How to Become a Car Trader

Car traders make money by purchasing cars at a cheap price and then trading them for a car that has a high market value. They may also sell a car when they feel they have no other trade options or have found a car with an extremely high value.

• Learn how to do basic car repairs and maintenance. Most car traders make money and profit by purchasing cars that need light repairs or bodywork, fixing them and then selling them or trading them for a car with a higher market value. Consider attending your local community college or training institute to learn how to repair cars.


• Obtain your reseller's license so you can attend vehicle auctions. Auctions are a great place to locate cheap cars. Some may need minor repairs, and others may be like new. Most car auctions are not open to the public and only allow individuals with retail licenses to attend and bid on the vehicles. You can get a reseller application from your local Department of Motor Vehicles.


• Purchase trade plates from your local Department of Motor Vehicles. Trade plates allow traders to drive vehicles they have purchased to their home or business location without requiring the trader to purchase insurance. Trade plates will save you money and allow you to transport the vehicles until they have been sold. If you will be driving the vehicles regularly or allowing your customers to test-drive the vehicle, you will need to purchase dealer tags and business insurance instead of trade plates.