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Alright, so before you just go flipping, you'll have to look at the requirements for your area to sell/buy.
In Colorado, you can sell up to 3 years a year "with profit in mind." Meaning anything you sell for more than you bought it. So now you want to flip cars... Now let me tell you something. At the beginning of this year, I took $1,000 and turned that into $4,400+. It took me approximately 26 days or so to do that. It wasn't very easy, but a good amount of money for a 20 year old. So how did I do it?
I went on Craigslist and found cars that had problems... CV Axles, thermostats, or small things of that sort. You can find almost any type of tutorial online as well for repairs. This is ideal for people who like DIY things. If you don't, and you usually pay people to do things, well then, this probably isn't for you. The first car I bought was a 1999 Volvo. I looked it up on Kelly Blue Book and found out it was worth about $3,300 in good condition. The car wasn't really in 'good condition' when I bought it though. Both axles needed replaced, the leather was cracking on the inside, and there was a door molding missing. Since it had all these problems, I told the guy $1,000 instead of the $1,500 he was asking for. He negotiated and I told him there was no way I was paying over $1,000 for the car. You kind of have to enforce the price when it comes to a car that has problems. Once he saw the cash, the wrote the contract and took the cash right there on the spot...
So now I had this $1,000 car with Axles that needed replaced and good miles. I ripped the suspension apart and replaced the CV Axles. A little hard, but nothing I can't handle... I also ended up having to do the spark plugs, wires, and distributor cap. I posted it on Craigslist and had a lot of interest. I was surprised... People always look for cars though, everywhere... So some guy came to look at it. He said the blue book value was $2,800. So I corrected him and showed him on the phone that it was worth over 3 grand! After negotiating (him saying this is bad, this is wrong, this is wrong, we'll give you this), I said no no no... I won't take under $2,700. He gave me the cash, we signed the contract, and boom... $1,700 profit on the car and I spent about $300 on the parts. So $1,400 net profit (all cash). So now what?
Now we look for another car, that's around $2,000... Just in case we need to buy parts. I looked and looked and looked. Finally found a 1999 Subaru Legacy 2.5L (sedan). He was asking about $2,200. I went and looked at it, noticed there was an oil leak coming from the timing belt area. Which concerned me, but it wasn't too big of a deal. Windshield was also cracked, and other than that... It ran great. So I put a new windshield on it for $116. Glass and installation was done for that price. Here in Colorado, Subaru goes for more than 'Blue book' value. It snows here a lot, and Subaru's (besides the BRZ) are AWD. AWD in the snow is simply beast mode. You don't slide or anything! I ended up buying it for $1,850, and turned it over for $2,600. So a $634 deal in about 2 days... Not bad. I wanted more though....
So now I have $2,600 cash, and I'm looking on Craigs for another car to flip and I come across this Mazda 626. Had a few dents on the quarter panel and the hood. However, it had 91,000 miles and records of oil changes etc... Also only two owners and no car accidents. They were asking $2,600 (out of their mind). I told her since it had dents and needed some serious body work, I would do $2,100. I don't think she knew the value of the car either, cause on the post she was it was a different model than it was in person. I checked both out though, and the model the car actually was, was going for like $3,400 blue book! We agreed on $2,200 and I bought the car again right then and there. Contract and cash.
I posted it on Craigs and someone texted me saying they wanted to buy it that day... I showed it to him, and he gave me $3,100. Didn't put one cent into the car. So there's another $900 of profit. I ended up flipping another car too...
So what you need to do is study. Learn your car and what different things go. They are complex and a little difficult to work on if you don't have common sense, but if you do, you'll be smart enough to figure things out. It can be a huge profit gain, and this was only within a month....
In Colorado, you can sell up to 3 years a year "with profit in mind." Meaning anything you sell for more than you bought it. So now you want to flip cars... Now let me tell you something. At the beginning of this year, I took $1,000 and turned that into $4,400+. It took me approximately 26 days or so to do that. It wasn't very easy, but a good amount of money for a 20 year old. So how did I do it?
I went on Craigslist and found cars that had problems... CV Axles, thermostats, or small things of that sort. You can find almost any type of tutorial online as well for repairs. This is ideal for people who like DIY things. If you don't, and you usually pay people to do things, well then, this probably isn't for you. The first car I bought was a 1999 Volvo. I looked it up on Kelly Blue Book and found out it was worth about $3,300 in good condition. The car wasn't really in 'good condition' when I bought it though. Both axles needed replaced, the leather was cracking on the inside, and there was a door molding missing. Since it had all these problems, I told the guy $1,000 instead of the $1,500 he was asking for. He negotiated and I told him there was no way I was paying over $1,000 for the car. You kind of have to enforce the price when it comes to a car that has problems. Once he saw the cash, the wrote the contract and took the cash right there on the spot...
So now I had this $1,000 car with Axles that needed replaced and good miles. I ripped the suspension apart and replaced the CV Axles. A little hard, but nothing I can't handle... I also ended up having to do the spark plugs, wires, and distributor cap. I posted it on Craigslist and had a lot of interest. I was surprised... People always look for cars though, everywhere... So some guy came to look at it. He said the blue book value was $2,800. So I corrected him and showed him on the phone that it was worth over 3 grand! After negotiating (him saying this is bad, this is wrong, this is wrong, we'll give you this), I said no no no... I won't take under $2,700. He gave me the cash, we signed the contract, and boom... $1,700 profit on the car and I spent about $300 on the parts. So $1,400 net profit (all cash). So now what?
Now we look for another car, that's around $2,000... Just in case we need to buy parts. I looked and looked and looked. Finally found a 1999 Subaru Legacy 2.5L (sedan). He was asking about $2,200. I went and looked at it, noticed there was an oil leak coming from the timing belt area. Which concerned me, but it wasn't too big of a deal. Windshield was also cracked, and other than that... It ran great. So I put a new windshield on it for $116. Glass and installation was done for that price. Here in Colorado, Subaru goes for more than 'Blue book' value. It snows here a lot, and Subaru's (besides the BRZ) are AWD. AWD in the snow is simply beast mode. You don't slide or anything! I ended up buying it for $1,850, and turned it over for $2,600. So a $634 deal in about 2 days... Not bad. I wanted more though....
So now I have $2,600 cash, and I'm looking on Craigs for another car to flip and I come across this Mazda 626. Had a few dents on the quarter panel and the hood. However, it had 91,000 miles and records of oil changes etc... Also only two owners and no car accidents. They were asking $2,600 (out of their mind). I told her since it had dents and needed some serious body work, I would do $2,100. I don't think she knew the value of the car either, cause on the post she was it was a different model than it was in person. I checked both out though, and the model the car actually was, was going for like $3,400 blue book! We agreed on $2,200 and I bought the car again right then and there. Contract and cash.
I posted it on Craigs and someone texted me saying they wanted to buy it that day... I showed it to him, and he gave me $3,100. Didn't put one cent into the car. So there's another $900 of profit. I ended up flipping another car too...
So what you need to do is study. Learn your car and what different things go. They are complex and a little difficult to work on if you don't have common sense, but if you do, you'll be smart enough to figure things out. It can be a huge profit gain, and this was only within a month....
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