One good way to bring in money is to buy repo cars at auctions and resell them privately.
Entrepreneurship in the Automotive Industry
Many people around the world are looking to make money through entrepreneurship. Owning your own business and being in control of your own income, working hours and working life is a wonderful way to live your life, if you are successful. You will not need to worry about keeping track of the leave that is due to you, sticking to your lunch hour or the stress of asking your boss if you can leave early to make your child’s school play. If you are able to start your own successful business, you are on the fast track to a good income and the freedom to live your life your way.
However, many people run side businesses or do freelance work while they work full time jobs. The extra money is always helpful and a small side business could grow into something that you could do full time. Buying repossessed cars from auctions at low prices and then selling them on privately is one such way to bring in money. If you have the time and the ability to work hard, this could grow into a second hand dealership.
Repossessed cars at auctions
Financial service providers like banks who offer car loans will often repossess vehicles if the clients have not paid their monthly payments or if they have not paid enough. The repossed vehicles are then auctioned off so that the financial service provider can make their money back. Often, repossessed vehicles are still quite new and might have their service plans or rust warranties still in place. This would save the buyer money. Buying at an auction means that the potential buyers decide what the car is worth.
To sum, the benefits of buying a repossessed car at an auction include:
- Repossessed cars are often still new looking and have low mileage.
- Repossessed cars might still have their service plan intact saving the buyer money.
- Repossessed cars might still have rust and other warranties, which would also save the buyer money.
- Buying at an auction means that the potential buyers decide the price and saves them from sellers pushing up the price beyond the car’s worth.
Choosing a repossessed car
Choosing a repossessed car can be difficult and stressful, especially if you are not a mechanic or car expert. Take note of the following tips to ensure that you make the right decision when looking for repossessions.
- Look for reputable auction houses that have been around for a while and have a history of good service, many happy clients and honest staff.
- Make sure you do your research on cars in general. Know what obvious problems to look out for.
- If you know someone who is an expert on cars, ask them to accompany you to the auction. Get them to check the cars for problems and follow their advice on which cars to bid for.
- Have a look at the vehicle market at the moment. What cars are most popular? Which cars would be easiest to sell on?
- Make sure you know what you are looking for before you go to the auction. Some auctions allow you to check out the cars beforehand so that you can make a decision.
- Decide what your budget is and make sure you stick to it. You do not want to get carried away and spend more than you can afford.
Selling the car on
Once you have your repossessed car, you will need to advertise it. Advertise your cars online on Gumtree and Junkmail as well as print classifieds. Make sure your advertisement is as professional as possible. Check your spelling and grammar, make sure you give ALL the necessary information and add several well taken photographs of the car in good light once it has been cleaned.
TIP: Car Pictures Tell a Thousand Words
Check out the informative video below on how to take a proffessional looking photo of your vehicle/s for advertising purposes.
Video: Take Car Pictures to Help you Sell your Vehicle Quicker: