Is selling cars profitable?

The times we’re living in are quite uncertain with many people racking their brains trying to find other things to do, to add on to their income. If you’re one of these people, don’t worry since you’re not alone. The job marketno longer guarantees your financial security.

There are several ways in which people sell cars for profit. There’s your usual salesman at the car dealership, individual car owners who want to sell their cars or trade them for something else, the internet where basically anyone can buy and sell cars. However, there’s this new wave of ‘flipping’ cars that has received a lot of traction and many people many are excelling in it.

You don’t need rocket science to be able to sell cars. If you have the interest for cars, know the technicalities and are unyielding in what you want in your life, then you can do this.

We’ll look at just a few ways in which you can sell cars and which is likely to give more income.

Working at a dealership

Auto salespeople are the ones you will find at the car dealership who guide you and advice you on the car you want to buy. He/she also presents you with other options within the dealership in which you can buy from. They are mostly paid on commission and so the more they sell the more they gain.

Building a clientele as is with other businesses is crucial and especially so with salespeople. If you can maintain a good clientele and are consistent in your sales, then you can easily make profit. How you make money is dependent on how much you sell. If you can sell off a car at a higher amount than what is was originally selling for, then this could fall in your favor in bonuses and greater commissions.

So what are the pros and cons of working as a salesperson?


You determine how much you get to be paid since it’s commission based and is dependent on how many cars you sell as well as the profitability of each car. The more you sell, the more you make.

There’s no monotony in shifts since they alternate and the busier you are the faster time seems to run out plus the more enjoyable this occupation gets.

It’s interactive and you get to meet different people and gain new experiences.

It is rewarding when you get a good client who refers you to others thus building a clientele. This creates somewhat of a safety net since you get to sell more. Using the follow up system helps a lot in this.


If you don’t sell cars, then you don’t make money.

On slow days, being a salesperson can be a drag since you stand all day waiting for clients who might not even show up.

You could spend hours with clients who don’t end up buying and instead they leave you with empty promises that they’ll be back but they never do return.

Selling cars at the dealership can be stressful if you don’t have the knack for it.

Working as salesperson will require you to leave your current job if you have one and can be a risky move if you don’t have the skills to have you selling cars fast. If you don’t have a job and would to be a salesperson,then you need to make sure that your great interpersonal skills and make sure you understand the industry. If you get this right, you could earn $1000 or more on a car you sell.

Flipping cars

Flipping cars basically refers to the buying ofcars, usually at a cheap price, revamping the cars a bit and selling them off for a higher amount than the buying price, making a profit.

Buying low and selling high is a motto that true flippers live by. You cannot buy a car on a whim. Every decision has to be calculated when it comes to buying a car because this is not what pays you. How you sell it determines if you’ll gain or lose; you want to gain.

While buying a car, one needs to thoroughly asses the car and the damages on the car. You then need to consider the damages and how much it could you in repairs. If repairing the car can cause you more than the car itself or so much that even after selling the car you wouldn’t recoup the amount you spent, then don’t buy it.

Here are a few things to look out for before you buy a car

Oil status. You need to make sure that you check the oil level to make sure it’s neither too low nor too dry. Check as well to make sure the car doesn’t have major leaks by checking under the car. if there are some stains then this could be an indication of bad gaskets.

Engine. Listen to the engine running and listen for any knocking noise. Should there be any and you notice an increase in the sound upon acceleration then you should leave it out; don’t buy the car.

Transmission fluid. Check the transmission fluid to make sure it’s cherry red and that there aren’t any metal particles. If they’re present, it’s an indication of transmission problems so leave it out.

Radiator. Check the radiator by removing the cap and revving the engine. If you notice the water bubbling with air, then the car has a blown head socket. You want to avoid buying this kind of car.

There are a few more things that you should make sure you look into. However, if you’re not too well versed with the engine and how it’s supposed to run, you can always get a mechanic to do it for you.


Time and capital. Getting started on flipping cars doesn’t require a lot of time and/or capital. You can save up and start with one car and build yourself from there. This great example shows how a young man at 23 started flipping cars and now owns a dealership. Smart small and climb up the ladder side by side.

Internet. The internet has opened a worldwide market accessible to everyone. This information helps flippers identify prices of cars beforehand and it gives them better bargaining power. Some sites that are of help are eBay, Edmunds, Kelly BB, Classifieds among others.

Individuals should take advantage of the internet to get information pertaining to car pricing. How to compare prices, calculate how much a car would worth after damages and who’s selling near you and at how much.

Flexible. It is flexible since you can choose to work part-time or full-time and therefore you can still maintain your corporate job while making another income.

Great returns. Flipping cars, if you’re smart about it, could earn you a great income to the point of focusing on it full time.


Scams. The internet is filled with scammers and you need to be very careful if you intend to buy your car online. Don’t trust every Tom, Dick and Harry who flashes you the best deal placard.

Tip –Be aware of the economical temperatures. If the economy has been hit hard financially, say a banking crisis, people will mostly sell their cars at throw-away prices just to ensure that debt payments don’t swamp them. We’re not wishing that this should be the case but usually you can get pretty good deals for buying.

The minute you buy a car, it starts to depreciate the instant it hits the road. So you want to buy and sell quick. Inasmuch as you would get a good deal buying, selling is not a sure thing. Usually in such situations people aren’t thinking about buying cars. So again, think smart.

While you may want to start small, buying some dead bits for the flip, some people have found a niche in classic cars. This will require more research and know-how because going wrong with a classic could set you back financially.

Flipping cars can be a very lucrative business but only if you play your cards right.


Should I get insurance for the car I plan on selling?

Definitely. If you’ll have the car for a few weeks, then insure it. With danger always lurking in the corner you want to have your asset covered. Look out for cheap covers that will only cover the amount of time you intend to have the car for. No point in getting an annual insurance for a car you’ll have for a week or two.

Do I need a dealer’s license to buy and sell cars?

The Department of Motor Vehicles in the U.S. only allows for one to sell three cars a year. This is the case in several states so check if your state adheres to this rule.

However, there’s a way in which you can go around this. If you buy and sell your three cars within the year, you can ask a family member if you can sell in their name. usually you’ll need to give them a small percentage.

Note however, that people often want a bigger cut once they see the success you’re getting so don’t get comfortable. Once you’ve sold your six or so cars and are feeling more confident, then go ahead and get a license.

A license actually has its perks since you can now buy and sell as many cars are you want freely and legally.

There are other ways in which people do sell cars such as being a broker or partnering up with someone with the skill and knowledge of buying and selling and investing your money for a percentage cut. The latter is for people without the know-how of car buying or selling but have the resources. For any partnership, make sure you have a written agreement listing the T’s and C’s; be cautious.

So is selling cars profitable? Definitely if you know what you’re doing. Don’t wake up one morning and decide to quit your job and take out a loan to buy a used Jeep Wrangler in the middle of a national financial crisis. You’ll be crying and living in that beauty of a beast.

Hope this article has shed some light on how you can get some extra income or how you can start your auto business small and grow it. For more info on car flipping, here’s a link:


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