Quite a few people have turned entrepreneurs by setting up businesses buying and selling salvage cars. The entry barriers are quite low; not much money is required to kick off the business and it is also quite easy to locate the salvage cars once you know how. It helps to be passionate about cars and have sound mechanical knowledge so that you are able to spot vehicles that have potentially greater resale value.
Know Where to Buy Salvage Cars From
Considering the huge numbers of cars that are totaled by the insurance companies every year for various reasons, finding cars that can be reconstructed and sold can be quite easy. If you do not want the hassle of putting back damaged cars together, you can focus on salvaging parts that are in high demand and sell them for profit to individual customers or workshops, and the scrap metal to scrap yards and processors. Typically, you should look at car auctions both offline and online like http://www.idealautousa.com/ or the newspaper classifieds for buy/sell posts. Make it a point to buy from sources that are nearby, else you will end up spending quite a lot on transporting what essentially may just be scrap.
How to Spot Good Deals at Car Auctions
Many entrepreneurs in the car salvage business prefer car auctions to other modes for finding junked cars. Typically, cars may be auctioned by the insurance companies that have totaled them because they find that the cost of paying for the repairs will be more than the market value of the car. Junk cars may also be bought from wholesale dealers who have a contract with these insurance companies for the long-term. According to experts, some of the best deals are those cars that look extremely dirty and shabby. This is because nobody wants them; however, these cars may turn out to offer far better value than other models that see a lot of competitive bidding.
What to Look for When Chasing Leads from the Newspaper Classified or Websites
Buying cars from people who insert advertisements in the classifieds can be very profitable. Most of the cars are simply very old and not severely damaged, so the restoration work is not that extensive or expensive. Also, since you have the opportunity of meeting the sellers directly, you can find out the real reasons for the sale and use that to drive a better bargain. It can be a good ploy to just talk with the buyer, inspect the car and walk away leaving your number saying that you will need to think it over. If they call back in a few days, you know that they are not being able to sell it off, and they are really interested to make the deal quickly.
Finding cars for sale may be relatively easy, however, deciding on what they are worth and getting a deal that will allow you to make a profit can only be a result of experience. With time, your power of assessment, as well as bargaining, will improve considerably.
Author Bio: Dave Clarke is an entrepreneur who owns a very profitable business of buying and selling salvage cars and pre-owned cars. A car and restoration enthusiast, he regularly blogs about how individuals can buy cars that seem to be completely wrecked and restore them for driving or sell off the scrap metal for a profit. Some of his articles may be read at http://idealautousa.com/.