You can make money buying and selling cars quite easily. You may need some capital to start off with, enough to buy your first car, but after that you can most likely put part of the profits back into the business and finance the buying of more cars to sell that way.

If you already have a car to sell the idea of making money from buying and selling cars will be so much easier. But this is not essential. You don't have to be a mechanic either, though it will probably help if you are. However, you do need to know about the value of cars. That bit is essential.

As well as knowing the value of cars, you need to know what kind of cars people are willing to buy. Some basic research online will tell you what models sell best in your part of the world. This will be the best type of car to sell and the easiest to sell too.

Start off by identifying three or four basic models that you know are already selling well and set out to understand their value. Look around used car lots and make a note of the prices the cars are selling for.

Look at the cars in people's driveways as you walk past and try to work out their value. You want to get to the stage where you can look at any car and instantly know with a fair degree of accuracy exactly what it is worth. This skill will be invaluable to you when you start buying cars for resale.

Buying cars from other people and not from a used car lot is the best way to profit from this business. Once you can look at a car and know its value, just spend a few minutes sizing the car up, then offer the owner $1,000 less than what you believe its true value to be.

The owner will most likely not agree at once, but you will have started the bargaining phase. The owner may have a fixed price he or she is set on getting. Always try to bargain it down in your favor, even if it's a fair price. The name of the game here is making the maximum profit you can.

Once you have agreed a price, take the car away and examine it thoroughly. You should be able to have a fair idea of its condition by now. The more comfortable you are with car mechanics the better, but there are plenty of good books that can teach you a lot if need be.

Try to see what you can do to increase its value for the lowest cost to you. Never try to resell a car in a dangerous condition, but making it look better or feel better need not cost a lot, if indeed anything other than your time and effort. Clean the car thoroughly and shine the paintwork. This alone can increase the price substantially.

When you are ready to sell the car, take out an ad in the local newspaper, or advertise it in a local shop window if they agree. Hang a sign on the car itself with your phone number on it. In fact, do whatever it takes to find a buyer, and when you do, simply start the process all over again, making a bigger and better profit each time.