you can find someone willing to invest some capital in your venture for a piece of the action.

How will I sell the cars?


You will need to find someone on the other end you have total trust in. Maybe you have relatives offshore you can talk to or they know someone where they live that would be a good match for you. I would do everything you can to check them out and of course all funds should be placed in an escrow account and not released until both parties are satisfied with the vehicle(s).

What about exporting cheaper used cars?

Yes of course you should check that out. You need to find out what all the shipping costs and possible tariffs are to see if it would be worth exporting cheaper used cars. In fact, exporting cheaper used cars might work better depending on the country you are exporting to. You would have to piggyback the cars in the containers. Perhaps you could put 4 cars in one 40 container in a double-deck fashion, which by the way was how the thieves were transporting those stolen cars to China.

I was watching a surf movie about these guys that bought two used 4WD vehicles (1 Toyota pick-up and 1 older Suburban) and headed south to surf Mexico and Central America. Their objective was to surf their brains out and film perfect waves along the way and then sell the movie later. The movie was called Zen and Zero.

They drove as far as Costa Rica and sold the two 4WDs they bought in California for enough of a profit that it paid for much of their trip. They didnt make as much as they hoped because there was a big tariff the Costa Rican government imposes on import cars, so make sure you check out all fees and tariffs involved.

I spoke to someone quite a few years ago that wanted me to find clean vintage muscle cars in the US and then export them to him in England. He said people were paying crazy prices for muscle cars over there. I didnt get


into it because I had too many other things going on at the time but that might be worth looking into.

Thats all I know at this point about exporting used cars for profit. I realize Im only touching the surface here, but with the potential profits involved, exporting used cars for profit is definitely something worth researching!


Why You Should Consider Buying And Selling Used Cars For Profit

It doesn't take any special skill to make money buying and selling cars. Race, religion and gender don't make the slightest difference and neither does age.

Buying and selling cars can be a great way for the retired to supplement their income as well as college students. Buying and selling cars can be a great business for the stay at home mom too.

Buying and selling cars is a nice way to make money for just about anyone who wants to get off the treadmill and out of the rat race.

Buying and selling cars can be a wonderfully simple way for anyone to make good money without a huge outlay in time, labor and money.

There is one test to determine if you can buy and sell cars

Get a mirror and breath on it. If it fogs up, you can do it!

You may not make a million dollars with this like my brother in-laws brother Bob did, but it can be a great business to use as a springboard whereby you will have the time to get into another business where maybe you could make your fortune.


Having a life free of the daily commute will allow you time to spend with your family and time to enjoy a hobby or sport. Once you learn the ropes and are comfortable with this business perhaps you can start playing that musical instrument that you've been putting off for years or maybe you can learn how to paint, or windsurf, or just do some creative loafing for awhile!

So, why buy and sell used cars? If I haven't given you enough reasons yet, consider the fact that a used car is one of the most needed, used and traded commodities in the world. Over 200 million vehicles are registered in the United States alone.

Many of us love cars and some of us consider them a necessary evil, but the fact remains that most of us still need them. You can help fill that need by finding cheap cars that you can sell for up to $5000.00.

In this price range (assuming you do what is necessary) you should be able to sell them fast, because at this level most of your buyers won't have to hassle financing through a bank and can more easily cash you out.

You'll find it to be much easier starting out because your outlay in cash will be minimal and so is the risk, plus you'll have a quick turnover of your money in this price range.

When I buy cars the way I discuss in The Lazy Way To Buy And Sell Cars For Profit and prepare them the right way, I can usually sell a car to the first person or at least the first few people that look at my cars for a quick profit. Ive had a few car deals where I broke even (especially when I was just starting out) but I have never lost money on a deal and those break even deals were ones that I learned a lot from that helped me with future deals.

Last year we had some friends from England visit and they were amazed at how much Americans throw away. Its true, and you wouldn't believe how many cars I've rescued from an impending trip to the junkyard.

These were all cars I bought from private parties who just didn't know, or didn't care to know that all their car needed was a little care. These were


cars the owners thought were ready for the junk yard but only because of neglect and ignorance.

And don't think I spend all day getting my hands greasy. No way! Most of the cars I've bought were runners. Most are great runners too and most of the cars that weren't running well when I bought them usually just required spark plugs or maybe a new battery or something else minor.

A very small fraction required major repairs, like maybe a new clutch for instance and those were cars that I had a mechanic fix for me.

I'm still amazed at how often I buy nice cars from people that I know are making very little money at their jobs. The sad thing is that if they read The Lazy Way To Buy And Sell Cars For Profit then they would have been able to sell their car for many hundreds more than what I paid them for it.

You'll find this phenomenon of people selling stuff for less than what its worth with any product that you can buy and sell, not just automobiles. I think most people get so wrapped up in their treadmill of a life that they don't take time to think things through very clearly. This business will allow you the time to think.

I bought a Honda Accord once for $350.00 that ran okay. It lacked power and kind of hesitated a bit on acceleration. The owner of the car really thought it needed a minimum $300.00 to $500.00 repair and he just didn't want to hassle with it.

I wasn't quite sure what the problem was, but based on the methods I use on my Check Out a Car Checklist I suspected the engine was still sound so I went to K-Mart and spent a few bucks on spark plugs, put them in and then it ran like a champ.

I cleaned it up and sold it a few days later for $1100.00 cash. I could have had it repainted and that would have put another $1000.00 profit in my pocket, but I wanted to flip it quickly.


A few words about buying and selling old clunkers

If you think you have to dumpster dive for old clunkers like I was doing then youd be wrong. You dont. If you know there is a market for the kind of vehicles you want to deal in, then you can buy and sell cars at whatever condition or price point you choose. I was into buying old funky cars because I was living in a low population area with a finite supply of cars and most of my clientele were surfers, windsurfers, and refugees from reality that didnt care what they were driving as long as it was cheap and would get them to the beach and back. In other words: there was a demand for cheap transportation where I was living and I was filling the need. So if you choose to not deal in old cars then go for it. I feature a guy named Nick on my website that was dealing exclusively in super expensive exotic sports cars. And just so you know, newer nicer cars are far less work to prepare for selling than old beat to hell junkers.

Is buying and selling cars for profit recession proof?

Yes I think buying and selling cars is one of the few true recession proof businesses along with grocery stores, moving companies, trailer and truck rental companies, and undertakers. Why? Because even when the new car buying market takes a dive, there is always a demand for basic transportation used cars.

Study The Lazy Way To Buy and Sell Cars for Profit and apply what you learn and you'll be doing this too, and maybe with your first sale! You'll probably end up doing much better than I did when I started because you'll have The Lazy Way that'll help you eliminate about 95% of the trial and error that I had to go through.


Ive shown you a few different ways to make money buying and selling cars and Im sure once you get started that you will come up with more cool and super profitable ideas too. It would be great if you contacted me to tell me about them.

The first thing to do is to start reading The Lazy Way To Buy and Sell Cars for Profit.

The Lazy Way will get you moving towards making some very profitable used car deals right from your own house and in your spare timeimmediately.

Ask yourself this

How much better could my life be with just an extra $1000.00 to $3000.00 per month coming in?

And

Can I devote an average of 30 minutes per day?

But one of the biggest challenges when starting anything new is to avoid procrastinating. I read once that the biggest nation on earth is Procrasti-NATION. Yikes, we all need to stay away from that life-sucking place!

Start now by making the time, even if you only have 30 minutes per day, to make consistent and systematic moves towards accomplishing your goals.

And in order to feel like you are progressing, you will need to make these moves on a daily, weekly and monthly basisand believe menothing


will help you to feel this progression like stuffing your pockets with cash after each car deal!

I hope you gained something from reading this and feel free to contact me with your questions.

Here is the Table Of Contents from The Lazy Way To Buy And Sell Cars For Profit

Table Of Contents

Introduction 1

How To Buy a Used Car - Section A 9

A1 - Starting With a Rifle Instead Of a Shotgun 10

A2 - Sources For Finding Killer Used Car Deals 21

A3 - How To Read Ads and Identify Dont-Wanters 35

A4 - Super Duper Phone Interrogation Techniques 49

A5 - If The Seller Doesnt Answer The Phone 64

A6 - How To Inspect a Car 72

A7 - How To Test Drive a Car 85

A8 - How To Buy a Car For a Fraction Of Its Price 94

A9 - How To Find Your Most Profitable Niche 105


A10 - Typical Sellers You May Encounter 110

How To Prepare a Car For Selling - Section B 115

B1 - How To Prepare The Engine Compartment 116

B2 - How To Prepare The Exterior 119

B3 - How To Prepare The Interior 125

How To Sell a Used Car - Section C 130

C1 - How To Make Your Ads Command Attention 131

C2 - How To Write Ads 139

C3 - How To Sell Your Car Fast 150

C4 - Where and How To Advertise a Used Car 166

C5 - Typical Buyers You May Encounter 173

How To Price a Used Car - Section D 177

D1 - How To Find Real World Used Car Prices 178

D2 - How To Find Used Car Book Values 185

Car Dealer Licenses - Section E 190

E1 - How To Sell Cars Without a Dealers License 191

E2 - The 3 Kinds Of Car Dealer Licenses 203

E3 - Overcoming Complications Of Getting License 205


E4 - Ad For Finding Licensed Car Dealer 216

Auctions - Section F 217

F1 - Used Car Auction Basics 218

F2 - Used Car Auction Dos and Donts 226

F3 Mannheim Public Auction Locations 235

More Good Stuff To Know - Section G 236

G1 - Humans You Need To Find Now 237

G2 - Tools Of The Trade 243

G3 - How To Find a Vehicle Transportation Company 249

G4 - Epilogue 251

Frequently Asked Questions 254

Resources 282

Documents

5 Ways to Make Money Selling Cars