Flipping cars for fun and profit

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:

  1. Screen used car ads for in-demand cars priced below market.
  2. Make a cash offer for below the asking price.
  3. Make necessary repairs.
  4. Get the car cleaned and detailed.
  5. Have the title free and clear, ready to hand to the buyer.
  6. Show the vehicle in a safe location.
  7. Don't negotiate — you don't need to sell the vehicle, so wait for your price.
  8. 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]
More about...Side Hustles, Transportation

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Matt Haughey
Matt Haughey
13 years ago

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.

jon doe
jon doe
8 years ago
Reply to  Matt Haughey

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..

cris
cris
8 years ago
Reply to  Matt Haughey

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… Read more »

manal
manal
8 years ago
Reply to  cris

Hello cris and thanks for the info.I just need to know how many cars can you sell before getting in trouble with icbc?

William
William
7 years ago
Reply to  cris

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.

pari
pari
5 years ago
Reply to  cris

Hello,I liked your story and willing to do it but i have no idea how to do it.
Please let me know if I need to put it under my name ,Get insurance ,pay taxes?
As you know by adding all these expenses ,markup would not be as high.
Please let me know?
thank you in advance

jackrabbitnw
jackrabbitnw
7 years ago
Reply to  Matt Haughey

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… Read more »

Jay
Jay
7 years ago
Reply to  Matt Haughey

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… Read more »

Martin
Martin
6 years ago
Reply to  Jay

Hi Jay.
I just read your response.
I am interested in starting to flip cars, I am not that afraid of not getting much money, but my concern is: Do I have to register for that , get a license, pay taxes or somethin llike that?
Thank you Jay
Martin

Jay
Jay
7 years ago
Reply to  Matt Haughey

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… Read more »

eric
eric
7 years ago
Reply to  Jay

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… Read more »

Jay
Jay
7 years ago
Reply to  eric

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… Read more »

Jhon
Jhon
7 years ago
Reply to  Matt Haughey

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.

wb
wb
7 years ago
Reply to  Jhon

TITLE JUMPING IS FRAUD, PLAIN AND SIMPLE!

Wade
Wade
7 years ago
Reply to  wb

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.

Jay D
Jay D
7 years ago
Reply to  wb

IT’S NOT FRAUD!! hahahaha

Felt like yelling back in all caps – lol

Anyways, if it’s such fraud, how come you don’t hear about people being thrown in prison for buying and selling used cars?

Maybe, if they sell more than the state allows per year, they may get a fine – if they get caught.

I think the term FRAUD is a bit blown out of proportion.

Anyways, if you want to see how I legally made $1575 flipping a car I didn’t even own, click on my name to see the youtube video I made 🙂

S Davis
S Davis
5 years ago
Reply to  wb

It is fraud because it is implying that the vehicle is being purchased from the previous owner instead of you. That is clearly misrepresenting the facts of the sale for a profit.

fraud
1.
deceit, trickery, sharp practice, or breach of confidence, perpetrated for profit or to gain some unfair or dishonest advantage.

Bredman
Bredman
6 years ago
Reply to  Matt Haughey

This should be a lesson to never sell a car to an accountant. Wait for the right customer who falls in love with the car your selling; they will pay close to your asking price. This strategy works for me.

Johnny
Johnny
6 years ago
Reply to  Matt Haughey

Here are the facts about flipping cars. It pays pretty well if you A) Know what to look for. B) Know how to negotiate based on the cars “street value” which is always lower then the KBB value. And C) are mechanically inclined. I have never, ever, ever, lost money on a car. Worst case was to get back exactly what I had into it. I own a restoration/ Body shop in AZ. I have a few clients I restore cars for. In between their cars I buy and sell my own. Mostly 80’s European cars. I generally pick them… Read more »

matt
matt
5 years ago
Reply to  Matt Haughey

I’ve bought and sold 14 cars. I lost on one and made money on the other 13. the money i lost on the one was less than i made on each of the others. it’s risky but if you know what you’re doing there is definitely money to be made.

Matt
Matt
13 years ago

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.

~Dawn
~Dawn
13 years ago

nice site though, I will have to check it out further

prlinkbiz
prlinkbiz
13 years ago

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.

Blogeois
Blogeois
13 years ago

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.

prlinkbiz
prlinkbiz
13 years ago

You are right about that. You never pull that money back out of a vehicle for things like spiffy wheels stereos, etc.

todd yarling
todd yarling
13 years ago

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.… Read more »

Camaro660hp
Camaro660hp
8 years ago
Reply to  todd yarling

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.

Peter
Peter
8 years ago
Reply to  Camaro660hp

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.

ryland20
ryland20
8 years ago
Reply to  Peter

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.

rich
rich
13 years ago

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… Read more »

Michael M
Michael M
13 years ago

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. 🙂

prlinkbiz
prlinkbiz
13 years ago

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.

Roger
Roger
13 years ago

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… Read more »

Wade
Wade
7 years ago
Reply to  Roger

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… Read more »

Tyr
Tyr
2 years ago
Reply to  Roger

When a government threatens to throw you in jail for running a profitable business you should know there’s big problems. They’re nothing but a mafia.

Emily H.
Emily H.
13 years ago

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.”

Phead
Phead
13 years ago

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.

Dave
Dave
13 years ago

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.

rich
rich
13 years ago

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.

rich
rich
13 years ago

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?

pebird
pebird
13 years ago

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… Read more »

John Franken
John Franken
13 years ago

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… Read more »

Vehicles Inc
Vehicles Inc
13 years ago

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… Read more »

Michael Sanders
Michael Sanders
6 years ago
Reply to  Vehicles Inc

Yes! By all means accept bank checks from your buyers, because the money is already there. But, do not ever accept personal checks unless you can hold onto the car until the check clears your bank. Otherwise, the buyer could cancel the check. You might get lucky to get your money or the car back. But, the police aren’t interested in being free collection agents for car dealerships. The courts are seldom helpful, either (& usually more of a problem than they’re worth).

Vehicles Inc
Vehicles Inc
13 years ago

For more info go to:

http://www.vehiclesinc.com

Mark
Mark
6 years ago
Reply to  Vehicles Inc

Here is my question. I just want to do 1 or 2 cars per year. I love classic cars and want to purchase 90% done cars and finish them out and resell. But Kentucky (where I live) requires signage and one use facility unless divided by a wall, etc.

I just want to do this out of my garage. Not sure what to do next. I know all the prices of licenses and insurance.

Help!
Mark

John Franken
John Franken
13 years ago

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… Read more »

prlinkbiz
prlinkbiz
13 years ago

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.

Jabosco
Jabosco
13 years ago

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… Read more »

prlinkbiz
prlinkbiz
13 years ago

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!

Mark
Mark
13 years ago

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!

prlinkbiz
prlinkbiz
13 years ago

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.

Mark
Mark
13 years ago

Ok, next question. What’s OPM? lol.

So many acronyms, so little time 😉

Big Jay
Big Jay
13 years ago

Nice site, great info.. I assume she meant
OPM – Other People’s Money

marc dolphin
marc dolphin
13 years ago

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… Read more »

numnutz
numnutz
13 years ago

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.

numnutz
numnutz
13 years ago

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.

port454
port454
13 years ago

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.

Greg C
Greg C
13 years ago

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… Read more »

George
George
13 years ago

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… Read more »

George
George
13 years ago

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… Read more »

Josh
Josh
13 years ago

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!

shayeshaye
shayeshaye
13 years ago

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… Read more »

WILLIAM
WILLIAM
13 years ago

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?

TMECARS
TMECARS
13 years ago

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.

Greg
Greg
6 years ago
Reply to  TMECARS

I just read your blog, and am also getting close to buying my first car and giving it a try. Being a car lover for many years, going to give it a try. Only working part time, and would love to talk with someone also starting out. If not best of luck to you.

Captfubar
Captfubar
13 years ago

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… Read more »

Adubsizzle
Adubsizzle
13 years ago

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… Read more »

ron
ron
13 years ago

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….

TMECARS
TMECARS
13 years ago

ADUBSIZZLE:
What law could you possibly be breaking? All you’re doing is selling cars that you legally own. Keep up the good work.

TMECARS
TMECARS
13 years ago

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.

Steve
Steve
13 years ago

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… Read more »

George
George
12 years ago

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… Read more »

Greg
Greg
12 years ago

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/

Mary
Mary
12 years ago

What is the law in California as to how many cars you can own or sell in a year?

Thomas Ford
Thomas Ford
6 years ago
Reply to  Mary

Flipping motor vehicles in Calif. is illegal. It becomes illegal at the state level when you have several vehicles for sale. You are then in fact operating as a used car dealer which requires you to have a buss. lisence. You also violate state law when you privately sell a vehicle and don’t pay state sales tax (tax evasion).
In Oakland, Ca. it is also illegal to sell cars using public street to advertise cars for sale (for sale signs in the windows, etc.) and to sell them from city streets (Oakland Municipal Code: 12.24.070.b)

Jay
Jay
6 years ago
Reply to  Thomas Ford

In Oakland CA you can privately sell cars on the street with “for sale” signs. Law changed Jan 1 2013. In CA only dealers have to pay a income and sales tax on cars sold, not private party sellers.

I’ve been flipping cars for years with no issues as long as you know the rules and right people.

If you don’t know the rules, it’s only a $500 fine and a slap on the wrist. Be smart and you can make your money. Don’t knock the hustle TF.

Matt
Matt
12 years ago

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.

awild
awild
12 years ago

I’ve profited and thus not paid a penny for my past 4 cars. Drove one for four years. It all depends if you have the eye for these things. I mainly look for killer deals with nearly nothing needed for the car. Find someone hard up on cash and low ball them. IMO flipping cars is a heck of a lot less risky than flipping a house. Car = $1000 and the market for a used car is pretty steady. House = $100k and the market is all over the place and your stuck with a huge liability. Don’t fear… Read more »

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