fliping cars

[CADE_BADAZZ]

me and a couple of my freinds all know how to paint cars and do lite body work and interior and can apply a 5,000 dollar paint job for less than 1,000 dollars. so I plan was to get cars that run for cheap paint them buy rims for cheap and try to make a profit do aany of yal think its possiable to make huge profits like that. if anyone has advice or exspiriance doing this let me know

 

[rtm862]

Nah homie, that's not the way you want to go. I tried the same thing when I started. It's too labor intensive, and you have to invest your money twice. Once when you buy the car, and then when you paint it. Your lucky if you break even. The best way to make money from flipping cars, is just go to the auction, buy em wholesale and sale retail. All you have to do is sale them $500 - $1000 below whatever the dealer prices are, guaranteed money. And you can sell em cheap and make money because you won't have all the overhead. I did it for like two years, then put my money in some real estate. Got any questions just post em.

 

[CADE_BADAZZ]

how do i get to the acution without a dealrs licence and what are the action fees and requrment for dealers licence

 

[rtm862]

Getting to the auction is easier than you think. A lot of dealers try to make a profit of $1000-$2000 more than what they paid at the auction. So they end up sitting on cars for months. So to make up for this they take people to the auction and let them buy wholesale. Usually the dealer will ask you to pay all auction fees plus a $200- $400 fee for every car. So if you buy five cars at $300 a piece, the dealer just made $1500 without even taking them to the lot. This is easy money for him, and easy money for you. To give you an example, I bought a 97 Range Rover with 87,000 miles on it for $4500. The book value was $8500. I sold it way below retail for $6500 in two days. After paying the dealer his fees, I came out with around $1500. Now multiply that five times a week and your killin em. You see if you go to a car lot and have to choose between a $8500 Range with a new paint job, or a $6500 Range with the regular factory paint. Most people are gonna buy the $6500 Range.

As I said earlier some dealers will take you to the auction but not all. Of course the big dealers won't do it. But the ones that will usually do it are the Buy Here Pay Here lots, or lots with cars $10,000 or less. Especially the lots with nothing but old cars. Arabs and African owners will definitely do it. Maybe you know an owner and they can hook you up. Let me know if this helps.

 

[PaYpA]

how hard is it to get a dealers license ...

 

[rtm862]

It all depends in what state your in. The easiest states to get your Dealer license are New Jersey and New York. Here's why. In order to get a dealer license their are four things that are mandatory. You have to get bonded (up to $60,000 cash or property), pass a criminal background check, credit check, and get your lot insurance. There a lot of other stuff but they all vary from state to state. The reason why NY and NJ are the easiest, is because you only gotta put up $10,000 for the bond and there is no credit check. I had a few dealers tell me they are even lenient on the background checks too. So it all depends on what state your. But I can tell you what stops a lot of people is that credit check. Some states require you to have A plus credit.

I've been out of the biz for a minute so some of the laws may have changed. But I can tell you this. The easiest way to get a license is to go in with 3 or 4 people and form a LLC or LLP. This way you split all the start up cost, and all the bills in the future. So if you got a $2000 monthly lease, and $2000 monthly insurance, you don't have to carry all that debt by your self. Plus you don't have to hire any employees to do paperwork, salesman, drivers, etc. All the owners would do that stuff. This cuts off most of your overhead, which allows you to lower the prices of your cars and compete with out dealers.

What state are you in? I can check and tell you how to get started

 

[Real1]

Instead of getting a dealers license, you can go to a small lot owner and get a salesperson license through him. He will probably charge you $300 - $500/month.


You will/should get unlimited auction access and a dealer tag. You may even have the option to sell the cars on his lot, but he will probably charge you addtional or take a commission if your call sells on his lot.


Auctions are overated. I've sold about 10 cars. My best deals come from the newspaper and ebay. I've never checked craigslist.com or backpage.com or cars.com, but I imagine there a deals there also.

Use edmunds.com for pricing info. I find them to fairly reliable. Aim to pay trade in prices for cars. Don't pay attention to Dealer Retail prices. That is a fantasy price. Most deals don't even end up selling for Dealer Retail. Stick to cars under $10,000 and you will be ok. Start going too high and you are competing with dealers who have a brick and mortar location, a bullshit warranty, and the even more bullshit "128 point vehicle inspection before we sell you a car". Yeah right. All that shit comes from the auction or trade ins.

 

[gq_aphrodisiac]

Auctions are definitely over-rated just stick with cars.com and autotrader.com trust me...........another avenue if you know peeps outside the country that are looking for specific orders and specific customizations you definitely wilk make a profit. That's my day job

 

[malibu9in]

thats what i do for a living. you can not do a 5 grand paint job for a grand period. Ive paint cars and even had my own in hot rod magazine. I have a dealers license and its not easy to get. what i would do if i were you is start buy buying cheap ( 1000-2000) cars cleaning them and selling them. check craigslists. 1 owners are usally the best. Hondas mazda toyotas. People can generally afford to spend 3 grand but not 10 grand without financing. Stay away from customizing too. unless your on a high scale where people can afford ya. Then if thats the case you wouldnt need to flip cars either. big wheels and candy paint are cool but in the long run it wont pay your bills cause alot of those gents want something for nothing. hope this helps