Fixing up and then selling cars is almost like "flipping" a house. You're sell a vehicle to someone who is in need and you can make a profit on that vehicle as well. If you're mechanically inclined, you can save a ton of money fixing the cars yourself and then make a profit when you sell them.
Acquire the necessary funding. The first thing you'll need is money. Start with one or two cars. You might be able to get this funding with a bank loan, a personal loan from a family member or by dipping into your savings.
Find reasonable deals on used cars. Find used cars that need work done, preferably cheap cars. There are a few different ways to go about this. Check your local newspaper, advertisement papers and sites like www.craigslist.org. These are good places to find cheap, used cars that may need some work done to them. Consider vehicle auctions as well. The U.S General Services Administration (GSA) lists local auctions (see Resources).
Examine the cars you have purchased. Once you've purchased a vehicle or two, thoroughly examine the cars to determine what needs to be repaired. Make a list of the parts you need and what needs to be done to the car for it to work properly and be worth more money than you paid for it. Purchase the parts you need and fix the vehicles. Keep a record of how much you spend on the cars, so you can set the price to make a profit.
Detail the cars to make people more likely to buy them. After you have the cars in great working condition, clean them thoroughly, to make them more appealing to potential buyers. Have the car washed on the outside, clean the windows and wax the car. Then, vacuum the car, wipe the dashboard, doors and consoles down with interior car cleaner to protect them and make the car look better. Make sure the car looks perfectly clean and shiny.
Sell the cars. Add up the money you've put into the car and what a fair price would be. Set the price so that it's not only fair, but that you're making a profit. List the vehicle for sale on craigslist, eBay, local papers, ad papers, "Auto Trader," and other car magazines. The more exposure you have for the vehicle, the higher the chance that it will sell quickly.
