Flipping Cars

This was my go-to side hustle for ~15 years.

Customers have definitely become worse, but it's still relatively easy to weed them out via email. Don't communicate over text unless you've already vetted them.

The "vacuum + wash" cars tend to be low effort/low profit. Value your time accordingly.

Eventually I settled on finding a high volume model that suffers from a common failure point. Get really good at replacing that one specific part quickly, and now you've got a plan for success. Bonus points if the repair requires specialized tools. Double bonus if the failure renders the car inoperable without mechanically damaging it.

Also factor in the time & expense of registering the car in your state. 

+1 on the ones where the body looks good but there's mechanical issues. I don't remember the screenname of which of you maniacs I talked to at the Eclectic garage tour who has done dozens of Subarus with good bodies and bad head gaskets

calteg said:

Eventually I settled on finding a high volume model that suffers from a common failure point. Get really good at replacing that one specific part quickly, and now you've got a plan for success. Bonus points if the repair requires specialized tools. Double bonus if the failure renders the car inoperable without mechanically damaging it.

Also if you are working on the same basic car you can stockpile junkyard parts that you know you will need later.

I have had good luck buying cars that come with a bunch of extra parts. Usually enthusiast or performance parts. I usually was able to sell the car for more than I paid for it when I was done using it and then also made money of the parts.

As others have said it can be "interesting" dealing with some buyers. 

John Welsh said:

In reply to confuZion3 :

If you're not in Northern Ohio or Indianapolis, we will gladly teach you the Prius game.  

 

Prius: https://grassrootsmotorsports.com/forum/off-topic-discussion/business-idea-creative-input-needed-prius-content/196386/page1/

Prius: https://grassrootsmotorsports.com/forum/off-topic-discussion/500-prius/186073/page1/

Prius plus:  https://grassrootsmotorsports.com/forum/grm/this-weeks-salvage-auction-targets/273534/page1/

Pontiac Vibe: https://grassrootsmotorsports.com/forum/cars-sale/06-pontiac-vibe-for-sale-listing-or-build-thread/145574/page1/

Since this is all gambling, this one involves a loss, not a win: https://grassrootsmotorsports.com/forum/grm/salvage-cars-know-when-to-holdem-know-when-to-fold/164801/page1/

 

What a coincidence! I live right on the border of Northern Ohio and Indianapolis! 

Kidding.

Yeah, this is strictly a hobby approach. I just want to give it a try, but if it makes a little money, then best case, it can help fund my racing seasons. Mostly, I use the Cobalt as an example car, but geeze are they plentiful. So, four doors is best. I assume a manual would make ME happiest, but I want to sell it, so I'll look for an auto. I'll do a little searching and maybe impulse buy something stupid. If I do, you'll all be among the first to learn.

Then I'll try to sell it. Oh, hey, on the Classifieds here! Don't mind the smell of Pledge, that's not on the paint... it's just my gloves. From uh... cleaning. The house. 

I go for good looking cars with mechanical problems.  Made $3500 on my last two, total hours spent 10 for $350/hr.  I shoot for $100/hr.

I see cars that need repairs or un-diagnosed problems then research what it could be before I show up.  BMW that was running now won't start, belt falling off and wadding up is a possible issue from a leaking filter housing.  Sure enough belt is off, I didn't like the car enough to buy it so I showed the owner the belt issue.

With the cost of repairs in a shop today many are getting the estimate then sell.  A G37 needed $2500 in repairs, not worth fixing to the owner, to me it looked like $300 in parts and about 5 hours of work.

One I am looking at today is a 2014 335i XDrive, $2000, has milky oil.  Common problem is the oil filter/cooler housing, oil to water cooler can go bad or just the gasket.  How common is an N55 head gasket issue?  $300 part or $800 head gasket...

calteg said:

This was my go-to side hustle for ~15 years.

Customers have definitely become worse, but it's still relatively easy to weed them out via email. Don't communicate over text unless you've already vetted them.

The "vacuum + wash" cars tend to be low effort/low profit. Value your time accordingly.

Eventually I settled on finding a high volume model that suffers from a common failure point. Get really good at replacing that one specific part quickly, and now you've got a plan for success. Bonus points if the repair requires specialized tools. Double bonus if the failure renders the car inoperable without mechanically damaging it.

Also factor in the time & expense of registering the car in your state. 

I did the same thing to pay for college. My go-to was dead fuel pumps. I pretty much figured out how to slap a Walbro 88lph fuel pump into anything and make it run with key-on power. If the body was decent and it would run on ether, I'd make a lowball offer to drag it out of their driveway.

No way I'd go back to flipping cars now though. Too many electrical gremlins that can take serious time to chase down. I've been dabbling in small engines and bicycles, but only for my own uses.

I missed this thread during the initial go around (we were at the Challenge )

Echoing others, the best money is made on the purchase side of the equation.  Find out where the deals are at, and hunt there.  You have a friend who works at a dealership parts counder and can funnel you cheap cars customers don't want to pay to repair: buy there.  You are frequently on the Book of Faces market place?  Sort by listed in the last 24 hours and Pounce on a deal when it pops up.  You live near an IAAI auction yard or CoPart yard?  Get a membership and buy your targets there.

Also know yourself.  Do you enjoy mechanical repairs? or do you like body and paint ( I think you already said you don't).  Either way hunt the cars that need your skill set.  An alternative to body and paint is buying cars that were produced in large enough quantities that junk yards / eBay have body color bolt on parts you can grab.  That way you avoid the need to do your own paint.

I started my side hussle when the inflation monster ate into my real world purchasing power.  As a result, I don't track my hours like other here strongly suggest.  To me the end result is the extra $2000 dollars that helps the family budget.  Whether I track my hours or not, it still is an extra $2k in the budget from my "second job".  I have an internal sense about what cars are worth it after doing several.

I started out with Priuii, but I've branched out into flipping other makes and models too.

Good luck !

Thanks, Indy - Guy! I like your point about not tracking hours--$2,000 is $2,000. If the time I spent making that was spent at home, and I got some enjoyment out of it, then that's fine. Mostly, I just want to see if I can do it at this point.

The new thing for Prius is the brake ABS pump replacement.  Batteries are too easy, but dash lights for the brake pump system cost more than a car is worth.  Learn how to do that and find a good source for parts and people will be paying you to take their cars.

I don't believe the Gary Vee script that you can make millions of dollars buying and selling but I have done my fair share. If I could find a way to do it full-time and support a family I would do it, but I just don't see it. I personally think some of the used sales folks make the money on loans or loan bonus then selling, I could be wrong but I know that Pawn shops make the money on loans/pawning. It's fun to flip things, sometimes I enjoy the interactions with people and swapping stories, and sometimes I don't. Cars are so up and down for me, the fact that you have to pay taxes and deal with the government makes it a lot harder rather then selling a product that you can throw in the mail. Best of luck to you!

In reply to porschenut :

What do you mean? Is the part expensive, or do you have to do something silly like disassemble the car to get to the thing?