How can you make money at a car auction in the Philippines?
- Understand car regulations
- Start small work your way up
- Stick to popular vehicles
- Learn how to properly inspect cars
- Find reliable customers
Car flipping is a common practice done by car enthusiasts, particularly those that often attend a car auction in the Philippines, either as a hobby or as something that they actually do for a living. It may be surprising to many but people can actually make decent money and establish businesses out of flipping cars. Most of the time, though, people only do this on the side due to the instability and uncertainty of income.
In case you weren’t aware, flipping is a term that pertains to the act of buying a revenue-generating asset and immediately selling it for profit. The practice is done across the globe and one of its most prominent forms isn’t actually car flipping but real estate flipping. This specific practice involves buying houses at low prices and selling them high. It may also mean purchasing run-down estates – which would be extremely cheap – and repairing them before reselling for profit.
The definition remains the same for car flipping – people buy low and sell high or recondition and resell an old car. This makes car auctions, where one can buy cars for cheap, famous hunting grounds for car flippers. In order to better understand this practice, simply continue reading below to find out more!
Understand Car Regulations
The first thing you have to do if you want to make money through car auctions is to understand regulations regarding the buying and selling of cars in the Philippines. In some countries, cars must be properly registered under the initial seller and transferred to the next owner for the deal to push through.
Luckily, car laws in the Philippines are less strict and there is a practice where the details of the seller are left blank upon registration. Such documents are called ‘open deeds of sale’ and are beneficial to those that are in the car buy-and-sell business. These deeds keep them from spending additional and money to register a vehicle which they plan to sell after a short period under their names.
Start Small Work Your Way Up
During the early stages of your hobby or business, it’s best to start small in order to not go bankrupt. Not much money is required in flipping cars, anyway, so don’t bet all your funds on your first attempt.
Set a budget for and stick to it as best as you can. Additionally, avoid estimating the price that you can get for a certain vehicle. You should only do this if you’re a veteran in the world of automobiles. If you’re a newbie, always make it a habit to look up prices online prior to attending auctions.
Giving yourself a limit and arming yourself with adequate information is sure to lessen the pressure on your first few deals and allow you to make better decisions.
Stick to Popular Vehicles
Once at a car auction, you’re sure to find countless types and models of cars. There are sure to be vehicles that are popular among people in your area and some that are quite foreign to many. For the sake of your wallet, stick to the former and stay away from specialty cars, especially if you have no particular expertise.
Going for popular and common vehicles is sure to make car flipping easier for you. For one, you won’t have to search high and low for parts in case it needs replacements. Secondly, repairs are sure to be a lot cheaper since they’re common cars that don’t have extraordinary features. Lastly, you’re likely to attract more potential buyers and sell the vehicle at a faster rate.
Learn How to Properly Inspect Cars
There’s no way you can succeed if you can’t properly and carefully inspect a car. So read up on cars and their parts as much as you can. For a start, you could focus on a particular brand, type, and model, and learn everything there is to know about it.
A few of the important features and components you have to check are the car’s oil level and color, radiator, water temperature, water hoses and engine belts, sound of the engine, transmission, steering, brakes, and overall damage. One critical thing you have to remember is that not all cars can be flipped and it’s possible to end up with a car that’s beyond saving if you don’t know what you’re doing.
Find Reliable Customers
This should go without saying but you should only make deals with reliable and trustworthy customers. It’s a bit of tall order since there are people who seem like they can be trusted but are actually aiming to rob you blind.
In order to reduce the risk of coming in contact with these people, only advertise on dependable pages and sites or ask for buyer recommendations from people in your social circle. As you continue with car flipping, you should be able to develop a personal radar that detects scammers and bogus buyers.
In a nutshell, one of the best ways to make money at a car auction in the Philippines is through car flipping. We’d have been able to end this article by simply stating that, but that wouldn’t be fair to you, so we went and detailed the practice anyway. Hopefully, this helps those that are interested in earning extra profit or setting up a side business involving cars!