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This content is for informational purposes only and is not intended to provide financial advice.
A car can be a very valuable asset or an expensive liability. The biggest factor that determines whether your car is an asset or liability is how you sell it. If you sell your used vehicle to someone else, it’ll become their asset, and you’ll have successfully sold for the vehicle’s original value.
You, as the seller, will receive money that can be used towards another investment such as a new home or start-up business venture.
Sellers don’t attempt to maximize profit when they either trade-in or sell their vehicles for cash because they may focus on moving “fast.” They also often seem to disregard immediate resources that may allow them to sell their car at a margin: family and friends.
Making Used Cars into a Lucrative Side Hustle
What if we could sell our used car at a profit and even scale this operation to provide us with additional monthly income? Can we truly become a professional used car “trader” while creating “win-win” situations?
An example may best illustrate the answer to this:
Let’s say you have the rare opportunity to buy a car for dirt cheap. How much would you pay? Maybe $500?
That’s how much I paid for my first car. And throughout ownership, I spent roughly $6,000 on repairs over the course of 10 years. Yes, it was still running when I sold it.
Now imagine that you’re selling your used car at its Kelley Blue Book value (the price other people are paying for your car). You take standard photos and upload them to Craigslist or Autotrader with catchy headlines. You’ve even added a dash of humor to catch your viewer’s attention. But if they aren’t contacting you within 24 hours, they never will.
In this scenario, I’ve got a better idea.
Do you know that guy from high school with the dirty old Honda Civic? He’s still driving it around and paying for his dirt cheap car insurance every month. What if you offered to take over his car payments in exchange for a bump in your paycheck every month? Now imagine there are 20 of these guys you could contact. Suddenly, selling your used car isn’t so difficult anymore! And all you need is “word of mouth marketing,” or a “sales strategy based on personal recommendations,” according to Berina Karic, marketing manager at Top Influencer Marketing Agency.
Selling Your Used Car – Real Life Example
This is exactly what my friend did when he sold his last two cars. On both occasions, he made an extra $100-$200 per month without the hassle of dealing with Craigslist or dealerships. And guess where he found most of these people? Through friends and family!
But how does this work?
He simply contacts his friends and family one by one, with the following pitch: “Hey Bob! I’m about to sell my car. I have great car insurance and managed to keep it in mint condition with regular maintenance and upgrades. If you know anyone looking for a reliable car like mine, would you mind passing along my number?”
After getting their numbers (he put these people together over the years), he calls each client or friend individually to pitch them on buying his used car personally. These conversations usually follow the same format:
“Hi, John! So remember when we were in college, and you needed me to drive you around all of the time because your crappy old Buick broke down again? I’ve got some good news for you. I just bought a new car, and I’m selling my old one, so our roads will be safe again! Do you know anyone looking for a good deal on a reliable car?”
If the friend or family member responds positively to his pitch, he continues by going over what kind of car they have in mind. If not, he moves on to the next person on his list. He never wastes time pitching someone who already owns a Mercedes Benz.
But wait… how did this guy get a list of people interested in buying his used car? Isn’t he supposed to contact random strangers like every other salesperson always has?
This is where it gets interesting. You see, when your friend or family member contacts you about buying their car, they are giving you an incredibly valuable gift. They are handing over the contact information of another family member or friend who needs your help.
Can you scale using this approach? Absolutely! I wouldn’t be surprised if you could come up with 30-50 people looking to buy your used car.
The main reasons this approach works so well are that the person selling their car is someone you already know and trust, they have offered a valuable service, and it’s easy for fellow family members or friends to find common ground between themselves (new cars are expensive).
This approach also takes away all of the costs associated with selling your used car on your own. You aren’t paying for ads on Craigslist or metered exposure at dealerships. You don’t have to deal with multiple buyers trying to lowball you and don’t need negotiation skills since everyone wants to help their own family members.
For example, below is a conversation I had with a family friend a few weeks ago:
Family Friend: “Hey, I was looking to buy a used car for my son. Do you know anybody selling something reliable?”
Me: “I’m actually trying to sell my car. What kind of car does your son need?”
Family Friend: “Oh, he just needs something cheap that gets good gas mileage.”
Me: “Great! What’s his budget? I have a 2014 Ford with low mileage, and it meets all of your requirements.”
Family Friend: “Ok great! What are you asking for it?”
And just like that, he purchased my used car without any hassle or negotiations. And did I mention this transaction took place over the phone?
The only downside of this approach is that it takes time to pitch each family member or friend personally, but you can scale this method infinitely by using the phone instead of email. It’s not everyone’s cup of tea, but I know there are people out there who are willing to take on extra responsibility for a bump in their paycheck every month.
An additional tip is to try to sell your used car at the beginning of summer. This is when everyone spends the most money, and cars tend to wear down quicker due to increased usage. It is also the time when most of us need a car for our upcoming trip or vacation.
Profiting Off Selling Your Used Car
Selling a car and making a profit while helping others by giving them a valuable service is the ultimate Win-Win. It takes a few hours of your time to get in touch with everyone but will have exponential benefits.
So, the next time you hear from someone you have previously sold to, why not ask if they “know anyone else looking for a good deal on a reliable car?” You can be sure that they will either say “Yes!” or give out at least one phone number. This is all the info you need to sell multiple used cars.
Although buying used cars to sell is much more work than just selling a car once to a dealer, the extra income is very worth it, in my opinion (and my friend’s too). You may earn an additional several thousand dollars in profit per month and can even increase this margin over time.
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