Car flipping is the art of buying a cheap car, doing some work and reselling it for a profit. This is not a new practice, indeed, many Aussies make a good living flipping cars and if you have adequate knowledge and a keen eye for a bargain, there’s every reason to expect a level of success. At the end of the day, it’s all about profit – buy a car for a bargain knockdown price, do some work and sell it for a great return – the secret is knowing where to buy good vehicles at knockdown prices.
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Car auctions
Source: comctl.rtaf.mi.th
Before the Internet, these auctions were held in huge warehouses, where dealers would meet and bid on repossessed cars and commercial vehicles. When a finance company repossesses a car, they put it into this type of auction to get a quick sale and the asking price can be low. This means spending lots of time on the road, visiting different venues several times a week; be selective in your projects and the best way to work is buy-to-order; a customer puts in an order at an agreed price and you source the car.
Selling
Source: experian.com
If you are car flipping, the car-for-cash websites are perfect for you. All you do is post a few images and give some information and the listing is sent to as many as 1000 auto dealers. If you get a bid that meets your needs, accept, pay the small success fee and the deal is done! You might be thinking, ‘how can I sell my car in Sydney’ well now you know! Forget other ways to sell cars, this is quick, no hassle and the paperwork is handled by the car-for-cash outfit. You can sell as many cars as you wish; some car flippers have up to one dozen projects ongoing at any one time. The smart way is to source cars to order, as you are sure of a sale.
Local garage
Unless you happen to be a jack of all trades, you will need to partner up with a garage that can service and repair cars. Buying damaged cars can be very profitable, especially if you have a good bodywork shop. Crunch the numbers first, to make sure there is a mark-up sufficient to make the project worth the effort. Estimate the cost of the car, add the total cost of work and see if that asking price is feasible. If you think it is, go ahead and acquire the vehicle. Click here for tips when selling a car.
Keeping track of costs
Source: sansoneauto.com
View your car flipping as a business; you will have to pay tax, of course, which means hiring a local accountant. Bookkeeping is essential, either do it yourself or pay a local provider.
If you have an eye for a good deal and are well-versed in cars, there’s every reason to think you will make money flipping used cars. Vehicle registration is part and parcel of the trade, and that can be done online.
