Where to Find Cars (With & Without Dealer’s License)
Written by Anthony Baucum - Pro Dealer Secrets
Ah, it’s the age old question that men have been pondering since the caveman days.
Where is the best place to find cars to flip for profit?

It’s a hard question to answer because it depends largely on one thing, whether or not you have a used dealer’s license.

If you do, then the best place is dealer auctions and only from certain sellers (more on that in a few).

If you don’t have a dealer’s license, it can be tough and you’ll spend a LOT of time digging for that one nugget. They’re out there, just harder to find and requires more persistence. There are public auctions that will have good deals also such as Copart. TRA, and local public auctions if your area has them.

If you do have a dealer’s license it’s as easy as signing up for some local dealer’s auctions and going throughout the week and picking out the deals you want to flip.

As a dealer, I never buy from individuals anymore because it’s time consuming and there are so few good deals because people want to sell their cars for what they think they’re worth and more than 90% of people have a higher value of their car than what it’s really worth.

Good deals can be found, you have to be good at finding and negotiating those deals, more on that later in the email.

BUYING AT DEALERS’ AUCTIONS

As far as dealer’s auctions, the absolute best deals are local new car trade-ins,these are older cars that have been traded in for newer cars. These dealers want nothing to do with them, they’re too old, they have too many miles, they’re junk, pieces of crap and they’ll ruin the dealer’s reputation if they sell them. That’s how they see it anyway.

P.S. NEVER, EVER Buy from other used dealers. 99% of those are their problem cars.
Don’t learn that lesson the hard way. If they can’t sell it, why do you think you can?
New car dealers see older cars as old and worthless, you and I see opportunity and value to our customers.Our customers have a low budget and want the best car possible for that budget.

New dealers see problems, we see profit in old cars.

Let’s use that civic example again from Part 1. The exact same civic that Bob bought (he made $800 on it).

Why was it at auction in the first place and what did they see?
This 2001 Civic was traded in at Johnson Honda when the customer bought a brand new 2017 Honda Accord. This was a good reliable, daily car the owner just has a bigger family now and needs more room. The dealer informs the customer they can only give them $1000 in trade-in value due to the age and high mileage (180k miles).

The car sits on the Honda dealer’s lot for a few weeks then is sent to a local dealer auction where Bob sees it for sale.

He looks it over, starts it and drives it around, makes sure everything works on it. Decent tires, no major leaks, no engine noises and it shifts great. Has that soda stain in the back but overall a decent car.

In any market, this car is easily worth $1500 because just about any decent looking, reliable car is always worth at least $1500. He also believes he can easily get 2000 out of it within a week based on his research.
Bob is minimizing his risk.

He knows what the absolute worst case scenario is, $1500 for it, and the best case scenario is that he sells it for $2000. So he buys it for $1200 and sells it for $2000 2 days later. There was no way he could lose money in this scenario.

BUYING FROM INDIVIDUALS (NO DEALER LICENSE)

This is the hard way, but it’s also how a lot of you have to start out until you can get a dealer license later on.

When I started back in 2010, Craigslist was the #1 place for flipping cars.
Now there’s a lot more sites and I see more good deals on these other sites than Craigslist anymore.

Sites like Facebook marketplace, Facebook groups, OfferUp, and LetGo are a few. I also buy some on EBay but that’s a big risk if you don’t know what you’re doing and buying sight unseen.
So have a budget in mind, you’re not going to want to spend more than $1500 on a flip car and not more than $100 in minor fixes, cleaning,etc. That’s a strict budget of $1600 or lower (lower ideally).

Look for some of the following when browsing ads:
-Ads with bad pictures or only 1 or 2 pics
-Ads that are missing phone numbers on craigslist, most people hate emailing sellers
-People that need money quickly
-People who seem to think their car is old and not worth hardly anything
-Cars that are really dirty, missing hubcaps, bumper, etc that can be cleaned up easily
-Cars with seemingly big problems that are easy fixes.

If you’re unfamiliar with car prices, I recommend spending at least a week constantly scanning cars for sale from $1000-$3000 to see what’s available in your market.

Imagine you only have $2000 or $3000 cash to buy the best looking, most reliable car possible for you and your family. What do you have to choose from?

As a seller, you must the best car available for that customer and it will sell itself.
If you’re unfamiliar with cars mechanically, find a local mechanic to do pre-sale inspections for you while you learn what to look for. Some shops do it free, some are cheap like $50.

Learn to Avoid Craigslist Scams - Look for:
1) Weird prices
-Uneven prices are almost always scams. Like 1,531 or $2,054. If it doesn’t end in a zero ($1,500, $2,950, $3000, etc)
2) Weird area code
-You’re probably familiar with your local area codes, if the number in the ad has a weird one it could be a scam
3) No phone number with email address
-This one is obvious, if the ad says to email and the emall is spelled out in the ad it’s probably a scam.
4) Too Good to Be True and Stock Pics

-If it looks too good to be true it probably is. If there’s only one or 2 stock looking pics and very vague or broken description, it’s probably a scam.

NEVER, EVER PAY ANY WAY OTHER THAN CASH. NEVER, NEVER, NEVER (NEVER)

No paypal. No gift cards, no cashier’s checks, no bitcoin blah blah blah.
Don’t do, you’ve been warned.

Obviously I can’t get to everything I’d like in this email but there’s some great shit to get you started

Anthony, ProDealerSecrets.com

Anthony Baucum

Anthony is a licensed dealer from Tulsa, Oklahoma who went bankrupt with his first dealership in 2016 and started a successful dealership averaging 50 cars sold per month as a result of the lessons learned.
Anthony used his experience in digital marketing and finance degree to create a new, unique system of buying and selling cars that isn't taught anywhere in the world.
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