How to make money buying cars from auctions

No «Sales Numbers» post without a full write up. Screenshots and photos only will be immediately deleted. If your post is asking about what to do about an item take-down request or legal notice, we’ll remove it. Follow the advice. Complete Beginners Guide to Ebay. Beginner’s guide to xuctions books with FBA. Flipping Central Discord Server. How I flip used cars from public auto auctions. Since I had a lot of interest in this topic, much more than I thought I would, I’ve decided to do a separate AMA for the process of buying cars at auction and selling them via Craigslist. Here is the list that I get for one particular car auction I go to. This is the last page which gives a breakdown on the title abbreviations. The number on the left is the car number the auction house give for their own internal use.

An Explanation of Salvage Cars and Where They Come From

The short answer is, «absolutely». Yes, there are auctions you do not need a Dealer License to participate in anyone can go. Sound enticing? Well, while do-able, I don’t want it to sound too easy. My own preference is to «cherry pick» the auctions for the later-model and lower-mileage cars. While this seems to work well for them, it’s just not our marketplace. It also takes more time and those doing it really have to be fairly expert about cars. So, I’m going to write about the potential income possibilities only from my own point of view, bearing in mind that there are other car buying and selling strategies that work as well. The concept of «flipping» cars is quite simple actually. What you want to do is buy a car at a price far enough below book values that you can sell it at an outstanding price and still make a nice profit. You can find such vehicles by calling and identifying desperate «by owner» sellers.

Where Can You Buy a Salvage Car?

But this takes time and strong negotiating skills. Also, these sellers would likely trade in their cars before accepting a deal below trade-in value. Public car auctions are usually a much better option. There are many cars to choose from and the prices paid can be difficult to beat. And the number and quality of the vehicles at these auctions has increased dramatically in recent months due to the bad economic times we’re currently in. But what do you look for in a vehicle to capitalize on this? Well, I don’t really have a pure definition I can put into words. It’s mostly a «common sense» thing, mixed in with a little knowledge. What I can say is that you’ll know them when you see them as you preview the listings a few days before an auction. They kind of just jump out at you. I’d also suggest going after almost any vehicle that stands out because of «extremely» low mileage driven less than 8, miles a year.

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A small dent in the tailgate of a Chevrolet Silverado may just be a parking lot thump, not signs of misuse. Related wikiHows. In many cases, this will be due to a vehicle sustaining a lot of of damage in a collision or some other accident. Inspect cars on the lot up close. With this, you can take advantage of a third-party source to request a vehicle history report. Perfect Shelby Cobras, Ferraris with long racing pedigrees, glorious Duesenbergs, exceedingly rare muscle cars and old Mercedes roadsters so gorgeous that your eyes water cross the block and sell for insane prices. A lot of the school buses and trucks get bought by brokers looking to ship them overseas to poorer countries that will use them for public transportation. You only need to work with an insurer that specializes in salvage cars to secure comprehensive coverage. Attending a few before you place a bid yourself would be even better. It’s easy to get carried away during bidding and wind up spending hundreds more than a car is worth. Co-authors: 3. Look for rust spots, dents, scratches, and any other signs of damage or excessive wear.

Getting Started: Learn the Ropes & Find Undervalued Cars to Buy

Then, try your best to avoid ending up in a self-destructive bidding war. This article was co-authored by our trained team of editors and researchers who validated it for accuracy and comprehensiveness. How to make money buying cars from auctions, they cited information from 16 references.

Categories: Auctions. Log in Facebook Loading Google Loading Civic Loading No account yet? Create an account. Edit this Article. We use cookies to make wikiHow great. By using our site, you agree to our cookie policy. Home Categories Hobbies and Crafts Collecting. Article Edit. Learn why people trust wikiHow. Learn more Method 1. Search online for government vehicle auctions near you.

Look for public auctions in your local newspaper or online. You can find notices for public auctions in the classified section of a newspaper. Stick to government auctions if you want more transparency. Because of the transparency of government auctions, competition can be fierce, so it may be difficult to find a good deal. For this reason, you should assume that any car you find at a public auction will require fixing. Method 2. Research cars that interest you online.

Many auction houses will put out a list before the day of the auction with the make, model, and year of all of the cars that will be auctioned off.

If you go to your first auction planning to buy a vehicle, you may find the whole experience a bit overwhelming and confusing. Attending a few before you place a bid yourself would be even better. Take notes about how the bidding process works and familiarize yourself with the environment.

While auction cars are generally much cheaper than cars sold at dealerships, buying one is a riskier investment. Method 3. To place a bid on a car at government auctions, for example, you must be at least 18 years of age. You may also be required to provide your social security number or taxpayer ID number.

Arrive early at the auction house to register as a bidder. As part of the registration, you may need to provide evidence that you have enough money to buy a car, like a bank statement or a credit card. Inspect cars on the lot up close. If you see any cars that interest you, look them over closely. Look for rust spots, dents, scratches, and any other signs of damage or excessive wear. Write down the make and model of the cars that seem to be in the best shape and their lot numbers.

Things you should look for, include: puddles under the vehicle, an uneven stance, scored brake discs, and paint overspray, which can be a sign of repairs. If you see a car you like, look for its VIN at the base of its windshield. This will allow you to see whether it has experienced any significant damage in the past. Look for the VIN in other places where manufacturers commonly put them, such as on door and trunk lid stickers.

Different VINs on a single car are a clear indication that the car has undergone repairs after a major accident. Raise your paddle to place a bid on a car. Continue bidding on the car until you reach the maximum price you set for. Make sure you know what type of payment the auction house accepts. Unlike dealerships, auction houses do not offer financing options for car purchases. When the auction house accepts your bid, you are contractually obligated to pay for the car and move it off the lot.

Include your email address to get a message when this question is answered. Already answered Not a question Bad question Other. Related wikiHows. Article Info This article was co-authored by our trained team of editors and researchers who validated it for accuracy and comprehensiveness. Categories: Auctions Print Edit Send fan mail to authors. Yes No. Cookies make wikiHow better. By continuing to use our site, you agree to our cookie policy.

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3 Tips For Buying Cars At Auction

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It outlines:. Successful car flippers must:. Dealer License Requirements Every state requires prolific auto sellers to register as dealers.