Author Topic: Flipping cars?  (Read 2952 times)

moustacheverte

  • Stubble
  • **
  • Posts: 134
  • Age: 33
  • Location: Canada
Flipping cars?
« on: July 13, 2016, 12:50:34 PM »
Is anyone here flipping cars for a profit?

How did you get started? Is it reasonable to start with 500$? How to tell if the car is a good buy or a rip off if I don't know much about mechanics? Is it even realistic?

I would love to learn, the same way I learnt how to repair and maintain bicycles; but community workshop are harder to come by (non-existant?) for cars and the initial investment is higher (price of the car, parking in the city, parts, tools).

Any advice? Or anyone in Montreal, QC flipping cars and willing to chat?

Metric Mouse

  • Walrus Stache
  • *******
  • Posts: 5299
  • FU @ 22. F.I.R.E before 23
Re: Flipping cars?
« Reply #1 on: July 13, 2016, 01:18:19 PM »
TL;DR.  It's all a question of leverage, I would imagine.

mtn

  • Handlebar Stache
  • *****
  • Posts: 1277
Re: Flipping cars?
« Reply #2 on: July 13, 2016, 01:23:10 PM »
I've thought about it, but its too much effort for me, especially since I don't have the space to do it.

What you want to do is find cars that run well, but look like absolute shit due to never being washed--especially the interior. Then detail the hell out of it, turn it around and sell it for $500-$1500 more after only giving it a bath.

patchyfacialhair

  • Handlebar Stache
  • *****
  • Posts: 1116
  • Age: 29
Re: Flipping cars?
« Reply #3 on: July 13, 2016, 01:30:59 PM »
Not sure how it works in Canada but in some (all?) states in the US of A, you're limited to flipping X amount of cars annually before it is considered a "business." That requires the flipper to do things a little differently, meaning they may have to get commercial insurance, business licenses, or jump through some additional red tape to continue the business of flipping cars. Just keep that in mind as you evaluate your options.

For what it's worth, I know a few people who do this, and they're pretty successful. The best ones get a wholesaler's license in order to get a seat at auto auctions. You can find the best deals at auto auctions.

As far as learning how to fix cars, your local community college may have classes you can take, which can be supplemented with Google and Youtube.

v8rx7guy

  • Handlebar Stache
  • *****
  • Posts: 1332
  • Location: Bellingham, WA
Re: Flipping cars?
« Reply #4 on: July 13, 2016, 02:20:51 PM »
I usually flip one or two cars a year.  You really have to know what to look for.  I usually only do vehicles with mechanical issues, as I am not a bodywork guy and the ones with body damage often have salvage titles which make them difficult to resell.  My most recent was a newer 4x4 Ford Ranger that had a cab fire.  I picked it up for $500 and replaced literally every single part in the interior with the good interior parts from another Ford Ranger which I parted out the rest of the way to get even.  Now that the burned interior truck is back in perfect shape, I'm hoping to get maybe $3000-$4000 for it and I have about $600 total into it... not a bad flip.

Here's a nice one to keep your eyes open for that is pretty common... early 90's Toyota 4Runners with the V6 Engines have terrible headgasket problems.  Often you can find them for $500 or so with a blown headgasket on craigslist.  Since the headgaskets were recalled in the late 90's and the recall doesn't expire, often you can get them fixed for free from Toyota... you can call the dealer with the VIN number to know if it's still due the recall fix.  Even if it's not due to be done for free, you can fix them yourself with the right know-how for a few hundered dollars and turn around and sell them for $3000+ if they are in nice shape.  I've done this twice personally.

I also like to find vehicles that need engines or transmissions and just buy a complete motor or transmission from car-part.com and swap it in.  I've done this with a Toyota MR2, Mazda MX-3 and a Nissan Xterra.  Again, you really have to know what you're doing, but you can definitely make money buying, fixing and reselling vehicles.

patchyfacialhair

  • Handlebar Stache
  • *****
  • Posts: 1116
  • Age: 29
Re: Flipping cars?
« Reply #5 on: July 13, 2016, 03:54:01 PM »
Oh and another thing, try to keep the final price of your cars below $3000, maybe $4000 if you're in a spendy area. You'll have trouble finding buyers for anything above these numbers as most people don't have $3-4000 cash laying around. The last thing you want is to wait for someone to obtain financing, which means you're sitting on the car in the meantime. As v8rx7guy stated, the best deals are the junk $500 cars that need only mechanical work, which only need the cost of parts and your time added in to create that value at the end.

moustacheverte

  • Stubble
  • **
  • Posts: 134
  • Age: 33
  • Location: Canada
Re: Flipping cars?
« Reply #6 on: July 13, 2016, 04:01:02 PM »
Thanks for the tips. I have no equipment, garage, carport, or tools, an engine swap sounds pretty intense...

v8rx7guy

  • Handlebar Stache
  • *****
  • Posts: 1332
  • Location: Bellingham, WA
Re: Flipping cars?
« Reply #7 on: July 13, 2016, 04:04:44 PM »
Thanks for the tips. I have no equipment, garage, carport, or tools, an engine swap sounds pretty intense...

Yeah... hate to say it, but probably not the side hustle for you then.

brute

  • Pencil Stache
  • ****
  • Posts: 691
Re: Flipping cars?
« Reply #8 on: July 13, 2016, 05:07:50 PM »
I flip them at strongman shows. Probably not what you had in mind, but more fun.

snogirl

  • Bristles
  • ***
  • Posts: 367
Re: Flipping cars?
« Reply #9 on: July 14, 2016, 12:54:17 PM »
I flip a lot of smaller stuff and make a good deal of profit.
Free Bicycles are the best, people do not know what they are throwing away.
Add tires, new cables, quick clean and score a quick $125-225 all day long.
If not whole, than parts on ebay.  My latest find netted $600 in parts from a Raleigh 3 speed.
I wish it came with the rod brakes and brooks saddle for the bike would have surpassed a grand.
Otherwise the free building at our Transfer Station always is good for easy cash.
Weathertech floorliners for Subaru?  50 bucks in one day on Craiglist.
My best flip was a free Lawn Tractor donated to me by a rich elderly neighbor.
Hydrostat Scott's in prisitine condition. It needed a new starter ($50 off ebay) and a wire to the stator fixed).
Bought a cheap trailer for $200 and sold the pair $1200.
Even my friends give me stuff now because they don't want to "deal with it". Lol...like finding cash every corner.


moustacheverte

  • Stubble
  • **
  • Posts: 134
  • Age: 33
  • Location: Canada
Re: Flipping cars?
« Reply #10 on: July 14, 2016, 02:48:23 PM »
There is a lot of competition for the free stuff on Craigslist. And in my experience, most of it is junk, or things that will take months to sell. Where do you find your free bikes? Here it's all Canadian Tire and Walmart bikes given for free.

snogirl

  • Bristles
  • ***
  • Posts: 367
Re: Flipping cars?
« Reply #11 on: July 14, 2016, 09:20:45 PM »
I don't take free stuff Craiglist. It all comes from my local transfer stations which is a fancy pants name for the dump. Burlington VT requires recycling so there is a free building at 7 dumping stations. People just park their old bikes, Trek, Diamond Back, Univega, vintage Schwinns, even Harp BMX bikes. I don't take box store bikes & am pretty picky. Mostly vintage furniture, quick resale. My flips don't sit.

Sent from my DROID RAZR HD using Tapatalk


moustacheverte

  • Stubble
  • **
  • Posts: 134
  • Age: 33
  • Location: Canada
Re: Flipping cars?
« Reply #12 on: July 15, 2016, 02:07:57 PM »
That sounds very nice!

Secretly Saving

  • Bristles
  • ***
  • Posts: 418
Re: Flipping cars?
« Reply #13 on: July 16, 2016, 03:53:08 PM »
We flip cars.  But you really do have to know what you're doing and you need the tools and work space to make to happen.