How to Buy and Sell Used Cars for Fun and Profit
Section 9
Closing the Deal.
Agree on a price. If your homework has been done you will know your lowest price. One of the reasons I picked this price range of used cars is that they are usually cash deals.
If he didn't bring the cash you can take a good faith deposit and hold the car 24 hours for him. I don't take personal checks.
You must fill out a bill of sale. Make sure the "bill of sale" indicates that the sale is "As Is". People should understand that when they buy a car from a private party there is no warrantee.
I have been buying cars from private individuals since I was 16 and have never been burned.
Most people are honest. There is no better way to determine how a car has been treated than to meet the owner. That’s something you can't do when you buy from a used car dealer. I can't guarantee you will have as good of luck as me. But using this system will substantially reduce your risk.
It is a good idea to keep a permanent file on each transaction. Make copies of any important papers and keep them there.
After you have completed some transactions it's time to step back and do a little analyzes. Keep track of your time invested. You want to determine your hourly rate. If it took you 10 hours to find, prepare, and resell a car, and you made $1000.00, then you are making 100 dollars per hour!
Zoning laws
In some cities you can get a ticket for parking your car near a busy street with a for sale sign on it. There are also laws that forbid you from running a retail business from your personal residence. Selling a couple of cars a month shouldn't cause any problems though.
Laws and regulation differ a lot from area to area. Make sure you are familiar with your local laws.
Business License
Most cities will require that you have a business license to operate a used car business. But like I said before, doing a car or two a month shouldn't be a problem.
Transferring the Title
The transfer of title is done with a document called a "bill of sale". A bill of sale transfers ownership of property from the seller to the buyer. It is basically an agreement for the sale of goods. It acts as a sales receipt.
They can be made online, if you have Internet access. You can go to www.billofsale.com or www.lawdepot.com just to name a couple.
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