Vehicle Auction, High Profits

Earning money from car auctions is quite simple. We know that there are several people who live buying and selling cars.

What most people don't know is that, many of the resold cars are purchased at auction.

In the midst of this crisis caused by the pandemic, some people ended up losing their jobs, and one of the best ways to change professions and earn money is through vehicle auctions.

If you were unemployed during the pandemic, are looking to fire your boss or just want to raise some extra money, know that a good option to capture the dreamed financial freedom then reading today's article is more than mandatory.

It is likely to make money at auction because the cars are cheaper

The first subject to be said here is that car auctions are a safe and legal way to buy cars and with the arrival of the pandemic, car auctions, especially online ones, became a fever.

Anyone can trade from wherever they are at the time that is easiest for them.

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• Auction of Vehicles with Open Lots

The business works as follows:

You buy the car at auction for less than its list price, then resell it for a higher price.

That seems to be advantageous, doesn't it?

But here it is necessary to understand a very important point: why are cars sold at lower prices?

After all, that's what makes it possible to make money from auction cars.

Where do auction cars come from?

The reason auction cars are so cheap is because of where they come from.

Auction vehicles can have 4 different origins. Are they:

Court lawsuits;
Claims recovery;
Fleet renewal;
Default.

Let's talk a little about each of these car origins and how they allow you to earn money with car auctions, all within the law!

Court lawsuits

Judicial processes are filed to comply with the payment of debts people and companies may have with lawsuits filed in court. The most common ones are:

Declaration of bankruptcy of companies;
Financial pending of taxpayers before the payment of taxes;
Labor lawsuits from former employees.
Thus, it is commonplace for the judge responsible for the action to decide to confiscate assets so that debts can be settled. As a way to acquire quick cash, real estate, furniture and especially vehicles end up at auction.

Know more:

• Learn to Make Money with Vehicles
• Learn how to make money with motorcycles
• Opportunity to Make Money with Cars
• Learn to Make Money with Electronics
• Auction of Vehicles with Open Lots

Claims recovery

When we talk about claim recovery, cars are usually recovered from small and medium claims. This is different from the famous total loss, where the car is unrecoverable.

In the case of medium-sized collision claims, the car receives new parts that are essential for its perfect operation.

Before being marketed, these vehicles undergo tests that attest to their level of safety. When the car does well in the tests, it earns the CSV Seal, which is the Vehicle Safety Certificate.

There are also other types of claims that can bring a car up for auction.

If a car is found after theft or theft, it is also subjected to inspection to validate whether any damages are located only on the outside.

It is trivial that cars from this type of accident have a good chance of maintenance and recovery.

After that, insurance companies send them to auction, where they can be purchased for values well below the table.

fleet renewal

This is one of the best reasons why it is possible to make money from car auctions.

With the need to renew the cars that make up their fleet, medium and small companies choose to auction their older models.

With this measure, they recover part of the amount invested in cars, motorcycles, vans and even trucks in a practical way, contributing to the stability of cash flow, guaranteeing the money needed to acquire new examples.

default

And that's the last reason why cars go up for auction and it can guarantee a dollar in your pocket.

From the moment a person signs a loan, he becomes a debtor to the institution that granted the credit for the purchase of the car.

As in practice, the number of installments tends to be a little large, the risk of financial unforeseen circumstances arising in the middle of the road is also high.

Unable to continue paying the car's monthly fees, the owners are then summoned to return the cars to those companies that made the installment payments possible.

The conclusion of the non-payment is exactly the execution of an auction.

This solution found by the companies is the most useful to minimize the damage linked to the default of the buyers.

Now that you already know the reasons why a car ends up in a yard, it's time to learn about the 10 steps to make money from a car auction and achieve the financial freedom you've dreamed of

10 steps to make money from car auction

There are some facts that make the auction a lure to earn money.

The first of them is that they tend to appear far from dealerships, which helps to reduce competition.

In addition, the eventuality of cars having minor malfunctions drive prices even lower.

But that's just the beginning.

If you follow our booklet, then we guarantee you: Your money and therefore your financial freedom will be guaranteed, let's go there!

10. Study the auctions

The first step for anyone looking to make money at auctions in Brazil is to start studying auctions.

Find out how a face-to-face auction works and also an online auction.

Go to the auction houses on the day of the auction, observe how the movement takes place and, most importantly, know the terms used.

ENVIRONMENT AT AUCTIONS IS FUNDAMENTAL TO WIN MONEY!
While the terms may seem confusing at first, they quickly become familiar and even funny.

You will hardly buy a car in the first auction you participate.

For everything in life, prior knowledge and dedication are needed, and to make money in this universe you also need to dedicate yourself.

9. Know all existing fees

This is one of the most important points for you to make money with a car auction.

Before entering this universe, many people believe that they only need to pay the value of the car. A rather common mistake.

In addition to the value of the car, the bidder must also pay:

5% commission for the auctioneer or the company organizing the auctions;

Administration fees;

Other values, depending on the type of auction and the organizer.

In addition to everything, it is necessary to bear in mind that it is necessary to pay for the regularization documentation, possible mechanical and aesthetic repairs.

All this information about what needs to be paid and the actual state of conservation of the car are in the public notice.

Another relevant point that you need to know is that usually, the car payment needs to be in cash.

And that alone makes the chances of making money even greater, as the competition turns out to be less.

8. Create cash and working capital

Another interesting point to make money from buying and selling vehicles or scrap from auctions is the convenience of having a relatively large cash register.

In addition to cash, it is necessary to have working capital.

Working capital is another necessary point. Because it will be useful to acquire more and more vehicles.

YOU NEED TO RAISE A MONEY BEFORE ENTERING THIS UNIVERSE!
Experts in the purchase and resale of cars and auction scrap say that a box of around R$ 20 thousand is reasonable to start making money in this type of business.

“It seems like a lot, but after two or three successful purchases, the money starts pouring in and then it's just joy”, says Lauro Filho, who makes a living buying and selling auction cars for 11 years.

7. Look for secure auctions

Here we have a very valuable tip, especially for beginners.

The internet made it possible for many people to access auctions, but at the same time that access grew, fraud came with them.

It's moderately simple not to fall for auction scams, but you need to pay a little attention.

Tips for finding safe auctions and auction houses are:

Check if the address of the auction site is real, this can be done through Google Maps;
Note if there are any Portuguese errors in both the name and the spelling of cars;
Check out the presence of the Secure Auction Seal – this is an essential initiative that efficiently guarantees peace and security;
Check the auctioneer's reputation, this can be done quickly on portals like Reclame Aqui or through social networks;
Pay attention to payment methods: NONE of the auctioneers asks for advance payment;
Always read the edict very carefully;
Consult the list of fake auctions;
Research whether the auctioneer is registered with the state board of trade, this is mandatory for the auctioneer to work.

6. Read the notice

The notice is the most essential document of an auction. Therefore, its reading is more than mandatory for anyone who intends to buy a car at auction to resell.

It is the notice that regulates the occurrence of the auction.

The public notice will contain information such as date, time, legality, lots available at the auction, the cars, initial values, condition, auctioneer fee, values to document the cars and much more.

SEARCHING FOR SAFE AUCTIONEES AND READING THE NOTICE IS FUNDAMENTAL TO WIN MONEY!

If you want to make money from a car auction, always read the public notice!

And if there is no announcement, our tip becomes an obligation: get out and do not participate!

5. See the vehicle live

This tip may seem like a no-brainer for beginners, but it's a must for anyone who's been in the business for a while!

Although many people don't know, it is not allowed to start the car before buying it. But you can look at it, touch it and even smell it!

In this way, after reading the public notice and having your targets defined, go to the courtyard before the auction and observe the car very carefully.

And here's an interesting tip: take a trusted mechanic with you.

Counting on a professional look and help at this time is essential in order not to make bad deals and suffer losses.

And remember that we talked about touching and smelling the car, well.

Open the doors, open the hood, pull the dipstick, look at the latches. This indicates the condition of the car.

With regard to the smell, if the vehicle smells musty, give up on the finish.

4. Find out the vehicle's list price

Here we enter a necessary point of negotiation!

Knowing what the car's list value is is fundamental, already thinking about the time of resale.

Even buying at a price below normal, at the time of resale, you will only be able to sell the car for values higher than what it is worth in the FIPE table.

Auction experts claim that usually, most cars bought at auctions offer a profit margin in the range of 20% to buyers.

In certain and special purchases, these margins can reach up to 30% and 40% of profit.

When we talk about scrap, profit margins are pre-established in the range of 30%.

3. Set a maximum amount to pay for the car

After reading the public notice, knowing the fees, the amounts that will be spent on documentation and possible repairs, you will need to stipulate a maximum amount to be paid for the car.

And respecting this maximum value is the basic thing to not get out of harm's way!

When bidding, always offer values below your agreed maximum value.

If your limit is exceeded through another offer, you must abandon the purchase!

When you acquire a car for values higher than the stipulated maximum, the chances of taking damage are great.

Therefore, accept defeat and move on to another target.

Know more:

• Learn to Make Money with Vehicles
• Learn how to make money with motorcycles
• Opportunity to Make Money with Cars
• Learn to Make Money with Electronics
• Auction of Vehicles with Open Lots

2. Buy the car and regularize it

An essential step to profiting from auto auction money is to acquire the car you are targeting.

Once the car has been purchased, you must then regularize it, pay any outstanding debts, arrange the documentation, complete the repairs that need to be done and that's it.

AFTER BUYING, JUST REGULARIZE IT TO RESELL AND WATCH THE MONEY IN!

An essential point that we need to say in all this is that the process of releasing and regularizing the documentation takes between 60 and 90 days.

1. Sell the car and earn money

And the main point to profit money is exactly to sell the vehicle!

After you buy the car, fixing it when you sell it is what matters most.

Be correct, but firm when negotiating. This is how you will earn money to change jobs, fire your boss and achieve the much desired financial freedom.

You can advertise your car on specialized websites, social networks or leave it on consignment in parking lots or dealerships.

Very important: it's not just going to the auction and buying

An important point for anyone wishing to make money from a car auction is that it is not enough to just show up and participate in an auction!

In order to place your bids, you need to register, be approved, qualify to participate in the auction itself.

Let's now point out how to complete each of these steps before starting to place your bids.

Step 1: Registering

The first step to participate in an auction is to confirm with the auction house that is organizing the auction of the vehicle you want to acquire.

To register you need to provide the following data:

Your full name;
Email and other contact information;
General Registration (RG);
Individual Taxpayer Registration (CPF).
Once your registration is ready, you will need to wait for your approval and make your qualification as we will show below.

Step 2: Approval and qualification

Once your registration is done, your approval will occur automatically, it is actually very fast. In just over 10 minutes you will be approved.

Once approved, you will be very close to participating and buying a car at auction, you will only need your license.

And that's another overly fast step.

To guarantee your qualification, it is only essential to log in to the website of the auctioneer you registered for, choose the auction in which you want to participate that has your car of interest and that's it, you will be able to bid to raise your money!

And here we have an essential point worth highlighting: You will need to register whenever you want to participate in an auction promoted by the auction house where the registration was carried out.

Step 3: Participating in the auction

After having your registration approved and your license completed, it's time to participate in the auction and go after the cars that will guarantee you good money.

Conclusion

As you've just seen, profiting from a vehicle auction is possible, but it requires a little study, planning and, above all, self-control.

Now that you know how to make money from buying and selling vehicles and scrap from auctions, you must be wondering:

Where can I find safe car auctions to purchase and resell?