Many people that sell used cars for profit tend to be at the bottom of the food chain when it comes to morality or ethics. Yes, this is a gross generalization because not everyone that sells used cars is a crook, but it is the perception amongst many and the reason for that perception is because it so often rings true.

Lets discuss a used car deal gone bad and the good and evil choices presented to you…

You’re checking out a used car advertised on Craigslist and the seller swears that the reason its running a little hot is only because it needs coolant in the radiator. So instead of going over the simple easy steps on your ‘Car Inspection Check List’ for checking the head that came with your Lazy Way To Buy And Sell Cars For Profit you choose to believe the seller. I mean hey, sellers never lie, and besides, you just reeeeeally love this car!

Okay, so after a 3 minute test drive around the block (because the seller says he has to leave to do something else) you buy the car for $800.00 less than what he was asking which you think is about $1200.00 less than what a car like that typically sells for.

So as you’re driving the car home with a big shit eating grin on your face thinking of the easy $800.00 to $1000.00 profit you’ll make, you notice that its running quite a bit hotter than it did during the 3 minute test drive. Hmmm, imagine that?

And then on the last leg of your drive home (which is a long steep hill), you see the temperature gauge (and lucky for you there is a temperature gauge instead of an idiot light that usually goes on when its too late) shows that the car is totally over-heating. “Oh crap, I added water to the radiator before leaving the sellers house! Why the heck is it over-heating? He told me it just needed to be topped off!”

And as you pull off to the side of the road you see steam flowing from under the hood. Aaargh!

Later, after having the car towed to your home (because you’re still delusionally convinced you only need to add coolant even though you added water at the sellers house), you add coolant to the radiator and start the car. The strange thing is that the fluid level in the radiator keeps going down as the car sits there idling…and there is water dripping from the exhaust pipe along with billowing white steamy looking smoke. And the longer the car runs the more water you you keep having to add to the radiator…and you’ve checked the ground under the engine and clearly see there are no leaks. Huh?!

Guess what? That car needs a new head gasket minimum and possibly a new head. “Yikes, thats a $1500.00 repair!” you think to yourself.

Goodbye profit!

Why did this happen? You chose to ignore a couple of the Cardinal Rules for inspecting a used car. You believed what the seller told you without doing your own due diligence (i.e. proper inspection and test drive) and you allowed the seller to rush you during the car buying process.

So you bought a car for $3200.00 that you thought you could quickly flip for $4000.00 or more, but now you’re screwed and will be faced with several choices.

You have a decision to make based on the following good and evil choices…

1) EVIL: Be a pussy and sell the car to another sucker without telling them about the head. In other words, you will rip them off in exactly the same way the other guy did to you.

2) GOOD: Attempt to sell the car for what you paid and tell all potential buyers exactly what is wrong with it.

3) GOOD: Fix the head yourself and still make a decent profit.

4) GOOD: Get it fixed by a good and relatively inexpensive mechanic and hopefully break even after selling it.

Those are the only choices you will have and here is my breakdown of each…

– Choice #1 is thoroughly evil and no amount of rationalizing on your part will make it anything but evil. Its uncool and its bad karma and if you operate this way then you are someone I don’t want to associate with.

– Choice #2 is okay if you can pull it off. “Pulling it off” though usually requires you to have bought the car for a lot less than the $800.00 below the asking price of this hypothetical vehicle and being totally honest with the buyer about the condition of the vehicle.

– Choice #3 is great if you’re handy and know how to use a torque wrench and this will still allow you to make a decent profit. I’m not a mechanic but I have personally replaced two head gaskets before, so if I can do it then I figure anyone else can too. The head gasket is cheap and found at any auto parts store and then you will have a machine shop surface the top of the head because they usually warp a bit from the heat. Its been a long time since I’ve done this but the last time I had a head surfaced (machined) it cost me about $100.00.

– Choice #4 is cool but getting a repair like a blown head gasket or a cracked head done for a reasonable price usually will have required to you have a good cheap mechanic in your back pocket ready and waiting as outlined in The Lazy Way To Buy And Sell Cars For Profit. “But I won’t make any money if I go with Choice #4!”  True, for a repair like this, and considering the price you paid for the vehicle, you probably won’t make money, but its possible you will break even on the deal.

A sidenote about breaking even and “failed” deals: I would never consider breaking even on a deal a “failed” deal. In fact, as long as I was progressing in my knowledge of buying and selling cars, I wouldn’t consider any car deal I didn’t make money on a “failure.” To profit isn’t just about making money (although its a damn good incentive!), so never ever discount the lessons gained from experiences even when those lessons are preceded by so-called failures. Its only a “failure” if you don’t learn from the experience and move on.

So there you have it. Your choices come down to being a rip-off scum bag liar and continuing to perpetuate the image of used car sellers being crooks, or man-up, learn from your experience and live at peace with yourself and the Universe.