Tag Archives: private seller

How to Make Money with a Classic Car

Make Money with a Classic Car

 

How can I make money with a classic car? This question comes up quite often in our line of work and is often posed by classic car owners who aren’t immersed in car culture and may not have the advice of car enthusiasts at their disposal. We’d like to note that most car owners can tell you everything about their cars, from the production year to their current value, and most love their cars and appreciate their history. However, many people simply have no idea how or where to connect with others who can help them use their cars to turn a profit.

After some research, we found that there aren’t many online resources available for car owners who want to use their cars to make money, so we put together a list of tangible ways to use your classic car to earn some cold, hard cash. If you own an older model or classic car, read on for a variety of ways to help your dreams of making money with your old car become a reality.

How to Make Money With a Classic Car?

Many current and past car owners have tapped into these money-making methods using their cars with successful results. Depending on your reasons for needing to make cash, the condition of your car, your current use of the car, and more, you may want to opt for using one or more of these methods. We think you’ll find you can generate some substantial income if you’re willing to put in the time and effort.

Sell Your Car

We’ll start with the obvious—if you need to downsize your current car collection or make some fast cash, selling your car is the way to go. The sale of a classic car typically means a profit for car owners, especially if you haven’t needed to invest much in restoration or upkeep. If you’re looking to take a more hands-off approach to earn money from your vehicle, selling your car could be the simplest solution.

In addition, if you are experiencing a financial crunch or no longer feel you have the time or money to commit to your car, selling is certainly an option. Some unfortunate circumstances involve owners who must part with their car due to financial troubles or because their car is too expensive to restore or maintain. Parting with your treasured vehicle due to financial hardship is not ideal, but selling your car may be the right choice.

Classic Car Flipping

Other classic car owners choose to restore and sell cars repeatedly, known as flipping. Car owners in this category can make a substantial amount of money finding cars to restore and put up for sale. Lots of people love the look of a classic car, and lots of people love to collect cars, so selling them for a profit is great for anyone with the time and skill to turn old cars into collectibles.

If you need to earn some quick money using your car but don’t wish to part with it, you can look into using your classic car as loan collateral. Collateral loans are a common way to earn money while you maintain ownership of your car. Of course, this option presents some risk, especially if your finances aren’t where you’d like them to be.

If you are struggling to qualify for loans that have low-interest rates or if you are having trouble qualifying for a personal loan, your car is an asset you can use to request the money you need. Using your car as collateral, you can apply for a vehicle equity loan with select lenders. Vehicle equity loans can include benefits such as a less stringent qualification process, lower interest rates, and higher borrowing rates. If you use your car for a collateral loan, be sure to repay your loan so you can keep your car with you where it belongs.

Private Classic Car Rental

Private Classic Car Rental

Private car rental can be a great way to use your classic car to create profit, and it allows others to enjoy the work you’ve put into your ride. If you are comfortable renting your restored classic to clients for several days at a time, long-term car rentals can be the financial solution you are seeking. You can rent your car to others for a few hours, for weekends, or for entire weeks. Long-term rentals are great for creating a consistent flow of income and can help you build rapport with clients so that you can do business with the same clients multiple times.

Car-Sharing Services

Car-sharing is a fairly new option, and it can be appealing to owners of older cars who want to make some passive income. Car sharing is a subtype of car rental where people can use services like Turo and Getaround to circumvent traditional car rental companies and rent from private owners. Customers rent available cars for limited periods (usually several hours or less) for lower prices than rental services.

With these services, you’ll have the benefit of thorough driver screening, remote access service (so you won’t have to meet renters to hand over the keys), and more. Each service differs, so be sure to research the requirements for short-term rentals and find the option that best suits your car and your needs. If you have an older car in good working condition and you feel comfortable renting the car out for short periods, this option might help you bring in a few bucks.

Special Occasion Private Car Rental

Renting your car out for special occasions is another common way to get started. Weddings take place all year long, so if you advertise your vehicle via the right channels, you can stay booked with clients who want to make your car a memorable part of their special day. Birthday celebrations are another occasion when people choose to rent private transportation. Adult parties often include alcohol, meaning partygoers will require safe, reliable transport to and from their locations.

Depending on the make and model of your classic car, you can also look into using your car as a rental for even more special occasions. Prom season is an excellent time to advertise your classic car for rent to juniors and seniors looking to travel to their celebration in style. In addition, many schools throw formal dances throughout the year. If you invest in reaching clients for these events or similar occasions, you can look to local high schools for information on parties and other celebratory events.

Industry-Specific Rentals

You might consider renting your car to film, television, and photoshoot productions that wish to create a nostalgic atmosphere with the use of a cool classic car. Television and movies always need cars for scenes, especially movies set in other periods. If you have a ’90s model car or later in good condition, you could make a healthy profit by creating a relationship with production companies. Your options for renting your car to companies will largely depend on the level of demand for your vehicle. Some film companies pay to rent cars day-to-day. Other companies pay to rent cars on a weekly or monthly time frame based on the scheduling needs of the production.

If you invest in this money-making idea, your classic car can be featured on television shows, in music videos, or on the big screen. The limits of this form of rental are plentiful, especially if you can be reliable. Many film companies like to partner with car owners they can count on for projects over and over again.

Other Short-Term Rentals

Other groups that may consider renting a classic car for a night, weekend, or even a more extended period of time include car enthusiasts and collectors. These individuals love driving classic cars but may not yet own one or may be considering purchasing a car like yours. You also might consider renting your car out for corporate events like theme nights, galas, and more.

Private Event Chauffeuring Services

If you wish to make money with your standout classic car but aren’t comfortable allowing others to drive it, consider a side venture as a private chauffeur. People often rent limousines for special events like proms, galas, birthday parties, and more, and a night out in a classic car is much more unique—and often much more affordable.

Chauffeuring allows you the same benefits of private car rental with the added luxury of keeping your car as safe as possible at all times. Or, you might consider finding a professional driver to operate your vehicle during rental periods. The minimal expense involved allows you to thoroughly vet your driver and still cash in on rental fees.

You can earn a steady income as a driver once you take steps to get the proper paperwork for your business venture. Being a private driver and securing your car for rental requires licensing per your local driving authorities. Every state has different requirements for operating your vehicle to run a small business. Make sure you fully understand your local laws and secure all the necessary certifications you need to qualify to run a chauffeur service.

Marketing Using Your Classic Car

Car Wraps and Fleet Graphics

Caption: Image Courtesy of Coupe Wraps – Car Wraps and Fleet Graphics – Ads on Wheels

If you own a business and need a unique way to advertise your services, you can place branded magnets or decals on your car and use its visual appeal to attract attention as you drive the car around town. Self-advertising is a creative option for an up-and-coming business that needs a cost-effective way to promote its services.

If you are not a business owner, consider how you could help businesses in your area promote their brand using custom images and slogans temporarily displayed on your car. Classic vehicles are eye-catching on their own, so they make great mobile billboards. Local businesses will often pay a fee to advertise for a set time period.

Larger companies often utilize a process called wrapping, where cars are custom-fit with a whole-body wrap with branded images. Sometimes, third-party marketing companies will find car owners to connect with businesses for wrapping contracts. However, take caution with this money-making strategy because some of these third-party companies are scams. Perform research to make sure the business you are working with is legitimate. Reputable companies will be able to show you legitimate accreditation and set clear payment terms for your services.

Ride-Sharing Services

Driving for a ride-sharing service like Lyft or Uber can help you generate income with your older car. Many individuals will see your classic vehicle as a unique addition to their evening and may even prefer your services to others. Or, consider adding some of the marketing ideas listed above and pulling double duty as a ride-share driver and rolling billboard.

Make Money with a Classic Car FAQs

Classic Car Income

Now that you’ve browsed some ways to generate income with your older car, you likely have some questions about the ins and outs of doing so. Here are some of the most common.

Q: Is It Legal to Use My Car to Make Money as a Private Renter?

A: The general answer to this question is yes. However, you must comply with your local authorities. Car owners are required to apply for a Private Vehicle Hire (PVH) license to rent their vehicles to clients. Car owners also need a commercial driving license and must apply for licensing to book riders. With any venture, it is best to research your local laws to ensure you are adhering to all requirements to ensure your business runs smoothly and legally.

Finally, if you choose to rent your classic car out for special occasions, create a rental agreement that is clear, concise, and lists what will happen in the event of property damage.

Q: What Are Some Pros and Cons of Renting Out My Classic Car?

A: Classic cars are valuable, and these cars often require significant funds to maintain. As a result, it’s natural for car owners to be apprehensive about renting out their vehicles for use. Here are the pros and cons of renting your classic car.

Pros of Renting Your Car

  • Making money via a passive income stream
  • Setting your rates and schedule (if you rent privately)
  • Qualifying for small business tax deductions
  • Keeping your car in proper working condition by having someone else operate it consistently

Cons of Renting Your Car

  • Wear and tear to your car
  • Expenses for gas and maintenance
  • You will have to manage the use of the car if you choose to rent privately or rent via sharing services.
  • Additional insurance and licensure requirements to maintain
  • Allowing strangers to use your car, risking the need for repairs
The risks of car rental may turn some away from renting, but the pros are worth it to many other car owners who want to make money. If you decide to rent out your classic vehicle, you stand to make a substantial income, so take the time to weigh your options. The final decision will be based on your risk versus your potential reward.

Q: Are Classic Car Values Falling?

A: Since the number of classic cars in existence will remain fairly static, as no more are currently being built, the value of a classic car is less reliant on supply and demand. Previously, experts predicted that the value of the oldest classic cars would decrease slightly while newer models would increase. Presently, however, optimism is high, and both value and car prices have remained steady.

If you’re wondering whether your classic car could decrease in value as you tap into its earning potential, the answer is “maybe.” If your car is damaged during use, it will likely see a loss in value.

Make Money With a Classic Car … So You Can Buy More Cars

You Can Use Your Classic Car to Make Money

You can make money with a classic car consistently using these money-making ideas. Many people choose to use multiple of these money-making strategies to bring in a substantial amount of income without breaking much of a sweat.

However, as with any other business venture, you’ll want to use caution when renting, driving, or modifying your car. Always do thorough research regarding rental laws in your area so you can operate your rental business in a manner that’s compliant with local rules. Taking the time to protect yourself and your property with research beforehand will be invaluable in case of car damage or accidents.

Whichever method you choose to earn money, do so with confidence and display your love for classic cars. Our online shop offers a variety of classic car merch items for those looking to restore classic cars and share that love with others.

Buying a Used Car: Private Seller or Dealer?

Buying a Used Car

 

If you are looking for a used car, you may be overwhelmed by the options available, and you likely have many unanswered questions. One of the most common questions used car buyers have is, “Should I buy a used car from a dealership?” There are advantages and disadvantages of buying a used car from a dealership versus privately, and it’s not unusual to wonder if one option is better than the other. You want to be sure that you’re getting the best deal for your hard-earned money, but you also don’t want to take any chances of buying a lemon, so how do you decide? The best way to go about your purchase is to make an informed decision based on the available tools. Consider these tips as you search for your “new to me” car.

Pros and Cons of Buying a Used Car from a Dealership

When you are buying a used car from a dealer, there are many factors to consider. You may not know the dealership that you find the car you’ve been looking for at, and if it’s not in your local area, you may not be able to rely on word of mouth from other customers that you know personally. If this is the case, you can turn to online reviews to get an idea of the dealership’s reputation. Keep in mind that people tend to post reviews more when they are unhappy than when they are happy, so don’t automatically assume that the dealership is terrible if they have a few negative reviews. You can also look at how long the business has been operating. Dealerships that have been in business for many years tend to have a good reputation, as they likely wouldn’t have made it if they weren’t doing something right. Take a look at these pros and cons.

Pros

  • Financing at dealerships is a convenient way to easily take care of your purchase if you aren’t paying cash. They typically offer competitive interest rates. If you have decent credit, it saves you the trouble of running back and forth between the dealership and the bank to get everything finalized.
  • Many dealerships offer used car warranties that give you a little peace of mind that you can’t get from a private seller. They also give their used cars a thorough inspection before putting them on the lot because they want to be sure they are offering a quality product that will speak to the reputation they are trying to uphold. These warranties may not be as extensive as a warranty on a brand new car, but they come in handy if you experience any problems soon after buying the used vehicle.
  • Know-how. Because dealerships handle the paperwork involved with buying and selling cars every day, they know what they’re doing regarding registration, bills of sale, and title transfers. When you buy a car privately, you or the seller could make an error that may hold up the process of purchasing your car.

Cons

  • Buying a more expensive car. When you shop at a dealership, it has a wide variety of cars on their lot, and the cars come in a wide range of price points. Not only could you be tempted to buy a car that is outside your budget, but the salesperson will likely try to encourage spending at the very top of, if not beyond your budget constraints. Be sure to know your top dollar and stick to it when you walk onto a used car lot.
  • Dealerships may have the same car in roughly the same condition as a private seller is offering but at a higher price. This is because dealerships have business overhead such as rent or mortgage, utilities, property maintenance, and employees they need to pay. This means that they must figure a portion of this expense into the price they put in their cars, and they can only go so low before taking a loss. This means you may pay a little more at a dealership.

Pros and Cons of Buying a Car from a Private Seller

Pros and Cons of Buying a Car from a Private Seller

If you find a car for sale privately that you think is perfect for you, there are also many facets to the deal that you must keep in mind. Chances are you don’t know the person who is selling the car, so you have no idea what their motives are and whether they are honest about the vehicle’s condition. Because they are not a business, there are no reviews you can read unless they happen to be advertising the car on a website that tracks customer reviews on past transactions with the seller. If you are considering buying from private sellers versus a dealership, these pros and cons may help you decide.

Pros

  • Less sales pressure. Salespeople on a used car lot are under immense pressure to make sales, as they rely on commission to make their living. They often transfer this pressure to their customers by acting aggressively and pushing the buyer to buy the car they are trying to talk them into. When you buy from a private seller, you don’t get the same kind of pressure. The seller may be motivated and a bit pushy, as well, but they typically seem much more relaxed about making the sale than dealerships are.
  • Private sellers are more likely to be asking a lower price in general for a used vehicle than a dealership would ask. They also tend to be more flexible when it comes to negotiating because they either need the cash or want to unburden themselves of the vehicle because it takes up space in their driveway and costs them money for insurance.

Cons

  • When you buy a used car from a private seller, you and the seller are responsible for taking care of all of the paperwork involved with the title transfer, registration, and sale. If you aren’t familiar with the process, it is easy to make mistakes that could hold up the process. Be sure to check with the DMV first to see what you will need to register your vehicle and take your time to fill out everything properly. If you have any errors on your paperwork, you will need to meet with the seller at their convenience to get things straightened out.
  • No guarantees. Unlike a dealership, a private seller will not be offering any type of warranty on the vehicle you buy. If anything goes wrong, even as soon as you drive away, the financial responsibility for repairs falls on you. The best way to avoid any problems is to have your mechanic thoroughly inspect the car before buying it. Even if the seller is completely honest about the vehicle, there may be underlying conditions they are unaware of.

Buying a Used Car in Arizona

Buying a Used Car in Arizona

When you are buying a used car in Arizona or any other state, you must be very cautious about the deal, and you must feel comfortable with the person who is selling the car. Buying from a dealer vs. private seller is an issue you must decide on, but no matter which option you choose, you should walk away from the deal if you don’t trust the seller. There are plenty more cars on the market. If financing options are not working out in your favor, you may opt to buy through a finance company such as us, Red Mountain Funding. We can save money on taxes and approve almost anyone who applies.