Side Hustle 101: Making Money Buying Junk Cars
Are you looking for a side hustle to earn extra cash? Junk car buying can be a profitable venture with a little knowledge and effort. Used cars and parts are in demand, and experts state that "prices are creeping up again," driving demand further. In other words, buying and selling junk cars can generate a substantial side income. Here's what you need to know.
How Do You Make Money Junk Car Buying?
There are two ways to make money buying junk cars: fix and flip them or part them out.
- Fix and flip. While you may have heard the phrase 'fix and flip' in relation to real estate, it applies to buying junk cars, too. Real estate investors often buy homes in need of repair, fix them, and then resell the home for a profit. You can do the same with used cars if you are handy at fixing them.
- Part them out. The easiest way to make money buying junk cars is by selling the parts. You can sell the parts via online auction sites or through social media postings. Depending on the car's popularity, you can earn a fair income from selling used parts.
Additionally, you can even sell the car as a whole without making any repairs. Some buyers will purchase your find as a 'parts car' for the project they are currently working on.
What Do You Look for in Junk Cars?
When buying a junk car, it is essential to consider your end goal. If you want to fix and flip the car, look for junk cars in need of mechanical repairs and a little TLC. In other words, things that you can easily and inexpensively fix on your own.
On the other hand, if you plan on parting it out, a bent frame or missing engine won't matter as much. In that case, you should look for a model in high demand or rare models with parts that can fetch top dollar.
Check the year, make, and model's popularity, which can determine the car's demand and the parts' value. The more popular the car model, the more likely the parts will sell for a higher price.
What Should You Never Do When Buying Junk Cars?
Never buy a junk car without a title. A title is proof that you own the car, and you cannot sell or register the vehicle without it. If someone tries to sell you a car without proof of ownership, 99 times out of 100, it is best to walk away.
Additionally, do not buy a car without inspecting it thoroughly. Buying a car without inspecting it is a high risk, and you may end up with a car that is not worth your money, especially if the car has severe problems that require expensive repairs.
What Are the Benefits of a Side Hustle Buying Junk Cars?
The benefits of junk car buying are numerous, including:
- Make money in your spare time
- No set schedule
- Hands-on, rewarding work, especially for car lovers
- Learn valuable skills that you can utilize in the future
- Do your part to save the environment by keeping cars out of the landfill
Junk car buying can be a lucrative side hustle if done right. Remember to check the car's condition, make, and model before purchasing it. Buying junk cars can turn a passion into money and a side hustle into a profitable venture.
Contact a company like Cash For Cars to learn more.