I could sell my wagon tomorrow for 1900 in profit, but the sentimental value of it is worth way more too me. The guy reminds me of his offer everytime he comes into work.
If it was all about profit im not sure i could enjoy the hobby. Im still scared to add up what i lost in 08 when i got laid off and had a fire sale.
I used to make money on every car, that's how I made money. But then I started buying stuff I liked and lately have been on a streak of loosing money on cars. $1000 was my worst hit and that's nothing compared to whatever people lose for normal depreciation.
Nick (LUCAS) Comstock wrote: Not even a consideration.
I shop carefully and buy cars with the intention of driving them until the wheels fall off, putting new wheels on and driving them some more.
For me, it's keeping enough cars that I can buy opportunistically and not "need" to find something. I like the challenge of finding a $4k car but only paying $2k. By the time I tag it, insure it, and sum all of the parts and the LKQ runs to fix every last missing piece and part, realistically I'm not making money. But I end up with a hobby and something to work on, plus the fun of the chase to find it and then make it better than when I got it. If I can then sell it for between a little less than I paid and a little more than I paid, I'm happy.
Cars are like underpants. You use them up and then get new ones.
Most of you are doing it wrong. 
Depends what you consider "losing money". Most people would consider it "beat depreciation".
Do I sell them for as much as I paid or more? Yes, I try to do that as often as possible. Its not very hard.
Do I sell them for almost as much as I've paid, even after putting on 50k + miles? Yes, again.
Am I still losing money? Most likely. Its virtually impossible to own a car and not have it cost you anything between insurance, taxes, time value of money, etc.
Best performance so far is a Saturn Wagon I paid $1000 for (-$1000). 20k miles later it was later rear ended and I was paid $1600 for repairs, which I never made (+$600). I then drove it another 20k and sold it for $1300 (+$1900).
Our recent Prius we drove for like 20k before it was hit and we were paid $300 less than we paid for it. Not great, but not bad either.
I find that sales tax is the real killer in trying to "break even", seeing as (in FL) you have to automatically tack on 7% to your purchase price (and register it), which puts you behind the 8-ball right out of the gate.
That being said, I can usually buy something, drive it while fixing it up, and by the time I am ready to move on I will have accrued enough positive equity to get me into the next car without any additional funds required for a down payment (I love PenFed).
It depends. For my classics/collectibles I try to make money, but at least break even. A big part of it is simply having the money available to jump on deals immediately and being willing to do your own work. Another option is to be willing to buy multiple cars at a time. Some people are just getting out of the hobby for whatever reason...money, health, divorce, etc and will give you a better deal with a no hassle sale and/or if you take everything. One guy didn't even want to see me...I dropped the cashiers check off with someone and picked up the title, then got the car. I never met him, only talked to him for probably 10 minutes on the phone, didn't beat him up over what the car needed, and the deal was done. This particular guy had plenty of money and I really think would have been happy to let the car sit and rot, but since I made it so easy I got the car and it turned out to be a great deal, but there was risk involved because I didn't get to thoroughly inspect it. It worked out that time, but you have to be willing to take the hit if it doesn't.
On the other hand, for my wife's cars, we buy new and take the hit...the warranty is worth it to us. She currently drives a 2012 Wrangler that's still under warranty and I switch between my k1300s and a nice but high mileage 85 300sd benz.
No... I buy high and sell low. 
When I'm selling a car it's because it's broken on me so many times and I am so sick of looking at it I just want it gone. I bought my E30 off this forum thinking it was a good one. After 3 years of wallet draining hell, I sold it for Challenge $$$$ to another forum member. Between purchase and all of the parts I bought for it, I probably lost around $5K on it and never really enjoyed driving the car (a constant fear of it breaking again will do that to you). And you guys wonder why I hate E30's so much...
My Cummins 4x4 truck was an even worse loss. A lesson in how NOT to buy a vehicle off eBay.
The only car I've sold that I even came close to breaking even on was my Spit 6.
dropstep wrote: If it was all about profit im not sure i could enjoy the hobby. Im still scared to add up what i lost in 08 when i got laid off and had a fire sale.
It's not all about profit for me, it's about enjoying the car while losing as little money as possible. I tried to do a fix-and-flip once, I couldn't figure out how to fix the car, and it became an albatross around my neck. I eventually gave up and sold it. Just about broke even, but still, the whole experience put me off it. So I don't buy anything I don't actually want to drive and enjoy.
But I do keep resale value in mind, no matter what I'm buying or what I'm doing to it. That's a big reason I never go crazy with mods. First off, they are expensive, and secondly, most buyers don't want them and surely aren't willing to pay for them.
Yes, I sell 3 - 4 cars a year to supplement my income. It's difficult, and I've lost money on one or two over the years.
If you're emotionally invested, you've already lost. After that, it's a game of hot potato. The longer you hold on, the more likely you'll get burned.
Great topic and replies! I am going to give it a shot and see how far i get. We have been given 2 cars and i sold 1 and bought 2 more cheap ones. So far am ahead for now, hopefully it will last as i learn from past mistakes.
I made money on a car exactly once: I paid $100 for a B12, spent $25 on a gamble for a junkyard throttle body (failed MAF), put $100 in tires on it and $150 in brakes and ball joints on it, and sold it for $400 after 30k or so. Also probably six or seven transmission governor gears at $5 each, which would strip if you so much as locked a front wheel at highway speed. (After two gears you had to change the trans filter, too, as that was enough to plug it)
Not counting oil changes or other fluid services, of course, That would be like counting fuel towards the price of the vehicle - that is a per-mile expense and not a vehicle expense.
All the same, that car sucked but it was awesome. Strippo base model with no options but an automatic, it would get 40-42mpg with ease and it didn't make enough power to highlight any glaring chassis shortcomings. The downside is that it never built heat. In the winter it would almost get up to temp by the time I got to work. Blocking off 2/3rd of the radiator helped psychologically but not realistically.
dean1484 wrote: Cars are like underpants. You use them up and then get new ones.
Good idea: "I bought a new car. Well, new to me anyway."
Bad idea: "I bought new underwear. Well, new to me anyway."
I made money on a car (i.e purchase price+non maintenance repairs<sale price) twice, once it was a free car that I sold when it pissed me off (the engine spun a bearing). The other was a trade in bought off the backlot of a car dealership for $400.
I deal with the bottom of the market. I buy cheap cars and run them to death. Very seldom do I make money on them, but I don't necessarily loose money either. The van I just sold, I paid $2500 for, drove it for 230K miles and sold it for $1500. Even counting repairs, I don't call that loosing money. I definitely got more than $1000 in value out of it before sending it down the road. I'll do much the same with the Colorado.
If I sold the Samurai right now, I could probably double my money. If I sold my truck, I could break even. But since I don't buy them to make money, it really doesn't matter. I buy what I like, regardless of what I can sell it for.
my goal is to do nothing less than break even or drive it into the ground. occasionally i lose, most of the time i win. i lost saturday when i got $500 for the astro van that i paid $500 for, plus $38 in tax/title fee, plus $65 for tuneup(that did not fix the misfire hence offing it ASAP) and door handle.
i've sold $0 cars for $300, $400 cars for $600, a $500 caravan for $1150, etc... if i'm deliberately trying to make money i stick to low hanging fruit. if i'm trying to get something that i really want i'll not pay attention to the cash until i am bored and it's time to sell, then i'll add it up and see if making a few $ is feasible. i'm also more apt to give a GRM'er or someone in a worse situation than myself a better deal. guy that bought said astro is on disability, waited till the beginning of the month to get his check so he could buy it, and has a brother in law mechanic who could diagnose the misfire for him. i let it go because of those reasons, plus i really wanted it gone.
Knurled wrote:dean1484 wrote: Cars are like underpants. You use them up and then get new ones.Good idea: "I bought a new car. Well, new to me anyway." Bad idea: "I bought new underwear. Well, new to me anyway."
I can not stress enough the importance of the word "new" in that comment.
The only time I made money on a car was when I offered to buy a coworker's Dakota for $300, and another coworker wanted it more than me, so he paid me $100 to not buy it.
Otherwise, I buy to enjoy. I save for retirement and other things, so the car is a sunk cost that I enjoy in the meantime. If there's money on the other end, then great.
Last year I bought a 2003-ish Mitsubishi Montero for $300 from a co-worker because it wouldn't pass smog.
I didn't plate it or insure it. I drove it straight to the Pick-n-Pull, where they gave me $400 for it. Less bus fare home, I made $98 on the deal.
I'm pretty sure that's the only time I ever made money on a car.
chiodos wrote: I used to make money on every car, that's how I made money. But then I started buying stuff I liked and lately have been on a streak of loosing money on cars. $1000 was my worst hit and that's nothing compared to whatever people lose for normal depreciation.
i once stuck almost $20k and untold hundreds of hours into my 71 Nova over a 5 year period.. then i traded it even up for a 74 Monte Carlo... which i sold to a friend for $2200 4 years later...
and i have zero regrets. i figure that the money and time spent was an investment in my sanity...
I never go into buying a car with the thought of losing money. But I do use the depreciation curve to the fullest. If I'm on CL, I try to find that "diamond in the rough", if I'm buying a more expensive car from the dealer, I try to find that car that's been on the lot for an eternity and steal it at auction prices.
Race car or toy, no. Daily driver, yes. I generally buy broken stuff, fix it, drive it for a while, and sell. It hasn't worked very well lately, though. Between low interest rates and dealer incentives, it's really tough to sell a mid range used car around here.
I've sold a whole bunch of vehicles for more than I bought them for, but I'm also pretty sure that with proper accounting, I still lost money on them. That's why it's a hobby.
Plus of course, a big smoking financial crater like my 996 can ruin the "breaking even" bit for years to come.
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