Let’s talk about negotiating secrets when flipping cars for profit.
If you want to learn how to buy and sell cars for profit, you need to know how to negotiate. Same thing with real estate and basically anything in life.
You don’t get what you asked for. You get what you negotiate.
I’ve been getting some questions about the negotiation tactic like this one, “Tony, if somebody came to look at my car and really liked it but they don’t have the money right now and want me to hold it for them for like a week so they can get the money, what do I do in the meantime?”
What you do in the meantime is keep selling. You never want to count on somebody unless they give you a deposit.
Here’s how I recommend getting deposits. What I do is I create a bill of sale with a non-refundable deposit. Now, listen to this. This is how you can make extra money. I’ve made extra money so many times by doing this.
For example, the car you sell is for five thousand dollars. You have to tell the guy to give you ten percent down payment and you’ll hold the car for him. So, take five hundred dollars as deposit.
Then, agree on a specific time. If he says he needs seven days, tell him you’ll give him ten days to come up with the money. And, tell him the deposit is non-refundable.
Then, create a contract with the VIN number, the license plate number and the total value of the car. Don’t forget to specifically state non-refundable deposit of five hundred dollars.
Make two copies of the contract and sign it. Then, give him a copy and keep one. So, you both have copies of the contract with your signatures.
During the time you’re holding the car for him, you still take calls for the car like you’re selling it. Don’t stop answering phone calls. Keep renewing your ads on Craigslist or wherever you’re advertising.
Don’t stop collecting your leads because you never know what’s going to happen. Either the guy is going to show up with the rest of the money to pay you, or it’s not going to happen.
So, you basically keep the five hundred dollar deposit. Plus, you still have interested people you can call back to tell them that the car is still available.
When you have people calling you and you have a car on hold, just say that the car is pretty much sold but the guy just needs a couple of days to come up with the money and gave you a deposit. But, if it doesn’t work out, tell them you’ll call back.
You take their information down so if the deal doesn’t go through, you have some leads to call back. Hopefully, you have about five or six people waiting and you get to close the deal with one of them. Plus, you have an extra five hundred dollars.
I’ve done this many times. A couple of years ago, I’ve sold a sailboat. I think it was early 2012 before I went to Mexico.
I was selling a 29 foot boat for like $13,500. It might have been a Cal 29 sailboat. Some guy gave me five thousand dollars down payment. He wanted two months to come up with the rest of the money.
At that point, I was paying like $150 for the dock fee but I told him not to worry about it and that I’ll take care of it.
So, I gave him a 2-month contract. He couldn’t come up with the rest of the money and I kept the deposit. That’s business. I turned down a lot of interested prospects for him.
So, I ended up selling it again and I sold it for $13,000. I got a total of $18,000 for the boat. I only paid $7,500 when I initially bought it and I didn’t do much to it.
That just gives you an example of how powerful a non-refundable deposit is and how powerful collecting leads is, even though the sale “sort of” went through.
Even though you got the deposit and you pretty much sold it, don’t ignore the leads coming in because it might not go through.
I hope you enjoyed this little negotiation tactic. Take your non-refundable deposit. Figure out what the agreeable time is between you and the buyer.
If he says he needs a week, give him ten days. If he says he just needs five days, then give him a week. Then, create the contract with all the specifics, particularly indicate the non-refundable deposit.
Explain to him that you’re requiring a non-refundable deposit because you’ll be turning down buyers because you’re holding the car for him and that you’re losing sales if he does not follow through with the deal.
This works like a charm. It’s Tony from F1 AutoCashFormula 2.0 – How To Buy And Sell Your Cars. If you want to learn more tips on how to flip cars for profit in the private party market as well as auctions, check out the F1 AutoCashFormula 2.0 VIP course.
You’ll get a lot of information from the program. Don’t forget to grab your FREE Manual, copy my strategies and earn a few thousand bucks in flipping cars even if you’re in college, or maybe you’re a senior citizen looking for some extra income.
If you know how to negotiate, know how to get deals, you know how to wheel and deal, you can make a lot of side profit to add to what you’re doing right now.
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Have a great day! I’ll see you soon! Bye!
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