The No Limits Ladies have posted an article on how to flip cars — how to buy used cars for cheap and sell them again for a profit.
I find used vehicles for sale, often times through Cars.com, and I price them using KBB.com. When I find one that I know is in more demand, with a motivated seller at or below private party pricing, I go look at it and sometimes buy it. Then I drive it for a while for free, and sell it when I’m ready, for more than I bought it for. Then I roll that money into the next vehicle, or sometimes keep a bit for myself.
According to the article, the steps to flipping a car are:
- Screen used car ads for in-demand cars priced below market.
- Make a cash offer for below the asking price.
- Make necessary repairs.
- Get the car cleaned and detailed.
- Have the title free and clear, ready to hand to the buyer.
- Show the vehicle in a safe location.
- Don’t negotiate — you don’t need to sell the vehicle, so wait for your price.
- Accept only cash.
This doesn’t interest me — I’m not a car guy — but if you’re mechanically inclined, this could be a great way to make some extra cash.
[No Limits Ladies: More Money Mondays: Flipping Cars]
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Every day you have a car, it loses value, making cars are the worst investments we all have to make. I’d say flipping cars is just about the riskiest thing I’ve heard of for trying to make a buck. I would bet half the time you buy “in demand” cars, you’d have trouble selling them above what you paid.
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honestly. i bought an “in demand” subaru wrx for cash traded it straight across for a car i sold for 14,500 cash made 8000 in 2 weeks. thing is……you MUST know values and be mechanically inclined,,VERY, other than that youre wasting your time lol..
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Every business is risky, if it was that easy everybody would do it. Don’t listen to the people that are NOT in he business and listen to the successful ones. Blackberry was on top 3 years ago and investing on them was a no brainer, but them the iPhone came out. I flip cars and make a really good living. I quit my $26/hour job and started flipping cars full time last summer and make more $$$ now. Just to your research and knew your market in your city.
I only sell 4 door imports, about 10 years old and make about $1200 on each car. I buy my cars from locals (kijiji) and buy the cars that people need gone ASAP.
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Hello cris and thanks for the info.I just need to know how many cars can you sell before getting in trouble with icbc?
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When buying and selling vehicles for profit, is it necessary that I get temp. plates and pay all of the transfer and registration fees if I plan on flipping the car as quickly as possible?
Any info would help. Thanks.
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Could not be more wrong.
1) Cars do not always depreciate. They can become collectors items and, if maintained properly, They appreciate way more than they were initially worth. Yes the immediate depreciation is great but you’ve made quite the radical generalization when saying they all lose value.
2) Yes it is a risky investment IF you don’t know what you’re doing. All investments require due diligence. If you just pick and choose at random which car you think will make money, then you are taking a HUGE risk, but you wouldn’t go doing that with any other investment would you?
3) It’s extremely rare for a new car to be in such demand that someone would pay more than the car was purchased for, that’s because new cars are NOT in demand. It’s basic Supply and Demand. Econ 101! Come on man! High demand cars are usually
4) Turning around a car does not mean you find a car at below market value and directly sell it at market value or higher the next day. In very rare cases will you find this but it probably means the car is stolen. Usually when turning around cars you find one that has something wrong with it, fix it yourself to cut repair costs, and sell it in perfect working order, but with a salvage title most of the time. You can make a decent amount of return in a short amount of time here, which I guess goes against the title of this website, but hey! It’s still making money. Most of the cars I’ve ever turned around can be sold at a 20%-35% return on investment; all bought post-accident and with salvage titles on them. You’d be surprised at how little a difference it makes to many buyers. The car I drive now is a salvage title rebuild. Runs with less issues than my buddy’s car who has the same model and year, but bought brand new.
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This is the biggest bunch of crap I ever read. This guy probably tried to flip a car and failed miserably. Every car I’ve bought with the intention to sell for profit has made me profit.
You have to know what you’re doing, what to look for, how to value the car, how to check vehicle history (that’s easy Carfax), and how to make offers and persuade the seller to take your offer.
In fact, most of the time I buy the car on Craigslist, then go and sell it for more right on Craigslist again. I just sold a Sentra I bought for $1500 and got $2200 for it a week later. It took me less than 3 days from time of listing to sell it.
The trick is to only buy and sell cars you would be comfortable letting your wife, daughter, or mother drive because Karma is a bitch and you don’t want to screw anyone over.
The other secret is to NEVER EVER buy a car to flip from someone who is already flipping. Trust me you don’t want their sloppy seconds. There’s a very strong chance they don’t have the same ethics as you and could care less about the condition of the car and only cares about profit.
Look, profit is the name of the game, but I don’t want to sell a piece of shit to someone who doesn’t know any better. I’ve had it happen to me a long time ago and I felt horrible.
If you click my name, it should take you to a channel I put together to help people who want to learn how to flip cars. One of the videos shows how to EASILY spot a car flipper so you don’t buy the car from them and get their sloppy seconds. It’s real simple, but I bet you didn’t know this little trick to knowing.
Go check it out and don’t pay attention to Matt because he doesn’t know what he’s talking about.
You CAN profit from buying and selling cars online and on craigslist. You just need to know what you’re doing
I earn a profit every time without fail.
- Jay
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This guy Matt at the top doesnt know what he’s talking about.
Every car I’ve ever flipped I’ve profited from. You just gotta know what you’re doing.
Here’s a couple of tips:
1. Don’t ever buy a car to flip that you wouldn’t feel comfortable letting your wife, daughter, or mother drive.
2. Always always always get the VIN # so you can get a vehicle history report BEFORE you go look at the car. This way you won’t be flying blind and you can even save yourself the ride. This is the best $45 you’ll ever spend.
3. Don’t buy a car you plan on selling for profit from someone else who is doing the same thing. lol You don’t want their sloppy 2nds and there is a great chance they don’t follow tip #1. Always buy from a real owner. It’s easy to tell the difference if you know how. If you’re not sure click on my name. I posted a video showing how to spot a car flipper every time within seconds.
You can make money flipping cars. I don’t do it full time, but my goal is to move 1 or 2 cars a month. It’s cash and it pays bills.
Sell one car a month and you can end up earning $5K – 10K extra cash IN YOUR POCKET per year. And this is being conservative.
Good luck!!
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Jay, I here what you say and think you are right. I have a question about the flipping process. Each state is prob diff with respect to buying and selling, however, can you buy a car and not pay sales tax and then resell it? Is there any way to temporarily insure it so your prospective buyer can drive an insured vehicle? Just curious. Here in Mass, it seems as if this is hard to do without a used car dealers license, and that kind of license requires a physical business location with signage, etc. Is it different where you are located? Thanks for your comments.
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Eric
If you don’t want to deal with the hassle of getting a dealer’s license, the only 2 options are as follows:
1. You transfer the title in your name and pay sales tax. Pay to get it insured and pay the registration fee as well – thus eating into your profits a lot more.
2. You don’t sign the buyer portion of the title, don’t go to DMV, but you just sell it that way. Much faster, but much riskier. This is known as title jumping. As far as the insurance goes, this is much riskier as you won’t have any insurance on the car. Most people, whether they’ll admit it or not, do it this way.
Obviously do what you feel most comfortable with. The dealer’s license is the safest, but unless you’re moving 2 cars or more per month, it will suck up all your profits making it a pointless endeavor.
#1 is also safer too, but I don’t know how long it takes for Mass DMV to send title issued in your name to you. In NY it’s 6 – 8 weeks which is a very long time to sit on a car you’re only making $500 – $1000 profit on.
Hope this helps,
Jay
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I dont agree with you, simply because I have been doing it for over a year now, I have been able to support my family and taken 3 vacations in a year, I’m my own boss, its true there is better seasons than others but, FOR SURE it is very profitable, maybe not for everybody, i’m not even a mechanic but I know how to deal with people and I learn everyday.
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TITLE JUMPING IS FRAUD, PLAIN AND SIMPLE!
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Please show how it’s fraud, do you even know what fraud is? It may be illegal because the Government doesn’t like getting cut out of the share they feel they are entitled too for your hard work, but fraud it isn’t.
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I have to agree with the previous Matt, flipping cars is incredibly risky, but with that said I do beleive that you can make money off of it if you know what you’re doing. Although it’s risky I don’t think it’s much more risky than flipping houses. It would definitely take care and planning.
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nice site though, I will have to check it out further
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Whats the risk? I have made thousands of dollars because I know how to buy below market. I have no car payment- I drive for free. Also, as a side note- I am not mechanically inclined- I do not look for cars to fix up- I look for something I can turn as is, or put very little into. The Discovery I have right now I got for $1100 less than I can sell it for. I put $100 into having the radiator rodded thats it. I have never had trouble selling a vehicle. I have made money every time.
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I had no idea this practice had a name. I’ve done this in the past but found, for myself, it wasn’t worth the hard work to get the cars back into prime shape. Maybe I was buying cars that were too far gone. Maybe I shouldn’t have been trying to make them look like they just came off the showroom floor.
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You are right about that. You never pull that money back out of a vehicle for things like spiffy wheels stereos, etc.
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I ran an ad in the paper once, “buy yer old car” or such in the auto section.
Over the next few months, I bought cars really really cheap from people, learning as I went.
Some I broke even on, some I lost money on, some I made big money.
I think my best case was a Toyota I paid $75 bucks for, gave $50 to a mechanic who actually did a bit of a miravle with a valve part in the head, sold to some Mexicans at 3 am a couple weeks later for $1200. Cash.
That was nice.
But the local paper decided I was a business and jacked my ad rates up about 1000% and I couldn’t afford it anymore.
A friend who delivered pizzas would watch the driveways for cars which didn’t move, had flat tires, etc, and come by later and ask them if they wanted to sell the car. He ended up going full time into the business.
You can make some money, especially if you know how to work on cars (I am so-so, no mechanic for sure).
The title transfer fees can eat you up tho. Might wanna find a local car dealer and give them a cut each time, say $50 or so.
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You don’t have to pay title fees! Just leave the buyers name open on the recently purchased cars title then it’s ready for the person you sell it to. And your name is never involved if the car breaks down on the buyer.
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Is this legal? I did it today. Then the buyer called me and wanted his money back. He was a dealer. He threatened to call the police because of Title skipping.
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You need a Bill of Sale in this case, which will protect you (the seller) and denote the car as being sold “as-is”. After signatures are made and cash is handed over, the buyer is now responsible for the car, period.
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Her article is a long explanation of a single example of arbitrage, and I’d wonder about getting investment advice involving arbitrage from someone who doesn’t know what arbitrage is.
Successful arbitrageurs have an eye for things that are liquid and have different prices in different markets, whether they’re cars, houses, Yen, or pork belly futures. That’s a hard talent to pick up; if it wasn’t, there’d be more arbitrageurs, and more arbitrageurs dealing with a commodity tends correct the imbalance the arbitrage takes advantage of.
Cars seem like a risky target for arbitrage, not so much because of market conditions and depreciation, but because there’s a large industry based around arbitrage of cars: used car dealers. And like any other industry, they establish entrance barriers, like dealer registration. Ontario, for instance, has different regulations for private and dealer sales; what’s the difference between buying cars privately to immediately sell them privately, and a dealer simply pretending to be a private seller?
(Alternatively, why go to all the trouble of looking for private-sale market imbalances, when you can just register as a dealer, buy at dealer auctions, and let your increased return and turnover pay for the dealer registration?)
Lastly, it’s a bit odd that she thinks she has cars for free. Any car, paid off, will be as “free” as hers, except that a car that’s simply paid off won’t involve the expenses and time commitment that her “free” car involves. I’m not sure one should take investment advice from someone who forgets to account for capital, transaction costs, and opportunity cost in her advice.
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I’ve never flipped a car, but my best flip (% wise) was a bread maker.
My wife and I bought it for $1 at a thrift store. I fixed it (very minor soldering job) , and we used it for about a month. Then we discovered that we didn’t really like bread machine bread, and sold it for $20.
I wanted to go buy another to flip, but my wife didn’t want junk arround our studio apartment.
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Rich that’s a fancy word you’ve got there. Too bad the girl never said she had the car for free, neither did she break it down to exact costs- as that all varies depending on state and person. The point is it can be done, it’s not rocket science, and I’ll take my $500-$2000 a month over your five dollar word anyday. Those who don’t think it can be done need to get out of the way of those of us who are doing it.
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Here in Washington you need to beware of how often you do it:
“Curbstoning is buying, selling or otherwise participating in five or more vehicle transactions over a 12-month period without a vehicle-dealer license. Violations can lead to cease-and-desist orders and fines of up to $1,000 per violation. Hard-core curbstoners are subject to gross-misdemeanor charges punishable by up to a year in jail and a $5,000 fine; repeat offenders can be charged with a felony. More than 20 states have curbstoning laws.”
So unless you’re making $10K a pop four times a year, you’re at best looking to put a little money in your pocket with the chance of getting burned.
I’m 39 and have owned about 50 cars, trucks and motorcycles in my life. I’ve made money on about half a dozen (not trying to, mind). It’s very risky in that cars are complex and lots can be wrong, and it will depend on your ethics sometimes…do you fix something (or tell the person buying it needs fixing) or do you remain silent and shrug when asked?
Earlier this year I was given a Jaguar XJ6. I figured about $1000 and 20 hours of labor would fix the head gasket (I’m a decent mechanic.) Head was cracked, other things were wrong. I had $1800 into the car in machining and parts–and sold it for $1800. I enjoyed getting it running again but had I spent that time billing at $100 per I would be $4000 ahead.
I imagine the easiest money comes at the bottom of the market in the “everyday transportation” category, but that’s also the least amount of profit. Yeah, you might make double or triple your money, but if we’re talking about $500 or $1000, that’s potentially a lot of work for not a lot of moolah. And if something serious is wrong, even an alternator on certain makes, you can end up underwater very quickly.
Curbstoning is illegal because dealers, even the scuzziest, actually have some regulations they must abide by. The car may have to have current tabs or be licensable, it may have to be safe, they generally have to take the car back within a certain window if it turns out to be grossly defective, etc.
Though it is really common to simply not transfer the title on cars you’re flipping, I believe that is also illegal, and sure to tip off the state…they get a report of sale even if you don’t transfer the title. Do enough, and they become curious why you aren’t transferring the titles on the cars you’re buying. Here in Washington, they’ll be even more curious why you aren’t paying sales tax on every car you buy, at almost 9%.
If it’s legal in your state and you’re savvy, go for it. But just like real estate, it’s not a place for the casual or uneducated. The guy who got his car fixed for $50 by a mechanic was handed a gift, a gift he will not get again if the mechanic knows he’s simply flipping the car. (And I wonder why the nationality of the buyers was important, but quien sabe?)
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Car flipping might be illegal, and I personally have only flipped cars I bought and decided to sell but, how is it going to raise the eyebrows of the state, and how the hell do they know what you are selling if you don’t title it in your name? I’ll answer that, they won’t so your argument is invalid. In fact in my state TN I just checked tonight and I can sell 5 cars a year without a dealers license. They would need to catch my selling 6 before they could even say anything. Now as to not titling it before I sell resell it, well that is a different matter they could but most likely wouldn’t act on. An again, first they would have to figure out I was actually flipping cars, and what cars I flipped. Not likely they would.
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It’s not a matter of “don’t think it can be done” so much as “don’t think it’s a good risk for most people.”
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Hmm…had heard of flipping houses, but never flipping cars. Interesting, but as I continued reading, any thoughts of flipping a car for money were erased. Not really sure I want to get into the used car market anyway. Oh, nice site by the way.
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I wanted to echo Roger’s sentiments regarding the number of cars you can “flip”. There’s a similar regulation in the State of Oregon as well. On the other hand, I’m not sure that DMV’s requirements are all that tough, so just go get the license.
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prlinkbiz, the part where she talks about driving for free is quoted *right in this post*.
The basic problem is this: Step #1, “find things trading below market price”, is not specific to cars, and is difficult. But anyone *capable* of finding enough things that trade below market price that are liquid enough to flip doesn’t need to bother reading the subsequent steps. So what kind of advice is this?
“Buy low, sell high”. Well, gee, thanks.
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Hey, wait a minute. prlinkbiz talks about the author of the linked article in the third person, but curiously enough she shares the same username as the author of the article.
Why are you pretending that you’re not defending your own article, prlinkbiz?
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Well, in California, you better get that car for at least 8% under market rate – you need to pay sales tax and title fees when you buy the vehicle and then next buyer does again. That is, if you actually do want “title free and clear”.
Maybe in other states you don’t need to pay sales tax if you resell within X months, I don’t know, but not in CA.
Also, one bad car will wipe out your profit for a year with either repairs and not being able to sell. You better be 100% accurate.
Do something that adds value to the community – buying a depreciating asset below market rate and finding a sucker to buy it above doesn’t seem like the ticket.
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I stumbled upon this page and just had to comment based on the erroneous information I’m reading here…
First of all:
1) Buying and selling cars for profit is NOT an “incredibly risky” way to make money. In the grand scale of life and even business risks, this type of business is almost a no brainer once you have the foundation because there is so much built-in demand for used cars….and always will be!
2) As far as having to pay sales tax on a car that you bought in California with the intentions of reselling it… Just know that there are ways around all these things. All the clerks at the DMV want is that every ‘T’ is crossed and every ‘i’ is dotted and every line filled out. They just do NOT have the time and resources to check all these things out, besides, its rarely an issue because your car will be sold (flipped) before the paperwork ever gets to the DMV anyway.
3) Someone said something about how its not worthwhile to do this. What the?! Hmmm, please explain how making a clean $500.00, $1000.00 or $2000.00 cash profit from spending anywhere from 2 to 5 hours isn’t worth doing?!! Please, enquiring minds want to know?
4) Curbstoning is NOT the big scary deal someone said it is IF you are low key about it (ie: you don’t make your front yard look like a used car lot) and you are honest with your customers, but you can always get your car dealers license later if you choose to.
I have no monetary interest in this, but I learned everything about this from reading and applying what I learned from this guys book:
http://www.buy-and-sell-cars-for-profit.com/
Believe me guys, it is a VERY profitable way to make some very good money provided you stop wringing your hands ANAL-yzing and worrying about a bunch of silly things.
Sorry to come off as such a smart a&% but some of those comments made just had to be responded to!
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Flipping cars is a very risky business due to many unlicensed and unscrupulous car “jockeys” who are running rampant on the internet and in local newspapers. They are not being regulated and the local authorities rarely check them out. One can make a lot of money buying and selling cars, but they must know what they are doing and must insist on full disclosure. As a car dealer, I am offered at least one car per week from a consumer who was hustled from a “curbstoner” who sold them a car from the newspaper or internet. If a seller only will sell for cash and will not accept a bank check stay away from them. Any legitimate seller will accept a bank check. If a car deal seems too good to be true, stay away! You only get what you pay for. Questions?? Call Vehicles Inc at 610-799-6000 to learn how to buy and sell cars and trucks legally without legal exposure and at the same time treat customers fairly so they refer you to friends.
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For more info go to:
http://www.vehiclesinc.com
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The term “flipping cars” merely describes the process where a person buys a car with the intention of quickly selling it for a profit instead of keeping it for themselves. There are people that flip (sell) cars for a profit and there are people that flip houses for a profit and millions of other items. Buying and selling STUFF is what makes the world go around and there is NOTHING morally or ethically wrong with flipping (selling) anything….and that includes curbstoning. The only thing that makes selling ANYTHING wrong is when some sleazy scumbag lies to someone about the condition of whatever it is they are selling in order to make a quick buck.
If you think for one second that just because someone has a car dealers license, that they are somehow magically transformed into some angel then you will be very disappointed. True, they have more to lose than the person without the car dealers license (because of the time and expense it took them to get their car dealers license) but we have all been exposed to sleazy lying licensed car dealers.
There are honest people that curbstone and there are dishonest people that curbstone, just as there are honest and dishonest car dealers.
Unfortuneately there are liars and cheats out there in ALL walks of life….with and without licenses. Just look at many of our politicians!
Its a buyers beware world folks. Always has and always will be and a piece of paper rarely makes a dishonest person become honest.
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LOL I haven’t checked back here for a bit – Rich, I wasn’t pretending anything! John- thank you for ‘getting it’. I have since sold the vehicle in the article (paid $5300 sold it for $6200) and rolled $6k back into a 1999 Passat to resell for approx. $7K. I do it to not have a car payment, tie up my cash and grow it a little bit. That money becomes the goose that lays golden eggs for me! lol AZ is a great state to buy and sell in.
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Rolling cars is a good business if you know the vehicles you sell. I personally deal with Land Rovers and ocasionally BMW’s, but I know these vehicles in and out and can perform almost any fix on them for a fraction of the cost of a shop. Now here is the important part, if you don’t know cars, don’t know the certain cars you deal with or are a scammer then don’t flip cars. I deal with higher end newer Rovers and do very! well with it, I am in the process of getting my dealer licence but I never want to be a “Car Salesman” I am more of a speacialist of the vehicles I deal with and I have a major passion for Rovers. If you shop right and know what you are looking at then you can make a very nice living and be a good, honest salesman. I follow up with every person I sell a rover to and make sure they are happy with the car and also offer any help and tech support I can for any future problems it may have. If you do it right and don’t roll a ton of cars a year then its all good but if you are greedy then it will catch up with you. So advise…don’t deal with cars unless you know what you are doing, AND BE HONEST!! I make more doing this than I do at my regular job, but its more of a passion for Land Rovers than it is a greedy business. I had a guy fly 1000 miles to come buy one of my Rovers because I take the time to make sure they are quality. Nice site and good luck in the biz.
God Bless
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I wish you would have left an email or site link- I also love Rovers! I just sold a Discovery and have looked at several Range Rovers- love them! Shoot me an email if you get this, I’d like to keep in touch with you!
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prlinkbiz,
I can’t figure out how to email you – How do you get funding to flip the car if you don’t have a couple thousand laying around? Just a used-auto loan with a bunch of interest? Also, I’ve found a car that would be perfect to flip and it’s a BMW so I wouldn’t mind driving it around for a while either, but I don’t have the cash to go get it. Help!
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If you don’t have the cash on hand, OPM baby! Do you have anyone you might be able to borrow the cash from and give it back to them plus % once you sell the vehicle? You might be surprised you would be willing to partner with you if you can show them that you can make them some money. Depending on how fast you move, you can keep rolling that money into the next deals until you have a nice little lump of cash for yourself. I never took a car loan, although that may be an option too.
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Ok, next question. What’s OPM? lol.
So many acronyms, so little time
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Nice site, great info.. I assume she meant
OPM – Other People’s Money
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Wow!!
nice to find others like me that love to find great deals on cars and sell them for a profit.
i was buying and selling 88-91 honda crx si and hatchbacks..sometimes acura integras as well..i made great money on some,broke even on a couple and really enjoyed doing this for a living.
i plan on getting back nto it and adding a few other cars to the list…i did very well with the honda crx si models..they are getting more and more rare and hard to find in decent shape..hell!! i even sold them with blown engines..always was honest about these cars and still moved them just because of the huge demand o these cars from younger buyers wanting to fix them up for racing or show cars.
i once bought a 91 honda crx si in miami fl for $1500..he wanted $2200….sold it 3 days later for $2800 without doing a thing to the vehicle,just drove it from one location to another and cha ching!!!!
ofcourse i would rather have a dealers license and do it the right way and buy and sell nicer,newer vehicles…but it isn’t easy to do….i work for a labor union in miami florida (seasonal work)collect unemployment in the summer while work is dead…so this is a great way for me to supplement my income…..good luck to you all and i hope whoever does this for extra money “is honest” and makes good money and possibly soe great friends along the way.
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It has a name, all right… it’s called “curbstoning,” and in Oregon, it’s illegal unless you have a DMV license and have posted a bond.
Can someone please differentiate this from “used-car salesman” for me? Thanks.
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Hey John Franken – yes there are ways around that sales tax in CA – you LIE on the bill of sale and say you sold it for far less.
You don’t seem like the kind of person I’d want to buy anything from. You have ethics challenges.
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if there is a name for it and it’s been made illegal in 20 states because uncle sam looses his cut, there must be a profit in it.
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A practical issue (concerning titling and sales tax) is where I live you have to have license plates,tags, and insurance to legally drive a vehicle. I have always assumed it is that way most places.
In order to have all of the above, you have to go to the MVA and pay sales tax/registration. When you buy a car privately, it does not have license plates ( dealer will usually get you temp tags). I forgot to mention you can’t get tags without an inspection. Almost any used vehicle will need some work to pass. Fortunately you can get an inspection for around $50-75. If it fails, you have to get work done then pay again. Most people who seriously want to sell their used vehicle will either make sure it has passed inspection or will allow any potentional buyer to have their own inspection done. After all, The car will not be allowed on the road until it passes.
( All of the above is using the premise of buying a car and “driving it free” for awhile before selling it)
So let’s say you buy a car that needs NO work to pass inspection for $5000. Before you can even drive it yourself, you will pay about $75 for inspection, $140 registration ( partially refundable or transferrable to your next vehicle) and $250 sales/use tax ( my state actually being on the “low” end at 5%). Then of course insurance. Now you will be over $500 in fees and expenses before YOU can even get the car on the road. If you sell at a $1000 markup- there goes half the profit. When you sell, your buyer will have to go through the same- and depending on the time period you will probably have to get another inspection,etc.
I have also never known anyone who bought or sold a car CASH on the spot. Normal procedure is check ( though I might understand the going to to bank to make sure its good part) with a notarized Bill of Sale.
I have a friend who tried this a few times with cars from abandoned property auctions. He did OK, but not as well as he hoped ( he went to school for autmotive mechanics and is also business savvy). He also bought at very steep discounts- like buying a $5000 car at acution for $2000- and never relied on any of these deals as his primary personal vehicle.
Also ( and his experience illustrated this as well) the part about “not discounting your price” and not being desperate to sell,etc. You have a time vaue of money and at some point even deals that look great you may have to take less just to get your money back and free it up for other deal. Very few private party used car buyers are paying asking price.
Though I guess some of my presumptions could be wrong- this tactic involves taking advantage of stupid people and driving illegally( or is just specific to a certain state,etc).
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Hey Numnutz,
“Ethics” about what to put for the amount on the Bill Of Sale you say? Hmmm, well that brings up a whole lot of philosophical issues about whether the government is better at spending your money or the individual. Me thinks the individual, but what do I know.
Actually though, if you are buying and selling cars for profit then it would be up to the BUYER to decide what they want to put on the Bill Of Sale and not the seller.
As long as the seller is being COMPLETELY HONEST about the condition of the car they are selling then what do you care what the heck the buyer puts for the amount on the Bill Of Sale?
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Greg C said: “I have also never known anyone who bought or sold a car CASH on the spot. Normal procedure is check ( though I might understand the going to to bank to make sure its good part) with a notarized Bill of Sale.”
Greg C, it sounds like you live in a bizarro world populated by anal retentive accountants.
My experience (and I buy and sell cars for profit — hundreds!) is that it is up to the seller to dictate to the buyer how they want to be paid. If you want a check and the problems associated with that, then accept a check. Me, I prefer to be paid in cash so its done and over with and have worked that way for probably 95% of my car deals.
I just came across this blog today and it seems that the posts on this page are mostly (not all though) from two kinds of people…
- Paranoid types afraid of their own shadow and terrified to step out and risk a few hundred dollars.
Or….
- Overly analytical negative types that have zero experience with buying and selling cars for profit, but are more than willing to give their (ahem) “educated and expert” opinion on how to buy and sell cars for profit.
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I am doing that exact thing. Flipping cars … I didn’t know other people were doing it too … I thought I came up with the name “car flipping” lol …. I’m a fan of the house flipping shows …. I have 3 or 4 cars in line for me to put a little money into, and resell …. I can’t wait. Any kind of flip is risky, but you’ll never know until you try it. Most likely it will turn out great!
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I began flipping cars in college for extra cash. I go to auctions, buy a car w/ a decent body and that runs decently for no more than $500. I take it home, detail it…and sell it for $1000-$1200 a pop. It is incredibly fun and easy…we only had one that needed major mechanical work. Once the car was fixed it would have been worth $2000 or so but we didn’t have the time, interest, or expertise to fix it so for us…a trade was a natural next step. We actually ended up trading it to a mechanic for his clunker. Then we sold his for $1000…lol.
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I THINK ITS A GREAT IDEA!HOW DO U AVOID THE FEES FOR TAGS AND REGISTRATION IF U WANT TO SIT THE CAR SOMEPLACE TO SELL?
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Most auto dealerships in the world can trace their orgins back to “flipping” cars. I should have my first deal done any day. It would be great to link up with others doing this and share stories/ideas.
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I have done this with some success. Completely legally. I like cars in the 5-6K range, and oddly enough I buy from dealers. My luck has been with high volume items. Dealers will sometimes unload their trade ins cheap. Why not, they took the trade and a guy paid sticker price for a new one. Best deal to date was a prestine 98 F150 I bought for 6200. After tax title it was 6900. I sold it in 2 days for 8700.
Trade in value at time was 6000, KBB low retail was 8500 and high was 10,500.
I got a good deal and the guy I sold it to got a good deal.
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Well this is strange. I have a quick question about stuff in Oregon. Does anyone know like laws and stuff regarding car flipping? I’m 17 and have been doin this a little in the summers. Its a gr8 idea. I am not mechanically inclined i just buy cars for like 1 grand or so, usually i look for quick fixes, (cracked windows, very dirty, etc.) and pay a guy i always go to do fix it. I told him whats up, and he gives me a good deal since I always come back. Its a great idea, but i was wondering if I’m breakin any rules or whatever?? help is cool thx.
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I live in California and am pretty car savy. I would like to start “flipping cars” regulary. Is there a legal limit in california as to the number I can sell with out a liceince? I feel like I have to register the cars in my name and get them insured, just in case a potential buyer has an accident….
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ADUBSIZZLE:
What law could you possibly be breaking? All you’re doing is selling cars that you legally own. Keep up the good work.
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Ron
Check with the California DOT or do a google search on California Auto Dealers Licensing. You will find everything you need to know. That’s how I learned about Texas.
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If you would really like to learn about the car biz, take a job selling them. Dealers will give anyone a shot. A few months of that will let you know if you have the guts for it. The best part is free training while getting paid! I made 30,000 my first year, last year I made 85,000. That takes years of repeat customers, not bad for a college drop out? All you need is a few months to understand the basics. What’s Hot – What’s Not. Where, When, and How! If you are living week to week, do not try this. If you can lose a couple of grand and they won’t shut your lights off. Give it a shot.
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Regarding what Steve above this said:
“If you would really like to learn about the car biz, take a job selling them.”
Actually, working at a used car lot is not a bad idea because you will definetely learn how to sell, which would serve you well for pretty much anything else you do in life, but buying and selling cars for profit from home requires sales techniques that are of a much more subtle nature. I think someone else mentioned this before on this page, but I learned tons about how to start a used car business from home from this guys ebooks: http://www.buy-and-sell-cars-for-profit.com/
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[...] in house flipping. I did fine one poignant blog post about car flipping at Get Rich Slowly. This article generated a ton of discussion comments. The comments seemed to go back and forth [...]
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Hi,
My name is Greg, and I am a licensed dealer in LA. I’m starting an online community of people involved, or interested in buying, and reselling cars. Come to my website, and ask me a question. I’ll do my best to answer it, write about it, and post it on my website.
http://the-car-flippers-companion.com/
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What is the law in California as to how many cars you can own or sell in a year?
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Hi,
I’ve been selling cars two cars a year in Arkansas, the legal limit without a license, for several years now but I’m moving to Texas and I can’t find the legal limit there. I’ve looked looked through licensing documentation and dmv websites but I can’t find it. Can someone please help? Thanks.
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