First select the type of car you want to buy. I cannot help you directly with this, as there are so many variables involved, some cars will sell better in some areas than others. This is where your market research and knowledge gained will prove invaluable. Beware of the lemon cars – those that will be difficult to sell.
Seasonal variations can affect prices, with open top cars making less money in the winter time and more in the sunny summer. Likewise all terrain vehicles can be at a premium in the winter especially if there is bad weather and sometimes easier and cheaper to buy in the summer. Buy at the right time when prices are low, wait a few weeks, then sell when demand is high.
Avoid high mileage cars, those without service history and damaged repaired cars, as these can be harder to sell, but at the right price, of course anything sells.
Once you have an idea of the type of car you are going for, your search should start by checking out your local papers, going to car auctions, looking on the internet, asking work colleagues, friends and relatives, checking out local ads displayed in shop windows, word of mouth. There are also ex lease vehicles advertised in the papers and the internet. These can produce bargain buys.
Check out your local dealerships and car lots, in fact anywhere that sells cars and has part exchanges. Most dealers will resell these themselves. but a few do not.
Some dealerships are not interested in retailing older cars to the general public because of the possible hassles involved. They will either sell to the trade or send the car to auction. Most have well established outlets for clearing their part ex’s, but you could be at the right place at the right time.
The main thing with this, is if you are lucky and establish a good relationship with the dealer, they may be willing to offer you first refusal on all their part exchange cars. This is important as a ready supply of cheap sourced clean cars means you have the means of making a lot of money. The thing with this is, do not mess the dealer around or you will loose the relationship. Be positive with them and up front.
Placing wanted ads in the local press is a method which often works really well as you could get calls from owners of cars who are willing to sell at less than trade price just to obtain a quick sale.
I have known dealers approach lately bereaved widows whose details they have obtained through obituary columns in the newspapers to ask if they have a car they wish to sell (normally they have – from their late husband). Unscrupulous, but effective.
As with most ways of making money, the car you decide to go for should be researched really thoroughly to ensure that there is a strong demand for that type of car and that you can make a profit.
Market forces and demand dictate and influence prices. New cars, just launched by the manufacturer are also interesting because these can sometimes attract a premium over the new price if really popular and for one reason or another are in short supply, ie supply is outstripped by demand, because the manufacturer has a delivery problem. In effect the nearly new second hand price becomes more than the new price.
Beware though , because this will be short lived, as once the supply problem is sorted and rectified by the manufacturer, then the profit disappears. It is rare to find this nowadays, but it does sometimes happen. Mileage, color, number of doors, history or lack of it, engine size, gas or diesel, condition, has the car been smoked in, damage, insurance rating all affect price.
Choose a car that you can be sure will make a profit. Again I emphasize, research your chosen vehicle thoroughly. For a starter, this is not easy, with the number of vehicles offered for sale today, but ask around with your friends, colleagues and family and try to establish as to what is selling and what is not. Try to go for mass market cars which are in high demand and in short supply.
Reading car guides will assist and point you in the right direction, although sometimes the media can offer misleading and biased information.
The harder it is to buy a particular make and model of vehicle the faster and easier it will be to sell. Nowadays, with fuel prices being so high and continuing to increase, economical vehicles make good sense.
Remember just because a car seems inexpensive it does not mean that there is a ready profit to be earned.
Having a ready customer for a car, such as a friend or relative is really advantageous as all you need to do is find the right car for them add a profit and job done.
A final consideration is that there is continuous price depreciation for the whole time you own the car, even if it’s locked away in a garage with little or no use. The longer it takes to sell the less its value.