Need to make extra cash? ‘Flip’ a car!
Much like flipping a home, getting your hands on a quick fixer-upper and turning it over with minimal effort, for profit, is considered a successful car flip.
Bobby started flipping cars as a hobby a few years ago when he found an old, badly-scuffed vehicle covered in dirt in a relative’s backyard. But underneath the mess, he discovered a solid car that just needed a proper clean-up. “A steam clean to the interior, boot and engine revealed a stunner. I put it on Gumtree and it was sold in a matter of days”, he says.
Also read: Getting your car ready to sell
The financial reward from Bobby’s first flip got him thinking of the property analogy and after browsing Gumtree for his possible second flip, found a car for a relatively good price. He contacted the owner, saw that it simply needed some TLC, bought it after a discount negotiation and ended up spending the next two weekends giving it the once-over. The result: a car that made him a generous profit.
Since starting, Bobby has picked up a few secrets. “Appearance is half of your success,” he says, “Buyers looking for a new car, even if it is a used one, want it to look new”.
He suggests flipping cars that are in high demand, e.g. economic hatches in the R55k-R75k bracket, and spending no more than R3-4k. “Vehicles priced at R100K or more often requires financing on your part and can get complicated with paperwork,” he says. When inspecting a car, always take note of the service history and condition of the tyres and bodywork.
Bobby has also built good relationships with an independent workshop that can perform engine services, a tyre shop, a valet centre for body and interior cleaning and a dent repair shop to fix parking lot dings and scratches.
“If I’ve bought it at a good price and add expenses, I could sell it for a slight premium above market price purely because of the fresh appearance of the car”, he ends.
Source: Gumtree Auto SA