Flipping cars

BrianMcLeod

BrianMcLeod

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I am curious does anyone flip cars? On here if so what are you looking for?
 
I've been wanting start with bikes and then move to cars. Once you have an eye for what's right and whats wrong its pretty fun. Investment cost is what I'd be wary of though.
 
Yea I just want to know what kind of car you look for and price range people can buy at
 
Do you technically have to be registered as a 'car dealer' to do this type of thing?

I've got a friend who does it "under the radar"... sometimes he makes a decent profit, other times not so much. He is a master mechanic, but there is only so much you can assume. Thankfully he takes the time and spends the money to fix them properly even if it means he won't be making much (or any) money with the sale.
 
It all depends on the state you live. Here in PA they won't bug you as long as your paying the sales tax on them, but legally your only allowed to sell i think 5 cars per year without a license in PA. I have bought and sold a bunch of cars over the years, along with a few bikes. I basically watch certain types of cars for really good deals, buy them uses them for a bit and clean them up and sell them. I pretty much average one car a year usually. But you always run the risk of taking a hit doing this.

This was the last car I did.

DSC01191.JPG
 
Every once in a while I think about it. I see some decent running but swirled/scratched/dirty car and think I could probably buy it, clean it up, and turn around and sell it for a few hundred bucks profit.

I also saw an older, 70's model car with single stage paint that the owner said was 'faded and needed a repaint'. It was textbook oxidized single stage paint. Very correctable to my eyes.

There are deals out there!
 
Flipping cars is illegal!
(Around where I live it's called curbstoning)

To buy and sell cars, for profit, without a dealer license, is illegal in every State.
Ohio Law: To engage in the business of buying or selling vehicles, you must have a used car dealer's license.

It further goes on to say, in so many words, that:
-A new owner must register the vehicle; obtain a new title; and pay fees and taxes.
To not do this is tax evasion.

-When an invidual or business sells vehicles for profit they must also pay state and federal income taxes on their profits.
To not do this is tax evasion.

NOTE:
When a car flipper buys a car...he/she is the new legal owner.

Did I mention that flipping cars is illegal?!?!
Let me also mention that I sure wouldn't give away any "trade secrets" if I was flipping cars!!

busted.gif


Bob
 
Hmm, didn't know it was illegal.

Though I do know some folks who 'go through' cars. They'll find a good deal, fix it up, clean it up, drive it for a while, sell it, and start over. 'For a while' might only be a few months. Not sure if that would be classified as 'flipping'.
 
Romans5.8 said:
Hmm, didn't know it was illegal.

Though I do know some folks who 'go through' cars. They'll find a good deal, fix it up, clean it up, drive it for a while, sell it, and start over. 'For a while' might only be a few months. Not sure if that would be classified as 'flipping'.
Click to expand...

Seems like a grey area...

For instance, I sold both of my motorcycles for more than I paid for them, however it was not my intent to "make a profit" when I purchased them, but how would one prove that in court?

Just a question... no intention of flipping any cars, but I'm sure everyone who enjoys polishing paint has thought about picking up a car for cheap and making her shiny again.
 
Aren't you required to pay sales tax when you buy and register a used vehicle? I don't believe you are, however, when buying as a reseller, with the intent to sell.
I am simply guessing here
 
I will agree with you in some way, but in other ways not. As long as you buy a car, register it, pay the tax on it, and insure it there is nothing illegal about if you decide you don't like it and want to resell it :xyxthumbs:

If you buying it are not doing any of the legal paperwork to transfer it into you name like you described, then yes it is certainly illegal.

Personally I buy my favorite types of cars, use them over the spring, summer and fall then clean them up over winter and sell them in the spring usually. I wouldn't say I do it for profit as much as I just get bored with stuff very quick and like having different stuff.


FUNX725 said:
Flipping cars is illegal!
(Around where I live it's called curbstoning)

To buy and sell cars, for profit, without a dealer license, is illegal in every State.
Ohio Law: To engage in the business of buying or selling vehicles, you must have a used car dealer's license.

It further goes on to say, in so many words, that:
-A new owner must register the vehicle; obtain a new title; and pay fees and taxes.
To not do this is tax evasion.

-When an invidual or business sells vehicles for profit they must also pay state and federal income taxes on their profits.
To not do this is tax evasion.

NOTE:
When a car flipper buys a car...he/she is the new legal owner.

Did I mention that flipping cars is illegal?!?!
Let me also mention that I sure wouldn't give away any "trade secrets" if I was flipping cars!!

busted.gif


Bob
Click to expand...
 
It depends on your State. Here is a quote from the Department of Motor Vehicles in Washington.

"Washington residents are allowed to sell as many as four vehicles registered in their name over a year's time without being licensed. Beyond that, a vehicle dealer license from the Washington DOL is required for individuals or businesses that engage in the following with either new or used cars":

1. Buying, selling, or leasing
2. Listing, exchanging, brokering, or advertising vehicle sales
3. Arranging, offering, soliciting, or negotiating vehicle sales for others
4. Sale of vehicles that are not titled with the seller's name

The key word in the first paragraph is "registered". This means the State has received the use tax (same percentage as our sales tax) and registration fees from the owner of the car. You can't buy more than four vehicles and "flip" them without them being registered in your name unless you have a dealers license which costs $750.00 with a $250.00 annual renewal fee.
 
Last edited:
Yeah the limit in Pa is 5 cars per year.
 
KMG said:
I will agree with you in some way, but in other ways not.
As long as you buy a car, register it, pay the tax on it, and insure it
there is nothing illegal about if you decide you don't like it and want to resell it :xyxthumbs:

If you buying it are not doing any of the legal paperwork to transfer it into you name like you described, then yes it is certainly illegal.
Click to expand...
That's what I was talking about.
If you're doing everything legal...Then it's not part of the connotation that flipping has come to be known by in many of today's circles.
KMG said:
Personally I buy my favorite types of cars, use them over the spring, summer and fall then clean them up over winter
and sell them in the spring usually. I wouldn't say I do it for profit as much as
I just get bored with stuff very quick and like having different stuff.

^^^I didn't see any part of this.^^^
"I Know Nothiiiiing" ~Sgt. Schultz
Click to expand...

:D

Bob

Paul Mitchell said:
It depends on your State. Here is a quote from the Department of Motor Vehicles in Washington.

"Washington residents are allowed to sell as many as four vehicles registered in their name over a year's time without being licensed. Beyond that, a vehicle dealer license from the Washington DOL is required for individuals or businesses that engage in the following with either new or used cars":

1. Buying, selling, or leasing
2. Listing, exchanging, brokering, or advertising vehicle sales
3. Arranging, offering, soliciting, or negotiating vehicle sales for others
4. Sale of vehicles that are not titled with the seller's name

The key word in the first paragraph is "registered". This means the State has received the use tax (same percentage as our sales tax) and registration fees from the owner of the car. You can't buy more than four vehicles and "flip" them without them being registered in your name unless you have a dealers license which costs $750.00 with a $250.00 annual renewal fee.
Click to expand...
Again...If legal and aboveboard: Not considered, by me then, to be "flipping".
Too much illegal activity going on nowadays.
Just one example: Lot's of flood-cars flooding the market.
 
FUNX725 said:
That's what I was talking about.
If you're doing everything legal...Then it's not part of the connotation that flipping has come to be known by in many of today's circles.


:D

Bob


Again...If legal and aboveboard: Not considered, by me then, to be "flipping".
Too much illegal activity going on nowadays.
Just one example: Lot's of flood-cars flooding the market.
Click to expand...

So do you flip a car every once in a while
 
I haven't done it so far. If you're talking about making a lot of money off it, nah. I've just seen a lot of bikes and cars that are mechanically okay but are in terrible condition to look at and can just use a little TLC to make everything look great again. For me at this time I'd love to pick up a cheap junker of a motorcycle and get it running right. Cost of bike plus repair if any under 1500. Get it looking mint and sell it for 2g's. Personally its not going to be multiple numbers or anything it would be used by me for a bit before I get rid of it again.

Keep depreciating assets to a minimum except for any love's that I have and put miles on the cars or bikes I flip.

That's the plan anyway. Gotta actually make it happen.
 
Here where I live it's not a problem , I can buy a car I see parked on the side of the road, yes I'd have to register it and pay sells tax to get it in my name then sell it.
With this said I don't think I'd make a profit of any kind by doing this.
We all have the right to by a car and sell it for any reason.
 
I flip 10-12 vehicles per year. I look for mini vans and suvs mostly (ive had alot of success with them) . I also look at how many miles on the vehicle, overall condition, mechanical problems are a big red flag for me( i almost never buy a vehicle that even hints at having engine or transmission problems. I do my own auto body repair and detail work so that save me money big time and i have some great mechanic friends . I always change the oil and have a service done on all vehicles i sale, detail them and away they go!!! Last year i made and extra 10,000 doing this. My biggest advice is avoid any vehicle with engine or tranny problem as that can turn into a bottomless money pit real quick.
 
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