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The simple rule of money money from anything is to buy it for less than you can sell it for. The hard thing is to try and find it for less than you can sell it for. There are many sources to buy from, here I hope to cover some of them.
This guide is for information purposes only. Anyways make sure you are confident in what you are buying. We will not be held responsible for you buying a lemon or getting ripped off or losing money.
Valuations
Before you buy a car you need to know its true value. The trade only CAP Black book is the motor trades bible for car values, but it is by subscription to trade only. The best way to find a cars true value is what somebody will pay for it, I always look on Ebay Motors to get a feel of what different type of cars are worth. I use Ebay as a guide as the final auction value is usually a cars true worth as somebody has bid that much on the car and is willing to pay it. At the sametime it is still worth checking out Autotrader and the local paper for values. It is also worth knowing that car values change up and down the country. Generally car a worth a bit less up north than they are down south.
Remember you are buying to sell on, not because you like the car. Old Jaguars are great, but most are cheap for a reason - nobody wants them as they are expensive to run, and the bargain Jag you just brought might be your everyday car as you cannot sell it.
Sourcing cars
There are a lot of cars for sale, but where do you look? Below are some of the best places to look for bargain cars suitable for resale and for you to profit from.
Friends and Family
Spread the word that you buy and sell cars, if people trust you and like you they will want to deal with you. Sometimes people know of somebody who just wants to get rid of a car for whatever reason and will refer you, or they may spot a cheap car and let you know.
Also people will start to ask you to find them a car for themselves, or other family and friends of theirs. Just becareful on your mark up as some people will be unhappy if you try and make money out of them.
Trade in cars from Main dealers and other garages
Main dealers are great for trade in's, but most will not sell trade in's to the public. Some will send all there cars to auction, not even the staff can buy them. I would advise you not to bother with main dealers until you have brought and sold at least a few cars. Sales departments are busy places and they do not tolerate people who will not make them money.
If you would like to try a main dealer ask to speak to the sales manager, explain that you are interested in buying trade in's as a business. If you are lucky enough to be offered a car, don't waste too much of their time, quickly look over the car, check the paperwork and history, but don't take it for a test drive or haggle too much - if you do you will never buy from them again. Sometimes if you have brought a few good cars from them they will expect you to buy a bad one they just want to clear from the site, it will be cheap but you may have to scrap it as they do not have the time.
It amazes me the amount of weird and wonderful cars on Ebay Motors, but look to what is easy to sell on and how for how much. Don't bother looking to buy from the main car section, but instead hunt out the bargain. I have used the tactics listed below, click on them to do the search for you.
- BUY IT NOW - search cheapest first, no auction somebody might just want to sell something quick.
- Incorrectly listed in wrong section
Click here to find mislisted cars in the following sections
- Parts
- Accessories
- Wheel, tyres and trims
- Manuals and literature
- Tuning and styling
- Classics car parts
- Automobilia
- Other parts and accessories
Sometimes just doing a direct search on Ebay can find cars mislisted. Type in the name of a car and then refine the search by searching by highest price item first - this will put all the cheaper parts, brochures, manuals, etc at the bottom and make it easier to find the cars.
Salvage companies and auctions
Only buy a salvage car if you are sure you know what damage the car has suffered. Insurance companies do not write of good cars. Category C or D write-off is one that insurers consider unecomonical to repair but one that could be repaired and returned to the road.
Category A and B should never be returned to the road. A Category B write off is one that is so badly damaged it can only be used for the salvaging of spare parts, while a Category A is one that is sent to the crusher. The repaired cars may have to have a Vehicle Identity Check (VIC) this is to prove the cars identity and to help eliminate 'ringing' - for more information about theVehicle Identity Check please see the VOSA website http://www.vosa.gov.uk
Flood damaged cars look great apart from a good clean, but they have been written off for a reason, think what damage could be caused by water in the electrical system, interior and possibly the engine. Cars driven through deep water can suffer with engine damage from hydrolock, I have seen conrods through the side of engine blocks before from this.
Worth looking at these sites to get some idea of values and damage suffered.
Salvage can also be found on Ebay, could also be a good place to sell salvage cars.
Car Auctions
Not all cars sold at auction are cheap, Sometimes cars brought at auction have been more expensive than private sales because the traders who buy them can sell the cars for more will a warranty and finance. Visit a few auctions before bidding to get an idea of prices and the quality of cars available. Watch other people round the car(s) you are interested in, they may spot something you missed. Most small local auctions consist of privately entered cars or crap that main dealers and other garages cannot get rid of. You may be lucky and come across an auction which is deposing of a companies fleet or finance repossessions.
Try larger auctions such as
Ex lease, fleet or hire cars are good buys as they usually have full service history and are well maintained - however some can be quite badly abused by the staff that used to use them. Check for damaged trim, scruffed alloys, etc.
Private sales
Local papers and free ad papers can be a good source, as can a car with a for sale sign in the window. Speak to owner, ask why they are selling it, history, condition etc. Point out any defects they have not shown you, such as scratches, dents, tyre wear and tread depth if low and hagging using these as a reason to lower the price.
Check these links
Importing
If you import a car within the EEC you will not have to pay any import duty or VAT - this may change so check with Customs and Excise.
Cars imported from outside of the EEC such as Japan are required to paid duty and VAT. An SVA test and MOT is required may be required. Remember to calculate shipping costs, tax and duty, and any conversion costs.
Below are a few Japanese websites worth looking at
Now you know where to look, take a look at our buying guide to know what to look out for.
Once you have the car use our sellers guide.
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