Flipping Cars?

C

CelicaLover

New member
I wasn't really sure where to put this but if someone wants to move it feel free.



Has anyone ever been in the business of flipping cars? You know buying it low and cleaning it up and then selling it for extra money on the return with little invested in it but your time for a really good cleaning?



Do you find it is profitable?



If you have done it what are some of the things to look for in selecting a vehicle to flip.





Thanks in advance all,



Celicalover
 
I do it all the time. I try to find the cheapest, dirtiest car in the year category and buy it as cheap as possible. Then, I recondition it and sell it for $1000 more. Don't get greedy and try to get top dollar. Just make a quick profit. Look for foreign cars and mini vans. They move the quickest. You stick to the north and I'll stay to the south.
 
themightytimmah said:
My friend's dad does it - he sold over 300 of em last year. A good extractor and some level of rotary ability is a must.
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Alot of the rats I buy require a pressure washer to clean the complete interior instead of an extractor. :D
 
bump for an awesome topic



I never really got how you would clean the interior with a pressure washer
 
sneek said:
I never really got how you would clean the interior with a pressure washer
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Very carefully. :LOLOL You should remove the seats when power washing them. When I do carpets, I do 1 section at a time. Right after you hit it with the pressure, vacuume it. It's kinda like a extractor on steroids.
 
One thing to remember is that you might need to buy a dealers license if you sell too many of them in a year. I know Michigan requires it but they wills end you a letter and let you know.
 
Danase said:
One thing to remember is that you might need to buy a dealers license if you sell too many of them in a year. I know Michigan requires it but they wills end you a letter and let you know.
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Can you say "jumped title" ? :secret
 
I was riased with this business (we owned a Cadillac. oldsmobile, GMC Truck store for 25 years).



I dont know about your state, but be careful of the DMV laws. In NY state you have to be a registered dealer to retail cars bought from other people or auctions.



If the previos owner does not sign the title, its called an open title. Then I would have no problems "legally" flipping. I used to ask any customer I was buying a car from that I planned on flipping outside of my store did NOT sign the title.



If you do all that work for only $1000 per car, you are WASTING your time. Dont give away what you work hard to get.
 
I have a customer that does this for a part of his income. Him and I have special "help U sell" rates.. he brings me a junk yard special... I do a quick detail on it... he sells the car quick, I get paid, I also get repeat business, we're both happy.



I must say Im lucky to have this deal going.



(although.. the absolute WORST vehicle Ive seen came from him.. it was not fun at all)
 
jsatek said:
I was riased with this business (we owned a Cadillac. oldsmobile, GMC Truck store for 25 years).





If you do all that work for only $1000 per car, you are WASTING your time. Dont give away what you work hard to get.
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Would you rather recondition a car and make $200 off the detail, or buy a car, detail it and sell it for $1000 profit?? Each one requires the same amount of work/time. Dealers constantly sell new and used cars with much less profit margin that $1000. Why is flipping cars and only making $1000 a WASTE of time?? Especially if you're doing it part time as a hobby.
 
CelicaLover said:
I wasn't really sure where to put this but if someone wants to move it feel free.



Has anyone ever been in the business of flipping cars? You know buying it low and cleaning it up and then selling it for extra money on the return with little invested in it but your time for a really good cleaning?



Do you find it is profitable?



If you have done it what are some of the things to look for in selecting a vehicle to flip.





Thanks in advance all,



Celicalover
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Bringin this one back from the dead :P But people still find it on Google, so I think it's worth it to help them out :)



Anyway - yes, it's profitable.



Here's some things to look for:



1. Flip cars that are in demand. ie: reliable, good gas mileage, in good condition, good commuter car.

2. Don't ever buy a car from a guy who's flipping the car. You don't want their sloppy seconds.

3. Make sure you get the VIN so you can get a carfax report BEFORE you go look at a car. If they don't give it to you, don't even bother going, unless it's real close by and you can get it when you're there.

4. Don't flip a car you wouldn't feel comfortable letting your own mother, wife or daughter drive.

5. Be patient. Don't just get a car for the sake of getting a car to flip. Wait for the right car as long as it takes.



I have more but that's all I can think of now.
 
Jay - Welcome to Autopia and thanks for revisting this old thread! I checked out your You-Tube video on flipping cars and think you give alot of useful info. Especially in respect to requesting a vin and showing that you are an eager buyer. There are a couple points I don't really agree with that you state should be avoided:



[video]http://www.youtube.com/carflippingsecrets[/video]



Yes, Car-Fax is a very valuable tool, but doesn't always show the real story. Especially with older vehicles or in states that don't report service records. I know there is alot of fraud in your area (LI / NW / NJ), so your methods would surely save someone alot of money and time when they are looking for a car.Plus, a car could have suffered a major accident, but didn't get reported to Insurance. Or, it did, but that company didn't report it to the NICB.



You also mention that you shouldn't buy a car with alot of owners? Especially in the case of the car in your video being a 1995 Camry having 7 previous owners. Why? If the vehicle is clean (able) and runs good why should this aspect even matter? The car in this case has been around for 17 years. 7 owners isn't that big of a deal in my opinion. Again, depends on the car and a 1995 Camry with under 200K will sell all day for $1500-$2000 whether it has actual miles or not.



Also, I know in some states that cars that are over 10 years old don't record mileage anyways. For example:



Odometer Mileage Reporting



4 Things to Know about an Odometer Reading - autos.com



Again, for the sake if discussion, just throwing this out there. I'd love to get your input on this.
 
Ive been in the business before. One thing about Carfax. I have been burned by it. I purchased a Discovery with a clean record. Early in its life it was rear ended (clue was excessive rust on frame lately) apparently this was a repair never reported. Out of curiosity started digging and found later dated components.

This really isn't uncommon for higher priced vehicles to have an off the record repair. I know of a few Ferraris/Mecedes paid in cash to keep a clean record.

It's best to have a thorough inspection done. Some owners will go to great extents to keep from losing 20% on a wrecked vehicle especially if out of pocket is less than the loss.



Just my personal experience. I have a decent eye and missed this until removing panels.
 
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