"flipping" cars using only internet know-how

 

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The idea is that I have about $10,000 that I got as a severance check ...
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    xatana is offline Newbies
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    Default "flipping" cars using only internet know-how

    The idea is that I have about $10,000 that I got as a severance check from the military. I found that from my previous cars that I bought to own, I have a knack for finding good deals on cars. So I'm going to put that to good use. I scour the internet used car sites, find a good quality used car around $9000. I'm not looking to make repairs, so I'm going to be very tedious with my research to make sure that I've found a good car with low miles and no problems.

    I have taken this a little farther than on paper and have found my first vehicle to sell. I won an ebay auction on a 2005 Jaguar XJ8L that blue books for $14,300. I paid $9100. The car checks out, there's nothing wrong with it. Had it inspected by a mechanic.

    I am now looking for how to sell this car quick and for the maximum profit. My first hurdle is taxes and registration and titling. Title processing takes weeks, it will cost me over $950 to title the vehicle in my name (I'm in Tennessee, highest sales tax in the US, yay!). So that's not an option that I'm all for. I'm limited to selling 5 vehicles per year, so if my wife and I each do 5, that's 10. This isn't my primary means of income, just a supplement while I go to college. The first way around this is to get a dealer's license. Apparently, the dealers around here own the politicians because it's retarded hard to get a dealer's license. So that's out of the question.

    I have seen that most people who flip cars just title jump them. That is, get the seller to just sign the back and leave the rest blank, print out a bill of sale for my personal records, and then put the new buyer's information on the title. No taxes, no wait time, etc. All it takes is some interesting stories as to why someone else's name is on the title, and that's that. Also, I wouldn't be limited to 5 a year, because technically, I never owned the car. I'd like to avoid this option if at all possible, because it's obviously illegal. It's a law that isn't enforced at all, from what I've read.

    So I'm not ripping anyone off, just taking advantage of being able to find deals on the internet. My hurdle is the processing time for selling the car, really. I'd like to avoid the $950 in taxes, but I might be willing if the processing time was a couple of days instead of weeks.

    Anyways, if anyone has any experience in this, it'd be appreciated.

    PS: It's worth mentioning that I'm only very slightly mechanically inclined, and I do not want to buy/sell cars that are in a cheaper price range or have problems. I literally want to detail the car, and use my marketing skills on the internet to get my profit.




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    Default Re: "flipping" cars using only internet know-how

    I have not done this, but a friend of mine has.

    He buys cars from smaller towns, they are usually 10-20% cheaper due to the lack of people wanting to travel far to buy them.

    He then brings it to the city, and sells.

    He usually buys common SUV's for about 5k, and sells them for 6k does thins like once a month to make a bit of money.

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    steelballs is offline Banned - see signature
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    Default Re: "flipping" cars using only internet know-how

    This could develop into an interesting thread

    This guy here is an international car dealer who may have some tips to get your car trading business off the ground

    Here is his link
    Duffers5000
    http://www.blackhatworld.com/blackha...ffers5000.html
    This member has been permanently banned from BHW.

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    Default Re: "flipping" cars using only internet know-how

    This is an interesting take...most small towns around here usually think their stuff is gold and it sells for way more than in the next bigger city.

    The thinking also goes that nobody wants to go out of town to get what they need so they settle for a higher price so they don't have to travel.

    Anyway it is good to hear someone else talk about prices in smaller towns.



    Quote Originally Posted by youtalkmedia View Post
    I have not done this, but a friend of mine has.

    He buys cars from smaller towns, they are usually 10-20% cheaper due to the lack of people wanting to travel far to buy them.

    He then brings it to the city, and sells.

    He usually buys common SUV's for about 5k, and sells them for 6k does thins like once a month to make a bit of money.

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    Default Re: "flipping" cars using only internet know-how

    I guess you have an opposite thing going on. I am in Toronto and everything here is always overpriced..

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    xatana is offline Newbies
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    Default Re: "flipping" cars using only internet know-how

    Quote Originally Posted by youtalkmedia View Post
    I guess you have an opposite thing going on. I am in Toronto and everything here is always overpriced..
    Really it's just what you manage to find. People selling that don't really have a grasp on what the car is worth, people selling who are in a pinch and need quick cash, lowball offers that get accepted, etc. I've had quite a few prospects.

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    Default Re: "flipping" cars using only internet know-how

    My buddy does this too.....he does auctions and buys stuff off of craigslist.
    If it needs to be fixed he fixes it though..
    the trick is to find the good deals and re sell it on craigslist.
    also he tries to atleast pay 500-1k below trade in and if worst comes to worst and he cant sell it in a timely fashion he just sells it to carmax. or he takes them to a auto auction and there is a minimum bid you can set just like on ebay.
    his only problem is here in VA you can only sell 5 cars a year that are registered to you. So he has me or his wife if he actually registers them in his name.
    most of the time he jumps titles but that is risky cause its illegal and dmv agents(yes they have them) look out for this type of stuff on craigslist.
    He is in the process of getting a dealers licence as well but inorder to activly do that here you have to have a lot and it cant be your house. so he "rents out" a portion of a lot that a guy he knows that has a car lot. I dont know where your from or what the laws are but you should definatly look into this....my friend makes pretty good money doing this as a hobby...if you did this full time you could definatly make a living. people do it all the time.
    oh and another thing.....when you buy a used car you are taking a gamble. whos to say a repair doesnt take you over any profit you can make...my friend has lost money on a cars before but luckily he usually covers his losses with money he makes.
    Good luck!

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    Default Re: "flipping" cars using only internet know-how

    I have bought cheap cars at auctions locally for like $600, then just detailed them, maybe hit a few rust spots with some paint that sorta matches, bring em back to the same auction place two weeks later and sell it for $1800 or more. Have also trolled CL looking for desperation sales, get em as cheap as you can, then clean em up and market them on message boards for that type of car or right back on CL with new better pics and a higher price.

    Pics sell cars, or at least get folks interested so take the best ones you can with good lighting.

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    Default Re: "flipping" cars using only internet know-how

    So I'm still looking to hear from someone that knows how to get around my current problem. How do I resell this car without title jumping it? It costs me a ton of money and 3-4 weeks of processing time in order to title it in my name. The wait time is just not acceptable, since I can't do more than 1 car at a time.


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