How to sell cars

Selling cars takes more than a slick sales pitch and good coffee - you need to understand the fundamental elements of how to make sure you turn a good profit.

Steps

1. Understand the difference between retail and wholesale dealerships. Retail Dealers have more restrictions as liability which required more dealer insurance as well as a larger dealer bond, but retail dealer are the only dealers allowed to sell to the public. Wholesale dealers may only sell to other dealers.
2. Secure good deals during the acquisition of the vehicles. You are purchasing the vehicle below market value, which will help you profit from selling the vehicle at market value.
3. Prepare the vehicle for, smog check, safety check, etc.
4. Market the vehicle to buyers once the vehicle is front-line ready( ready to be sold). This may mean that you tell your friends and co-workers that your car is for sale, or maybe you must market the vehicle in the paper, through email, online or elsewhere.
5. Create a "Jacket" for the car, one that will profile the vehicle as well as help you keep track of where you market it and what is effective.
6. Include photos and any known information about the vehicle in the "Jacket."
7. Sell the car. Often price is a point of intense negotiation. This is why acquisition is so important. The further below market value you acquire the vehicle, the more "wiggle room" you have to sell the vehicle at a profit.
8. Move on to the next car!

Tips

• Acquisition is critical!
• To calculate your purchase price and potential profit, use this as an example:
  • If market value of the vehicle is $10,000, you buy it 25% below market at $7,500($10,000 x .25 = $2500, $10,000-$2,500 = $7,500), you have a chance to sell it for at least the market value, making that 25% in profit.
• There are two ways to purchase, either as a buyer for the general public, or on speculation. General buyers purchase what their customer specifically request, speculation buyers buy based on their knowledge of the market and the below market price for the car.
• If you are meeting the buyer to describe the car, avoid saying "umm.." and "like" alot. Otherwise, the buyer thinks you have no idea what you are talking about.

Warnings

• During the months of August through the beginning of October, almost all vehicles drop in price. The next year's models and dealers' inventory for the current year flood the market, increasing supply and causing prices to drop. Be wary of any vehicle purchases in July and August.
• Buying on speculation is complicated - leave it to the pros until you're more knowledgable about the industry.

Things You'll Need

published 3 years ago

schmeidi

641 points