andsimp2

Well I have been into cars for the longest now. I owned a CPO 03 C230 Benz and just sold it for the same price I paid but driven it for 3 years. I did a little modding only changed the rims for some cheap $400 replicas and thats it, and sold the stock rims for $300. I put about 15K miles on the car and bought it used with 30K on the clock. So now Im thinking is this rare to drive a car for 3 years and get exactly what you paid or what ? I was amazed. So now I have got access to Manhiem and Galves Auction Prices, I figured maybe I should get the cars from the dealership or private party below trade-in values with 1 year plus warranty remaining or CPO then flip it 1-3 months later. Warranty gives a peace of mind, plus I dont want a car without it. Also the dealership can fix problems, that way its not costing one penny. I mean I see people buy cars and they depreciate badly especially BMWs,Benzes, Jags, and Lex.So rather then taking a depreciation hit, Im thinking about just driving and then flipping the cars 3 months later for what I paid or some profit. That way I have the freedom of driving a nice brand spanking used car without any depreciation hit at all. I figure the best way to get a car where the value is really steady is when the car prices are anywhere under 30K, even 15K. I noticed cars priced 13K-18K the value is steady and doesnt really depreciate but stay constant for a period of time since the market is influctuated. Right now I have a 04 SC430 under trade in plus CPO warranty left on it too. I am 21 and I am a good negotiating with the Lexus dealer, and private party. I am considering making this a hobby. I dont want to get a dealers license bc of liabilty. So I think maybe driving 4-6 different cars per year is good. What you think. I need the forums imput.

jackblack7

I guess if you can do it consistently, I don't see a problem with it. Though I'd be surprised if you can do it consistently. Also, what about tax and registration? Wouldn't you have to make enough to cover that each transaction?

What do you mean by "influctuated." I can't figure out what word you're trying to say there.

andsimp2

^ Well I figure gettin cars priced under 30K and the sales tax is factored in too. In other words I get profit to cover over the price of car plus the sales tax upfront when I sell it. Cars under 17K less sales tax at least in my state tax is 5%.

Fiko18

if u got that kind of free time then go for it, its alot of hassel to keep doing this every couple months. If u want to buy a car and hope to reurn it for the same price then buy a mini cooper cause they dont depreciate. I bought an IS350 and it feels like a brand spankin new car everytime I drive it and I love it, who cares if it depreciates I plan on keeping it for a while.

andsimp2

^Well if you like lossing money then go right ahead. Me on the other hand I have the benifit in driving a new used car under trade in values for 2-3 months then sell it for what I paid incl taxes and reg fees, and make the same price and or a small profit of $1000-$2000. That sounds more ethical and smart to me to drive a different whip and havin fun making a little bit of money or driving for a hobby without depreciation hit.

Evitzee

Go ahead and try it, but I don't think you'll consistently be able to drive cars for 'free' over the long haul. You got lucky so far, but you'll end up with a few clunker deals, too. It's a lot of hassle and it is not my idea of a 'hobby', but if this is your thing than do it. Keep us posted long term as to how it works out.

MPLexus301

iTrader: (3)

I have recently discovered how great this works. I bought my 2000 4Runner SR5 4x4 for $9000. I put about $600 in it for a sound system and keyless entry and sold it last month for $12,900. I just bought a 2003 Camry SE 4cyl for $12K and it only has 42,000 miles on it, and plan to sell it soon for what I bought it for or maybe a little profit.

You just have to find people who are willing to dump their car for below KBB, and people who are willing to pay more

sdbrandon

Factor in taxes, car registrations, etc. and you will find this is not worth it.

Yeah you make a buck off a car. But there are a lot of folks who can find and buy cars below KBB, AKA auction pricing. This is not new.

If you want to make it easier, get a license to buy cars at auction.

bagwell

you've done 1 deal....and got lucky...

if you have the time and patience, its POSSIBLE but not probable.

also - aren't CPO cars pretty rare to buy from individuals? so then if you go the dealer route they will rape you on your trade.

Redpaste

iTrader: (4)

check with your state laws too. Many states dont allow you to flip more than 3 or 4 cars a year, otherwise your conidered a dealer and need proper licenses for that

mmarshall

I agree with the other posters. Sometimes this works and sometimes it doesn't.....it can be very risky, like buying cars at a public auction where you don't know its history.

You also have to be careful how often you do it. As Redpaste pointed out, do it more than a couple of times a year and you then have to get either a state auto salesman or professional auto trader license (the number of times varies by state). And there is a reason for that. Doing it more than just a few times a year means that, in effect, you are running a buisness......and buisnesses are taxed and regulated.

plex

iTrader: (11)

It's fine to flip just double check your state laws and really look at your potential profit margin to see if it's worth it. I think it would be good to put a business plan together on paper with estimates also.

andsimp2

Well Im thinking about once every 3-4 months instead.

rfx45

As stated before, it has it's negative and positive.

My friend does this a side hobby but that's only because he has a lot of time and he owns his own autobody shop so it is a lot easier for him to get a profit. He can buy a dilapidated car for almost 20%-35% it's KBB because of a bad engine and horrible body and paint. He could fix it at a fraction of what you would usually pay and flip it for near or sometimes even over the KBB price.

It requires patience and time so if you have a full-time job, meaning 40 hrs. a week, it would be difficult to earn profit from it. There's also the possibility of the car breaking down after it's purchase, which is the case with most re-possesed cars, which you would lose money instead of gaining it.

It's a good idea and I have numerous friends that tried it and got tired of it eventually. It could work, but it needs a lot of research, moderate knowledge or cars and how they work, time and some luck in both buying and selling.

Good luck on your venture though.

blacksc400

iTrader: (4)

It is fustrating, I can tell you that... especially you are selling anything over 10K, you have to find people have CASH to make the deal happen...
trust me.