According to a Used Car Industry Report by Automotive News, used-vehicle sales peaked at $40,420,462 in 2018 and, it will remain stable in 2019. The industry grew at least by 3.1 percent last year from 2017’s $39.2 million.
Based on these values alone, you know that the market is clearly lucrative. Used cars, however, don’t mean these vehicles are subpar or broken. In some cases, second-hand vehicles are a better investment than new ones because of what’s under the hood; though the former is significantly cheaper in value.
You can profit off of your used car sitting at home. With such a lucrative market, you can easily turn this into a business.
How Used Cars Bring You Profit
The right used cars may look a bit worn on the outside, but inside they’ll still get their owners safely to their destination. A few repairs and flips not only improve the exterior, but they may easily raise an automobile’s value in the market.
Reselling your used car
The most obvious way you can profit off of a used car is to resell it. Although it’s true that a vehicle’s value depreciates within the next three years of its purchase, a used car can’t depreciate any lower. You can sell it at the median price of other pre-owned vehicles in the market.
But if you made repairs and modifications on the model, it may be worth more. Your profit depends on the model and on your pricing strategy. There are tools you can use online to look up prices for modified used cars and its allowable markup percentage.
Large-scale used car dealers usually buy vehicles at its auction value. If you’re buying from a used car lot, try getting it at least $500 to $1000 lower than its auction price. You can negotiate with salesmen, so you know you’re getting the most out of your money.
Alternatively, you may determine the demand on your used car to come up with a price. How many people are looking for that kind of vehicle in your area? If you notice a high demand for used cars, you can maintain your price at auction value. If not, you can lower it in increments to make a sale.
Starting a used car franchise
If you’re looking for big business, try a used vehicle franchise. Used car business opportunities allow you to start a business without needing to begin from scratch. All you need to do is choose the right franchise, one that has more market share than the others.
Rent your car
An unconventional and temporary way you can profit off of your car is by renting it out to people in your neighborhood. If you don’t use your vehicle as much, you can rent it out and charge by the hour. This is a simple way to turn in profit without needing to let go of your car.
You can list your car for rent online or post about it locally by putting up signs in your neighborhood. You can control the arrangement of when people can borrow your ride. You can lend it over to them on the weekend, weekdays, or on special occasions.
The used car market has lucrative opportunities, with steady, modest growth in the industry. You can maximize these opportunities in a small way (selling your used vehicle) or in a big way (buying a franchise). Either way, you’re likely to profit with the right approach.