Everyone knows that cars are almost always a depreciating asset. You pay $20,000 for it and drive off the lot and it is worth $18,000. A year later it’s worth $14,500, and a few years later it’s worth $3500. This is the common story for most cars. And with the American obsession to spend so much of our income on our transportation, I am convinced that cars greatly affect our financial freedom.
So with so many people losing money on their car purchases, how could you possible make money with cars?
A video that discussed whether or not you should buy a new car or a used car that I published a while back just received this comment…
“Exactly one year ago I had a $375 truck payment on a $13,500 loan and the truck was only worth about $11k. I put the truck up for sale and luckly sold it for $11,500, with the difference coming out of my pocket. I bought a 95 4runner for 2k, drove it for a couple of months and sold it for $3200. I used that money to buy another 4runner for $1,500. Again drove it a couple of months, sold it for 3,000. I did this a couple more times with various vehicles.
Yesterday I paid cash for a 2004 GMC Envoy fully loaded. It books for about 13k and I have about $3k of my money that wasnt made off of buying and selling vehicles. It can and will work. It takes many hours of searching on craigslist and such and a little bargaining with people but I now have almost $400 a month going to pay off student loans.” -Cameron
I have to say that I never really thought about doing this, but if you think about it, it is just what used car dealers do every day. With the “gotta-have-it-now” society we live in, you can bet that there are a lot of people who are willing to sell their car below the KBB value in order to sell it quickly.
So in Cameron’s case, it looks like he spent a lot of time looking for great deals (I am sure he never paid too much for a car!) and used patience to make a profit. I am going to see if I can get Cameron back to comment with a little more detail on how he did it…
Anyone else ever successfully buy and sell cars for a profit?
- How cars affect your financial freedom
- Drive your new car for 2 years and sell it for a profit?
- Money Mistake #1 - Paying too much for a car
- How do you pay off a car?
- Should you buy a used car or new car?
- Cash for Clunker's Results: U.S. cars traded for Asian cars
- Making sacrifices to get out of debt (part 6)
- Save money on car depreciation
Bob enjoys dark chocolate, paying off debt, giving, Foosball, loose-leaf tea, helping people succeed, learning, anything God created, playing guitar, doing things the 'long' way, Philippians, excellence, Chick-Fil-A, and making his wife smile. He started ChristianPF in 2007 and has been having a blast ever since. Find him on Facebook & Twitter.
Disclaimer: The CPF articles should not be taken as financial advice. All suggestions are followed at your own risk and should be followed up with your own research. Also, all articles offer honest and genuine opinions about topics, products, and services regardless of any resulting compensation. That said, some links help us pay the bills by compensating us for referrals. Find out more here.