It's reasonably easy to make money selling cars, though you will need some capital to start off the venture. As a result of the financial crisis, second hand cars are again being seen as a great way to own a good, but previously used, car.

You could sell brand new cars too, but that would require a properly set up garage and a dealership agreement with a car manufacturer. It will be much easier to start off selling second hand cars. It will be much more profitable too.

You should decide before you start exactly how much you hope to make selling cars. Are you looking for some extra money each month selling one or maybe two cars? Or are you looking to do this full time and make as much money as possible? Once you have decided the answer to these questions you will know how best to proceed.

If you sell just one car a month you could make an extra $1,000, or as much as an extra $3,000. This assumes that you are able to buy the cars fairly cheap and perhaps do some work on the cars fixing them up. You don't have to be a mechanic to do this, though that will help. Just a thorough clean up will increase the car's price, as well as replacing any small parts, light covers and such, that may need it.

Get in the habit of knowing the value of a car by just looking at it. This isn't as difficult as it may sound. Get a used car guide. They are usually published every month. Identify cars parked in parking lots and look up their resale price. Practice this relentlessly until you can look at a car passing you by and make a fairly accurate guess at the car's likely worth.

This skill will come into its own when you start buying used cars. You should constantly be looking for cars that are priced lower than their likely worth. This will increase your profit margin slightly. Repeat it often enough and you will maximize you profits substantially.

You will need to source your cars carefully. You can buy directly from individuals through the used cars section of a local newspaper. However, a better long-term solution may be car auction houses. Remember though that you will not be alone in looking for a bargain here. There will be competition.

You may decide to specialize in a particular kind of car. It could be small budget cars, small vans or maybe pickups. Specializing in one particular area has its benefits. You can become known as the person to go to if someone needs the kind of vehicle you specialize in selling. This is good business practice; rather than trying to be everything to everyone, you target only the kind of people who would buy the kind of car you specialize in.

Starting off selling cars from home should work out fine in the beginning, but if you get bigger you will probably need bigger premises too. You could perhaps rent an old garage, or perhaps an empty lot to store cars on. You will need to think of security and insurance, so don't go this far until you can really afford to.