The economy is not that great and having a full on car business when you own and run a small business is not ideal, or profitable. Cars will take longer to shift from a lot and the longer they are on the lot and unsold, the less their value will become over time.
But what if you buy a car on the side for relatively cheap, do it up, drive it for a short while and then sell it on as a hobby to get a little extra cash every now and then.
Sometimes you’re going to get a dodgy deal and that’s going to create problems if you’re going from one car to the next and don’t have a spare car to fall back on; you may lose a lot of money in the process and will have to get some money together for a new motor.
Perhaps the best way to do it is to keep your main car out of the side trading cycle and just buy in affordable cars for the thrill of fixing them up, then driving them around a bit before selling on and making profit; just not as a source of main income, but rather just a little extra every now and then.
If you get any more than two cars you may find that you need to get a garage that will cost you money each month, plus whatever the costs are for utility costs and tools, so what you decide to do as a hobby is up to you, just don’t stretch yourself too thin and keep it exciting.