This is an interactive training. I hope you enjoy the show! Today’s show is all about Figuring Out What To Pay For A Used Car When Flipping Cars For Profit.
This is a common question, but we’re going to get back to that in a while as we wait for some more people to jump in. I recognize a couple of names here Aaron … Mr. Mitchell … Ignacio
I’m in Japan and this is the studio room that I’m staying in. It’s a little messy because I have kids and we just got here last night.
It’s Thursday at 10am here in Japan. I’m an hour ahead of those in the Philippines and for those in the States, we have about a 14-hour difference.
(Sorry for the stream issues again!)
I’ll show you what the outside looks like. It’s kind of a gloomy day. That building across is my place. There’s a college right next door to me. It’s like a Fashion Institute School. Pretty cool, right?
Let me check if I can share screens with you guys. It looks like I have to upgrade Wirecast for me to share my screen. Forget it, I’m not going to do that while we’re live.
Question: Here in Houston Texas, the prices of cars I found on Craigslist are as follows: Honda Accord LX.2003 = $2,900, $3,600, $4,500, $2,995, $3,999, $$4,499, $3,100, $2,600, $3,000 respectively. What kind of offer will I make to the sellers? How do you figure out what the right price is? The Kelley Blue Book Trade-In Good Value for the above car and year is: $2,100. Please I need you to help point me in the right direction as regards what to offer for the cars I found on Craigslist.
Blue Book just gives you an overall price rance. It is not set in stone. The reason why I like to train you guys to look at the blue book is because that’s where your buyers are looking.
You need to know what your buyers are looking and comparing you with. Blue book doesn’t consider vehicle-specific demand in any geo location.
Blue Book doesn’t know that Toyota trucks in Hawaii are very, very popular. They don’t take that into consideration.
A 2000 Toyota Tacoma may be priced at $4000 in the Blue Book, but if you look on Craigslist or in the papers, you won’t find them less than $6500. It’s not even close to the Blue Book.
That’s because of the demand. The market decides what a vehicle is worth. Just because a house is worth $550,000, it doesn’t mean it’s worth that amount, it’s worth whatever the market decides to pay.
Houses and cars are the same thing. Just because a Tacoma is listed as $4000, it doesn’t mean it’s worth that amount. The market will determine the market of that vehicle.
Blue book is good to know the numbers, for your initial research to see where everything stands. It’s also where most of the people look and get their values.
A lot of times you’ll scoop up deals from people that don’t know anything about cars off Craigslist because they’re looking at Blue Book.
It’s like an average 55-year computer technician who does not know anything about cars. He’s listing his truck for sale because he wants to make a $1000 more than what dealers are going to give him for trade-in.
He’s like, “Dealer’s going to give me $3500” Which they know they could sell for $6500 or $7000. “If I sell it myself and Blue Book is saying $4500 and sell it for $4000, I make an extra thousand.”
This is how the majority of people think. Those are the deals that you’re actually going to be scooping off from Craigslist. This is how you’re going to be getting more deals.
Asian Cars like Honda Accord, Toyotas, Mitsubishi, hold their value a lot longer than American cars. People love Hondas. They are known for dependability and reliability, affordable parts, easy to work on.
From the market, they are always going to be higher than Blue Book in most areas. You may see a Blue Book value at $2200 but people are asking for $2900 to $4500. There are many reasons to determine a final value of a product.
Condition of the car is one and mileage is the other one. You can have the same 2003 Honda Accord in bad condition. It needs body work and paint, it needs interior cleaning, it needs a tune-up, which is why it’s going for $2200.
Then, you have your other 2003 Honda Accord with lower mileage. Maybe it doesn’t need that much body work, maybe there are scratches here and there. Not a big deal. It’s in better condition, which is why they’re asking for $4500. It may have 30,000 or 50,000 miles less.
Each car has its own value. You can’t just look online. You actually have to go and look at the car. Call the person up and find out the car’s condition. Is it beat up or not? Condition and mileage. Always take these into consideration.
Also, you want to use the Craigslist, the distributing channel to research the market you’re in. Spend the week on it, just looking at vehicle prices.
If you have a $1000 budget range that you’re starting to buy and sell cars with, start looking at cars that are $6500 and lower and research what the car prices are going for.
The more you look at deals and analyze prices and data, the more you’re going to learn. You might start looking at all 2000 Honda Accord at $2500 to $3000 or maybe less. You have to be searching in your area.
(Sorry about the annoying Wirecast logo!)
If you get an idea of the prices in your area and you see one listed at unusually low value, maybe at $1400, you click on it immediately. Maybe this guy doesn’t know what he has.
Then, you immediately call him up and schedule an appointment. First to look at it, first to bring cash and snatch the deal. That’s how you make money in the game of flipping cars for profit.
I tell you what the best times are within the VIP program. If you are a VIP member, you get the advantage. I share all those strategies within the F1 AutoCashFormula 2.0 – How To Buy And Sell Your Cars VIP Program.
Question: How do I know what to pay?
What to pay is based on condition, mileage of the car, overall inspection and negotiating a killer deal. You know that this 2003 Honda in this condition is selling for above $4500.
If you can get it below that like $3200 or $3300, you know you’ll get $1000 or $1200 or even more.
You can do what my father always did. He always sat in about five to ten cars. He always asks top dollar because he always wasn’t in a rush to sell. He would sell less, but he would get a higher price.
It depends on your business model. You could sell less but at a higher price like my dad. My model was make a good amount of money, but get to the next deal. My business strategy was volume.
I would literally sell three to four cars before my dad sold one. I most probably made more money than him, but he had to do less work because I was constantly finding deals. The more you put in, the more you’re going to get out.
My dad was in early 60s to late 70s when he was sitting around with cars like that, but he constantly had a flow of cars coming in through auctions and people he knew through years in the industry.
I will have more updated information, especially in finding deals within the VIP area. We have so many good reviews with VIPs.
I will be adding more into the VIP area. I will go to your local Craigslist and help you do the market research in your area. For our F1 AutoCashFormula VIPs, you get three video critiques like this.
There’s a correct formula to structuring an ad that hooks people in and gets people to call you. This is a big part of selling your cars quickly. For the VIPs, send me your personal critiques for you on video. Just send me your link. I’ll check it out and show you exactly what’s going on.
It will be advantageous for you to jump in every week, to help you get more ideas to take you to the next level.
I’ve added two more series in the LearnAutoBodyAndPaint Course. I’ll be working on the BMW series once I get back to Texas in a couple of weeks.
I’m also going to be creating an in-depth section on how to start off with your own auto body and paint business out of your own garage.
I hope you guys are liking all of this. Let’s go to regular Q&A. I hope to see you guys next week. We do this How To Buy And Sell Your Cars live stream every Wednesday at around 9pm-10pm Eastern.
I have another website that teaches you how to basically build your own online business like how I do here. It’s a pretty cool subject as well.
Question: How do I get my ad reviewed?
Send me an email at [email protected]. My girls will forward it to me. We literally receive hundreds of email every single day. I can’t go over everything. I have my girls review and send me those that I have to personally reply to.
You can also open a support ticket. Just open the Contact tab on any of my websites and just indicate Ad Critique. Put in all of the information. The more information you put in, the more I can give back to you.
Question: Can you touch base on importing cars from the Canada to the USA because of the weak dollar?
Basically, you can just buy cars in Canada and import them. You can drive them right through the border if you want to. You can have them deliver through uShip. There’s no big deal.
I just bought a mini-truck here in Osaka, Japan off eBay. Another good place to fish is eBay, especially for collectable cars and unusual cars.
I got my ’97 M Edition, original owner for $4000 off eBay. Classic. I also got a ’89 or ’90 Japanese mini-truck off eBay. I’ll have that the first week of August. It will be shipped over by a freight vessel. I’m going to do a live video of that as well.
Question: What are the brands or cars to avoid?
The question you should be asking is, what cars do you want to stick with? I say, Asian cars. Asian cars are very, very good, unless you like a specific brand, make and model which you know so much about it, then stick with that car you are very familiar with.
To me, I love BMW. I bought and sold a lot of BMWs early on. Now, I do everything. I have extra BMW parts, I know how the engine worked and I know how the suspension worked.
The process of importing is very simple. You get a bill of landing from the shipper. It’s mostly the shipper that does the work, the person you’re buying it from.
They prepare all the documents and tell you how much taxes you got to pay and how much the importing fees are. It’s super easy. It’s not a big deal.
I sold a classic to guy in Russia off eBay. I had a ’60 Chevy Bel Air. He didn’t even look at the car. That’s ridiculous. I bought it like $8000 and sold it for about $1200 or $1300, without doing anything to the car.
Question: Is eBay sold listings a good reference?
Yes, it is. eBay sold listings is a good reference. I wouldn’t base all of your research of eBay because eBay is international. Demand for something may be way off the charts. Like I said, eBay is good for collectables and unusual cars.
Question: How much can I ask for my 2000 Chevy Tahoe clean?
Go to your Blue Book and see what they’re going for. How many miles does it have, take that into consideration. Go on Craigslist and see what they’re going for and adjust accordingly.
You got to do the market research. It depends on how clean, so I can’t really tell you right off the bat.
Question: What’s the ad in YouTube site link that you do?
I don’t understand that question.
Question: What was your pickup truck again?
I’m going to keep that a secret. I don’t want to give it away. It’s being delivered to Galveston, Texas on August 5th or 6th.
I’m going to pick it up and bring it to North DFW. I’m going to have my nephew go with me and we’ll record the process. We’re going to video the whole thing and make a mini-documentary. It’s going to be cool.
That thing I know I can sell for profit, but it’s such a cute little truck. I think I’m just going to re-do. It’s in excellent condition. It only has 10.000 km, which is like 6000 miles. It’s a 1989 mini-truck. I got it for a deal at $2000 or $2500 for it and freight is about $1500.
Question: I’m having a hard time selling my 2000 miles Maserati. Where should I focus on selling it?
I think Craigslist is a good way. You can do a physical ad, I think that’s the reason why you’re having a hard time selling it. There’s a way to structure your ad to get people interested.
When you’re selling a high end car like that, what are you asking? $7500? When you get into that higher price range, it’s going to take longer to sell your car.
Once you get into the super car, Lamborghini or Ferrari, you’ll probably sell it a little quicker, but you need to get your price right.
You’re selling to people who have money. They really have money to spend. Most chances are, they’re not really worried about financing, although a lot of people finance.
Question: From your experience, is it hard to sell convertibles?
No, absolutely not! You’ll have people looking for convertibles. Buy and sell popular convertibles. Don’t sell a Chrysler Sebring. I don’t want a Chrysler Sebring.
Again, it’s not what you want, it’s what other people wants. You’ll get more people interested in a Ford Mustang convertible than a Sebring. People love Mazda Miatas.
Automatics and manuals are another one. People are like, “Should I buy and sell only automatic cars, or manual cars?”
If I had a sports car, it’s always manual. If people are buying sports cars or convertibles, 80% will want a 5-6 speed. A lot of people are not really interested in automatic sports cars unless you’re getting into the sedan luxury vehicles. People like automatic luxury sedan vehicles.
Question: How do you low ball without losing your dignity?
You low ball tastefully. There’s a way to low ball without being a total jerk. We cover that within the VIP members area. We cover everything from A to Z. We’ve got some VIP members right here now.
If you want to learn more about flipping cars for profit, I’m giving away a FREE Manual, just go to the F1 AutoCashFormula 2.0- How To Buy And Sell Your Cars website.
Question: What do you do if you get a lemon?
If I get a lemon, I try to get rid of it ASAP. I try to fix it sometimes, but the whole thing is to avoid getting a lemon.
That’s why in the F1 AutoCashFormula 2.0 Program, I have the inspection series. I show you how to inspect a car and give you the basic tools that you need to weed out lemons from a good car.
We get in-depth in the program. We go over car inspection together. The whole idea is to avoid gettina a lemon.
You sometimes get a lemon, especially if you’re starting out. I hardly get lemons now. I can’t remember the last time I got one.
So, try to fix the issue ASAP and get rid of it. Sometimes, you may break even or you may lose a hundred bucks or two, then move on to the next deal.
Don’t let that discourage you. I bet that it’s the best investment that you made on yourself. You take one little strategy or idea that will help you sell your car quicker. It’s a skill that you’ll have for life. It’s a no-brainer investment.
I’m in the middle of publishing my first real book. We’re guaranteed to get it on Amazon as a number one best-seller. I want to do a New York Times Bestseller, but I don’t know if my first book is actually going to do that.
I’m new to the game. It’s costing me $10,000 to get started and get my first book published. I’m going back and forth with editors. I have a small team and doing weekly interviews with a professional interviewer.
This is how much I invest in myself. I am speaking at the Business Faculty in Harvard in the next three weeks on a particular topic. Pretty cool, huh?
I was at a seminar a month ago and I was invited two weeks ago and it blew me away. Wish me luck on that, it’s crazy!
Question: A ’97 Miata at 70,000. Is that a deal?
That’s a deal. Get it. If they’re asking for $3000, you can get it cheaper. It depends on the condition though, but that’s a low mileage for a Miata. I will be all over that.
I would offer $2350 to $2400 because they’re going to come back and offer a little higher. You snatch it for $2500 to $2600.
If they’re selling it at $3300, you can probably get that at $2800 cash. You go there with cash and put on a good little show. Everything’s a show.
How you present yourself, how you walk around the car and all that. We go over all of this stuff within the F1 AutoCashFormula 2.0 – How To Buy And Sell Your Cars Program.
If you could snatch that cheap and you do a good ad, you can definitely make money on it. I don’t think it’s hard to find people who want Miatas. It’s just not advertised correctly.
I’m going to head out. It’s 42 minutes. I hope you’ve enjoyed this show. We did our main topic, talking about what to pay for used cars when buying and selling cars. We did some Q&A also.
I will see you on next week, Wednesday at around 9pm Eastern. Please don’t forget to Like, Share and Subscribe to my videos.
I will be in Japan for the next three weeks and head to Boston for the Harvard speaking engagement. Maybe I’ll do some regular video there and upload and show you what Harvard looks like.
I’ve never been to Harvard. I am a college dropout, yet I got invited to speak in Harvard. I’m a little nervous but I’m blown away.
I have around 20 people in the audience. We’ll see how that goes. I’m buying a nice suit here within the next couple of days and get ready.
After that, I go back to Texas to pick up my car that I bought in Japan and do a couple of things then fly back to Japan here to pick up my family. I’m pretty busy.
If you have not invested yet, check out the F1 AutoCashFormula 2.0 VIP Course. For the price point, it will be the best investment that you’re going to make to take yourself to the next level.
It’s Tony of F1 AutoCashFormula in Japan (and in my messy house! LOL!). Thanks for getting on.
Have a good day! Cheers!
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