Classic car enthusiasts are many, but most are looking for classic cars for a reasonable price. And since this need is constantly increasing, you must take advantage of it. If you have extensive knowledge of classic cars and you know how to repair and fix them, flipping classic cars might be your way to make some good money.
But you must remember that getting into the marketplace of used cars and making money flipping cars needs patience, and you have to make connections, get right with the law, establish a budget, and much more. So, here, we set the top five steps for making money by flipping classic cars.
What is Car Flipping?
Classic car flipping is a brilliant and safe way to make money. The idea revolves around buying undervalued cars at a low price, fixing them, adding some value to them, then selling them for a higher price and making a profit. Flipping a classic car could be a very lucrative investment if you have the knowledge, time, and connections.
Read about the Facts About Classic Car Investment.
How to Make Money Flipping Classic Cars?
Get right with the law
The first step if you want to make money flipping classic cars is to get right with the law. You have to check the rules and regulations for car sales in your state because there’s a limited number of vehicles you’re allowed to purchase each year. For example, if you live in California, you cannot sell more than five vehicles yearly. But, if you want to sell more than the allowed number, you must apply for a dealer license, a “new and used motor vehicle dealer license.”
Buy classic cars at a low price
Finding a classic car for a low price is the first and most complicated challenge you will face. However, there are many ways you can discover some. For example, small local auctions have classic cars for sale every now and then. However, you must have the required skill and experience to make the right choice and decide whether the vehicle is worth the trouble.
Find out the Top 5 Classic Cars for Investment in 2022.
Another way to find classic cars for flipping is Craigslist. This website is an online marketplace for used cars in the United States. It might match you with many undervalued vehicles that would turn into a lucrative investment by some modification and repair work. But no matter how promising the deal may sound, don’t purchase until you make a complete visual inspection.
Read about the Mistakes to Avoid When Buying a Classic Car.
Spruce the car to add more value to it
This step is what will make or break your investment. If you do it right, the chances of making money flipping classic cars and finding a buyer will boost. As a first step, inspect the classic vehicle you purchased thoroughly and list all the mechanical repairs needed to make it function properly. You can either collaborate with a mechanic or handle the maintenance yourself if you have enough experience, saving you a lot of money.
There are many things to improve the car’s appearance and make it appealing, but here’re the top three tips to follow:
● Change the floor mats
Floor mats are a crucial part of the car’s interior, and most probably, any buyer will look at them before anything else. So, replacing the old mats with new ones is a must.
● Wash the car
Even though cleaning the car might seem foolproof, there’re many car parts that you might disregard.
- As a first step, wipe down the center console with a glass cleaner
- Clean the bottom of the dashboard
- Use a toothbrush to clean the tough spots that a wipe might not access
- Vacuum the car’s ceiling and floor
● Fix the headlight
Most old cars’ headlights are foggy or burned out. But a car’s headlight is crucial, not only for functional needs but for the car’s appearance. So, fixing it will make a significant difference.
The repair works mentioned above won’t break your budget and will dramatically increase the car’s value. So, they’re definitely worth the time and money.
Sell cars at a high price
After you’ve done all the repair works, improvements, and maintenance, the car is now certainly worth more than the initial price you purchased it. So, reassess the value by calculating the repair costs and adding the car’s worth. Add a profit margin of around $1,000 to $1,500, and leave some space for negotiation. For example, if you want to sell a car for $4,500, list it for $5,000, so you can reduce the price to anywhere between 4,500 to 5,000. You will get a reasonable profit margin, and the buyer will feel they got a great deal.
Find a Professional Auto Transport Company
You’ll need to ship vehicles from various states while in the car-flipping business. In fact, you’ll need shipping in two directions; your garage and the new buyer’s garage. Sometimes you’ll buy vehicles from dealers out of state, so you must bring the cars to you. Also, some buyers don’t know how to organize moving vehicles they bought from you online, and you need to recommend a trustworthy auto transport company.
Tempus Logix is your experienced shipping partner with over 30,000 shipped vehicles across the United States. The company can help you organize all sorts of auto shipping operations from point A to point B affordably and easily.
The bottom line
Flipping classic cars is a great way to make big money. But since the profit isn’t always guaranteed, it would be better to consider classic car flipping as a side business and not a full-time job.