Fixing and flipping cars

[GeoffM]

What are the rules, ie, what should I know going into it? Any pointers or guidelines?
I thought it'd be a great idea, and there are a few cars I have my eye on. My goal for this would be to buy a car for cheap that has a few problems, fix it, and then sell it.
A few points I can think of:
Don't get too attached (And end up keeping it)
Don't buy a money pit (Any easy ways to tell?)

During the school year (almost over) I live in a fairly high traffic area, being on the same street as the school. I'd have a high visibility for any cars I put out. So any sales will hopefully occur quickly.

If you can give me state specific advice (MI), that's be great. Otherwise, any advice would be great.

[skilzz]

dont buy a money pit. stick to hondas. if you can find the ones that tuners need (90s-99s)in good condition scoop it up quick because those will sell fastest but being an honda enthusiast i usually fall in love every now and then

buyin cars closer to 2000 model year means its gonna sell for more money so you will have these sitting around for awhile.

civics and integras; you can get rich off em

[GeoffM]

I was quickly browsing CL and found these:
http://detroit.craigslist.org/wyn/cto/2411533355.html
http://detroit.craigslist.org/mcb/pts/2406858575.html

I will stick to Hondas, because that's what I know.
I'm kind of worried about that Prelude though. It seems like it might be too old. Both of them I'm worried about getting back to my house. I don't have access to a free flatbed, so towing them would cut directly into my profits.

[JoshM]

Check your local laws about how many cars you can sell per year prior to needing a dealers license.

Start with cars only needing small repairs. It may cost more for the car, but the less you have to fix, the faster you can sell it.

Don't get cars that are going to be a difficult sale (ie. that Passport).

[Losiracer2]

the CB7 is a great car to flip. I recently sold one last month, bought for 300, put about 1100 into it, and sold it for 2800...but I was REALLY lucky that I found the right buyer.

But it was a fairly easy and good condition car to flip. The body was 100% rust free and all it needed was a bumper and door which I found from a guy parting an identical CB7 about 10 miles away. Actually, now that I think about it, I was really lucky to find the parts for as cheap as I did.

Things I needed:

Engine block, good condition cyl. head, entire pass. side coupe door in frost white, bumper in frost white, motor mounts (rear vacuum one I got for 20 bucks, Honda OE in great shape)

Originally, I bought the car as a possible blown head gasket, but it turned out way worse and I ended up needing a new block b/c it was corroded so bad. Also, the spark plugs snapped in the head, so that wasn't any fun either.

So you have to be prepared for things like that...always plan for the worst.

I started out the job w/o air tools and I found out that life sucks w/o air tools so I invested in a compressor and impact, luckily I found a 22 gal 5hp comp. and IR impact w/ hose all for 100 bucks.

I also ended up purchasing an Engine hoist and engine stand after I found out I needed to put a new block in it.

[skilzz]

be very careful what you get older than 1990. example, id avoid that prelude but a civic or crx hatch of the same year in that shape is ATLEAST 600 profit when sold, of course the final sale price depends on you and how fast you want to flip.

the suv id kinda avoid as i think those are a V6 powerplant(bad for business with todays gas prices) and if its an auto trans your looking at 600 alone for the trans from the wreckers (this is where i stress avoid automatics). after all that your gonna get low balled like a mofo because of the mileage


edit: as losiracer said YOU WILL NEED TOOLS. put a engine hoist at the top of your list or if you kmow someone with one make them your new best friend lol

[GeoffM]

Check your local laws about how many cars you can sell per year prior to needing a dealers license.

Start with cars only needing small repairs. It may cost more for the car, but the less you have to fix, the faster you can sell it.

Don't get cars that are going to be a difficult sale (ie. that Passport).

I found out after, but it turns out the guy I bought my car from actually flips them. When I go there this week to diagnose my AC I'll ask him what he does.
What makes that Passport a difficult sale? Kbb says 1800. If I can buy it for $400 (Even $500), but $200 in new brakes on it, then sell it for $1500, wouldn't that be a good deal?

the CB7 is a great car to flip. I recently sold one last month, bought for 300, put about 1100 into it, and sold it for 2800...but I was REALLY lucky that I found the right buyer.

But it was a fairly easy and good condition car to flip. The body was 100% rust free and all it needed was a bumper and door which I found from a guy parting an identical CB7 about 10 miles away. Actually, now that I think about it, I was really lucky to find the parts for as cheap as I did.

Things I needed:

Engine block, good condition cyl. head, entire pass. side coupe door in frost white, bumper in frost white, motor mounts (rear vacuum one I got for 20 bucks, Honda OE in great shape)

Originally, I bought the car as a possible blown head gasket, but it turned out way worse and I ended up needing a new block b/c it was corroded so bad. Also, the spark plugs snapped in the head, so that wasn't any fun either.

So you have to be prepared for things like that...always plan for the worst.

I started out the job w/o air tools and I found out that life sucks w/o air tools so I invested in a compressor and impact, luckily I found a 22 gal 5hp comp. and IR impact w/ hose all for 100 bucks.

I also ended up purchasing an Engine hoist and engine stand after I found out I needed to put a new block in it. So things like that you have to prepare for.

That's WAY more then I want to do. But I see what you're saying. Hopefully all the cars I start with will be easy enough
I already have air tools, and I agree, they make it SOOOO much easier.
For example: Taking off caliper slide pins to grease them today. I took them off by hand and tried putting them back on by hand (new hand tools). After the bolt wouldn't thread, I got frustrated and impacted it in(I know, always start buy hand).

[GeoffM]

be very careful what you get older than 1990. example, id avoid that prelude but a civic or crx hatch of the same year in that shape is ATLEAST 600 profit when sold, of course the final sale price depends on you and how fast you want to flip.

the suv id kinda avoid as i think those are a V6 powerplant(bad for business with todays gas prices) and if its an auto trans your looking at 600 alone for the trans from the wreckers (this is where i stress avoid automatics). after all that your gonna get low balled like a mofo because of the mileage


edit: as losiracer said YOU WILL NEED TOOLS. put a engine hoist at the top of your list or if you kmow someone with one make them your new best friend lol

I have a respectable sized collection. I don't have a hoist or a stand, but those can be borrowed or had brand new for around $50 each.

So, as a rule, I should look out for automatics?

[skilzz]

yea only reason i bought my TL is because i knew i was gonna keep it. trans was 750. almost the price of the damn car

[Accrdwgnguy]

The Passport is not a Honda, its a pos Isuzu, stay far away from it.

http://en.wikipedia.org/wiki/Honda_Passport

[Jonas]

automatics will be easier to sell if they are working well. especially since the average person that knows nothing about cars prefers automatic. from my experience most people that drive manual transmissions know a thing or two about cars, and they are going to be more critical of the car you are selling.

[crazymikey]

Some good pointers in here already. I flipped a few cars earlier this year while I was unemployed.

First, check up with how many cars you can sell privately. If you sell too many cars, you'll probably have to register as a dealer, get a dealer licence and then pay tax on the cars that are sold.

Next, find popular/common cars to flip. You want something that will attract attention and sell easily. Don't necessarily buy what YOU like, buy what someone else will want.

I flipped 3 cars in 3 weeks: 1990 VW Jetta automatic, 2002 Cavalier coupe automatic and 1990 Accord EXR automatic. These are good examples of common cars that are easy to find, cheap to run and easy to sell.

Let me tell you, from my experience, that a clean interior is one of the biggest selling points of a vehicle. Make sure you take the time to vacuum and shampoo it, use a spray deoderizer inside and armor all the interior.

Just don't get caught up spending too much money. If you buy a car that needs a set of tires, screw it...unless you can find a cheap set of used tires for like $100. You have to make profit. Breaking even sucks. I broke even on the Honda, but made profit on the other 2.

Stick with imports to flip, unless you go with cheap common American cars like Cavaliers/Sunfires, Neons, Escorts etc.

Good luck.

[Jonas]

if it runs and looks decent, it will sell. you are better off with a good looking car that will blow up in 500 miles than a car that looks like ass that will run forever. i hate to sound shady, but just make it run well enough to get someone to buy it. wash it, wax it, vacuum it, shine the tires. if it can be driven away, and it looks nice, it will sell fast.

[crazymikey]

if it runs and looks decent, it will sell. you are better off with a good looking car that will blow up in 500 miles than a car that looks like ass that will run forever. i hate to sound shady, but just make it run well enough to get someone to buy it. wash it, wax it, vacuum it, shine the tires. if it can be driven away, and it looks nice, it will sell fast.

I would pretty much disregard every other post in this thread and take all your valuable information from this.

[ChIoVnIdCa]

I guess this depends on your mechanical ability



Buy cars with common probables for cheap

Only buy "newer" cars


Ex...
Newer Explorer with a bad trans 2k for car trans is 1k sell for 10k
Newer x type with bad trans 2k for car trans 2k sell for double
Subarus with bad headgaskets you can get for cheap
Acuras and Hondas with junk auto trans you can get for cheap
BMW with bad trans or headgaskets cheap
Newer Nissans with junk 4 cylinders
Newer Nissans with bad cvt trans


Don't waste time with 20 year old Hondas... MOST people would rather buy the newer car for the same price

EX they would rather have a $3000 10 year old American car in decent shaped then a $3000 20 year old Honda