You don't have to be a mechanic to make money on a used car. In fact, most people can easily buy and sell cars and make several million rupiah in profits if they can find the best deals. The most important thing to remember is that you will make a profit when you buy a car, not when you sell it. So, finding the best deals should be your priority. With a little bidding and clever negotiation, you can sell a used car quickly and make a profit.
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Method 1 of 3: Buying a Car Effectively
Step 1. Look for cars for sale on auctions, eBay, and Craigslist
You will most likely not find a good used car to sell through a dealer because they usually charge the highest price for the car. However, people who sell their own cars do not need to spend money to hire employees or warehouses so they want to sell cars at a much cheaper price. Limit your search to get the best results.
- Do not immediately dissuade interest from selling "broken" cars because often these types of cars can be resold. However, you should ask what the damage was. Broken windows certainly have a different level of damage from frame damage, but both of these things can make a car labeled "broken".
- The Carfax or OLX websites are some of the best sites to find cheap cars for sale.
Step 2. Use an online estimating service to find out the approximate price
Websites like Edmunds and Kelly Blue Book allow you to enter data about the car type, brand, year of manufacture, and condition to see the best selling price. This can be used as a negotiation tool, and you can use it as a bargaining tool if the seller charges too high a price. These sites usually have a rating system as well. So, you can check the record of the damage to the car. Some tips for using the sites above are:
- Take note of the data listed in the " dealer's price." You can usually bid lower than that amount because personal sales don't require a lot of paperwork.
- Check multiple websites at once. You should also always assume that the car being sold is in worse condition than advertised – most people will try to sell the car at the highest price online and tend to overestimate the condition of the car being sold.
Step 3. Always start the car from the engine is still cold
Beware of car engines that have been started when sold. Engines that are still cold need more energy and momentum to start so you can detect any damage to the engine motor when it is started. Be careful of:
- Difficult car to start.
- Loud noise or friction sound from inside the engine.
- A ticking, spinning, or vibrating sound when the car is started.
Step 4. Check the amount of oil and its color
While doing this, ask about the maintenance of the car, starting from when was the last time an oil change was done. The clearer the oil the better. The oil should not be dark brown or thick brown, especially if it has been replaced less than 6 months. If you see oil mixed with water or a solid (like metal), cancel the deal – the repair isn't cheap.
Ask the seller to start the engine 5-6 times, then pay attention to the exhaust. If there is black smoke or a large amount of smoke, you should cancel the transaction, especially if there is also a small amount of oil in it
Step 5. Check the underside of the car for leaks after the engine has been running for a while
A little dripping water is not a problem. However, dripping oil or radiator fluid is intolerable and you will have to cancel the transaction. Another way to check this is to have someone start the engine with the radiator cap removed. If you notice air bubbles appearing in the water in the radiator, cancel the transaction – the head gasket is most likely broken.
Is the engine temperature hot? If so, chances are there is hot water leaking in the car (not radiator fluid or oil!). You can use this as a bargaining chip. This problem is likely caused by a valve leak causing overheating. You can fix this seemingly serious problem at a low cost
Step 6. Open the front cover of the engine, then watch and listen to the sound of the engine
There should be no loud ticking or growling sounds. You should be able to notice for yourself if you hear a strange sound. Have someone start the engine in neutral, then see if the engine still sounds good while paying attention to its shape. Turn off the engine and inspect the car belt and hoses, looking for any traces of corrosion, rust, or parts that look damaged. Even if 1-2 parts of a car belt are easy to repair, too much repair can cut the profit you are aiming for.
Step 7. Drive the car you want to buy if you can
If you're good at bargaining and have the skills of a mechanic, you can buy a car that won't start cheaply and have it repaired. If this isn't possible, you should try driving the car you want to buy. Drive cars with various speeds and driving styles. Ideally, you should try to drive in densely populated locations and on highways to get up to speed. While doing so, be careful of:
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Steering:
Is it easy to play and responsive?
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Brake:
Can the car stop quickly, especially when you brake suddenly? Also, does the car stop in a straight line?
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Transmission:
Are gears easy to change? For an automatic car, you should be able to change gears from forward to reverse within a second and a half. A longer deadline is a bad sign.
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Electronic features and tools:
Are the lights, windows and coolers working? Is the odometer on or not working? (does the owner know how long it took it to break?).
Step 8. Use all the damage you find as bargaining chips to get a bargain
This is very important, especially if the owner doesn't mention the damage in the ad. Most people are very honest about the damage done to their vehicle, but you still have to keep looking for other problems in order to negotiate a price. If there's a minor or major problem that the owner didn't tell you, but you still believe you can fix the problem cheaply, you can make a much lower offer.
- While inspecting the car, point out the problem you found to the owner. Most people will trust a buyer who is calm and careful when checking the condition of the car so that it will be easier for you to make an offer.
- Check the knowledge of the car owner about the vehicle. If he seems confused by the condition of the car's engine, you can use it to point out any problems.
Step 9. Make sure to get a copy of the car ownership document
If the owner does not bring ownership documents, you must be extra vigilant. Proof of Motorized Vehicle Ownership (BPKB) is required to register the car, as well as obtain insurance. If the owner can't provide it, you have to think again about accepting the hassle of reprinting proof of vehicle ownership.
For high-value cars, use a website like CarFax to find out the history of the car's ownership to avoid problems later on
Method 2 of 3: Selling the Car at the Highest Price
Step 1. Determine the lowest selling price and the selling price you want before selling the car
Use the same estimator's website as when buying a car to get a reasonable price estimate. You can use OLX or local ads to find buyers. If you don't care how fast a car sells, put a high price on it. If you want the car to sell quickly, set a lower price and note that buyers shouldn't bid on it.
- Even if you say you can't bid, people will still do it.
- The term “negotiable” is used to indicate that you are willing to negotiate a price. This is a powerful way to grab the attention of potential buyers.
- If a car is highly resaleable or rare, you can earn more money at auction than selling it yourself. Note, however, that all types of auctions are the same as gambling: you can get a lower selling price, or even a much higher one.
Step 2. Take the car to a mechanic for inspection and repair, as long as it's cheap so you can still resell it for a profit
This is why you should set the selling price first. If the repair costs make the car worth more than it sold for, you're at a loss. However, if you can find a cheap car with cheap repairs, you can make a profit. While buying a car that needs repair is a gamble, a smart buyer can turn it into a big profit from minor problems that arise simply because the old owner was lazy to fix it.
- Be sure to check online for a solution to your car problem. Can you convince potential buyers that the problem is fixed?
- What repairs can you do yourself? Older cars usually have a lot of self-repair kits that you can find online. Most of the problems you can fix yourself at home.
Step 3. Clean the car until it is shiny
A clean car is much easier to sell, especially a high-value one. Also, sweeping the inside of the car and cleaning the windows doesn't cost anything, but it can drive up the price and make it easy to sell. Make sure to:
- Wipe all parts of the car with a clean cloth.
- Clean all parts with a vacuum cleaner, including the part under the car carpet.
- Wash and rinse the exterior, including the roof. For high-value cars, give a layer of wax to make it more shiny.
Step 4. Show buyers the obvious damage, and mention this in your ad
If a potential buyer knows about the problem, but still wants to buy, he can't use a car shortage as a bidding tool. However, if he finds an issue that you didn't list in your ad, he can get a bargaining chip. Being honest when selling seems like a bad strategy, but it will only invite serious buyers. While you can keep shoppers from being aware of some minor issues, people are generally willing to pay more for items sold by honest and trusted sellers.
Be sure to post lots of photos, especially of the parts of the car that have problems (such as torn seat foam). This will give you more confidence in selling it, as well as make potential buyers less suspicious of other damages
Step 5. Change the oil, radiator water and wiper water if necessary to increase the price
If these things have not been done by the previous seller, you can do it to clean the car and increase the selling price. Be sure to include these fixes in your ad because potential buyers will be happy to hear that they don't have to worry about the little things and are willing to pay a little more.
- Be sure to include the status of vehicle ownership. If the vehicle tax is running out, the prospective buyer must pay more to pay it off so that it can be used to lower the selling price.
- Be aware of specific local regulations, such as the smoke test in the state of California, United States. If you can pass this test before it's sold, you can get a higher selling price because potential buyers don't have to bother with it.
Method 3 of 3: Maximizing Profit
Step 1. Keep track of the prices of cars on the market, even if you are not interested in buying them at this time
For example, suppose you see a 1987 BMW car selling for $35 million at auction. Even though this price is too high to buy and resell, you can use this number as a benchmark to find a similar car at a lower price, then sell it for more than IDR 30 million.
- Pay attention to the location of car auctions and used car sales places to find out the selling prices of various types of cars.
- Visit car estimating websites regularly and read newspaper ads to find used cars, even if you're not interested in buying them. The more cars you see, the sharper your instinct for buying and selling cars.
Step 2. Find buyers and sellers who want to sell/buy a car quickly
If you and the person selling the car are both trying to make a profit, you should be able to "fight" to beat the offer. However, a salesperson looking to sell his car quickly is much easier to persuade to sell it at a bargain price.
- When buying a car, look for keywords such as “sell fast”, “need money”, or other indicators that indicate that someone wants to sell the car immediately, regardless of the selling price.
- When selling a car, pay attention to potential buyers who seem in a hurry or look happy, before even looking at the car being offered. Be sure to ask about the purpose of buying a car because this can be an indicator of his financial ability. Desperate people are usually willing to pay more.
Step 3. Be bold when making an offer
Buying and selling cars can not be done by the weak hearted. If you want to make a profit, you have to learn to negotiate. While everyone has a different strategy, the best strategy to use is to convince yourself before making an offer. Ask yourself two things – what is the ideal price you are willing to pay and what is the maximum price you can tolerate. Start bidding from the lowest price, then increase it little by little.
- Be honest with the seller, “I only want to buy/sell this car for IDR 12 million – can you agree on this figure?” If the seller isn't willing, just walk away.
- Always have cash in your pocket, and ask potential buyers to prepare the money. If you can pay on the spot, you can often get a lower price because the seller doesn't have to bother with re-meeting.
- Don't get too emotional – you buy a car to make a profit. If the seller won't give you the price you want, then walk away.
Step 4. Bring a friend, especially if he knows a lot about cars
Two heads are better than one. If you're bringing a friend with technical skills, you may need to pay to come along. Not everyone knows about cars, but that doesn't mean you can't make a profit. Your friend can help start the engine, monitor the condition of the car during road tests or engine condition checks, or find minor defects that you weren't aware of.
- In general, it's a good idea to ask someone to accompany you when meeting someone you know online just to be safe.
- You should always meet strangers in public.
Step 5. Feel free to leave a car in search of a better deal
If you're not too sure that the car is worth buying, leave your phone number and ask the seller to let you know when the price is discounted. Remember that the seller will sell the car to the highest bidder. So don't get emotional if he sells it to someone else when you're selling it at a high price. To get the best price, wait 2-3 days to confirm the seriousness of the seller, as well as the condition of the car. If the car hasn't been sold in a few days, you can ask for a discount of 10-25%.
Step 6. Trust your instincts when buying and selling cars
If a car feels "uncomfortable" or a proposed offer looks suspicious, it's best to just cancel your transaction. There are hundreds of other cars for sale, and your job is to make a profit, not take risks. If someone appears to be taking advantage of your indecision, it's best to trust your instincts and cancel the deal. There are many other opportunities out there.
