How you can make money flipping cars

so basically don't do anything ed says a [Applause] [Music] little while ago mr. edy as I'll call him did his video on how to be a shrewd negotiator and I laughed because in watching it I'm going mad and that is all the things I tell everybody not to do like totally the wrong things in the wrong strategy to have when you're buying a car and that's what all my customers come to me trying to do thinking oh yeah I can steal this car I found this car in Craigslist I'm like no that's a scam there's no such thing as a cheap Ferrari and of course everybody has the dream of buying the cheapest one and then it ends up costing them more and all that Ed's strategy is a great way for for people to pay too much money in the long run for mediocre cars thinking that they're gonna make a lot of money so my advice to everybody is always buy the best car you can within your budget so if you buy the best car on the market chances are it's been well taken care of you're going to enjoy it if you take care of it as well you'll get your money out of it I'll never say investment because everybody thinks cars are investments they're not but at least you'll get a decent return because there's always a buyer on the market for the cleanest car on the market so basically don't do anything Eadie says just buy the best car you can unless you like riding around and salvage title Lamborghinis with eight check engine lights and noticeable paintwork in your search for a top of the market car or the best example you can find a non ed boolean example what do you really look for most of the questions I get asked are how many owners does it have and really who cares how many owners it had as long as they serviced it properly I've seen documented one-owner cars there were absolute turds because it was the wrong owner and I've seen seven eight nine owner cars that traded hands between collectors and their fantastic cars so what you really to ask is okay what kind of service history is there and not just that but what recent service is there because while 20 years ago service is good for the provenance of the car two years ago service really affects what condition the car is in now and how much money you might have to put into it as soon as you buy it you certainly want an independent pre-purchase inspection or PPI if you don't know how to do one of those yourself which most people don't even though they think they might but a lot of people think they're racing drivers as well and need to be dissuaded of that opinion I will say ed is right about one thing you buy cars that maybe have some holes in their history and aren't presented properly and you fill in those holes you detail the car you present it better you take better pictures you get it serviced and up to snuff for the new buyer so there's really no excuses as I like to say and that way you make people feel comfortable about the car and they're willing to pay more money for that level of comfort and if you're doing this over and over again and you have a level of expertise within one niche people will start coming to you for that car and probably for free advice too which will take up the majority of your time but the other question I get asked a lot is how to get into the car business or how do I start buying and selling cars or whatever of course everybody wants to be a car flipper most people that do it for hobby all think that they want to do it for a living oh yeah I'm gonna quit my job and just do what you do it's amazing Mike yeah it's it's still a job but yes sure it's amazing but it's a lot harder than it looks you know we always say that we love what we do if it weren't for the clients I guess you could also say we love what we do if it weren't for trying to maintain Italian cars you're trying to resell probably why I do mostly Porsches but a lot of people come to me and say how do I get into the car business so I have kind of a standard formula or a standard answer that I give people and I don't know if anyone's followed the advice or not but I've gotten a lot of free lunches out of it not everybody should be in the car business there's a lot of competition there's a lot of monsters there's a lot of dirty competition and unless you really really know what you're doing you're going to get screwed but nobody listens to that so then I have to tell them how to do it I usually start with asking them is there a car you love or is there a niche that your particular expert in because in order to do well at something you have to know your product so I tell people pick a niche pick a car that you absolutely love or that you are committed to learning about if you say I'm gonna do Vipers I love Vipers I don't know why you would say that but if you love Vipers you learn what their quirks are what most cars need what you're gonna look at when you buy the car in terms of maintenance expense common problems things like that because if you don't know what those problems are you're gonna get into a world of hurt very quickly for example if you're buying a portion you don't know what an IMS bearing is then you should probably learn if you are buying Ferraris and you don't know that you can reset the clutch snap reading then you might get into a world of hurt or if you're buying you know an e46 m3 or add stir and you're not familiar with the subframe failures or the rod bearing issues then you know maybe you're getting in over your head if you're buying Porsche gt3 s and you don't know what a DME readout is you shouldn't be buying forced to gt3 S or you should but you'd be at bullion because you'd buy one with a whole bunch of over revs and paintwork and not care and probably enjoy the car more than the people that are all concerned about the number of over EPS so pick a niche that you know a lot about and in doing that not only are you going to learn the issues but you're also going to learn the market you're gonna learn the marketing strategy and you're gonna learn what the buyers want so if you are buying and selling good examples then you have residual leads from one you sell so if you get another one you already have some people interested the other advantage is you start to get to know your vendors you know where the best place is to buy parts maybe make specific salvage yards and you get to know your local service shop very well and you may start to get better deals because obviously if you're buying cars to resell you're going to use the ad bolian trick you're gonna buy cars that are not marketed well not photographed well maybe not up to date on service that people need out of quickly you're gonna use your shrewd negotiation skills to buy a car for Less cents worth and then you're gonna put some money into it as a car guy I guess it's it's actually not too difficult to do this I mean it is fun to chase down cars you like and I've been able to do it not from a business perspective but just in setting up a challenge for myself and saying hey I want to go out and buy this particular car so I got into Fox Body Mustang SSPs a couple years ago and I said I really want to go out and buy a used cop car because I collected Caprice 9si ones and all sorts of different police livery when I was a kid and stuff like that I loved cop cars so I wanted to go out and buy a five liter five-speed Mustang SSP that was restored to in-service spec I joined all the forums I joined the Facebook groups I set a watch up on eBay I just started researching as much as I could and I am no expert but goodness gracious did I learn a lot about the SS Peas what they were going for and so in doing that in about six months I was able to identify what the market was why some were going for ten and some were going for twenty that looked exactly the same and determine when a deal came along whether or not it was a good car and I bought a Texas Highway patrol car and loved it and ended up selling it to a Fox Body collector friend of mine to fund my ridiculous cannonball car and ended up buying another California Highway Patrol car because I guess the bug just bit if you set your mind to it and pick a niche and really learn about it it's relatively easy to learn that product and start to know your way around the market so you can at least buy and sell a few cars your personal collection and not get hurt too badly but if you want to try to make it a business you can see if there's enough volume there if there's viable margins to make it worth your time [Music] [Applause] [Music] [Applause] [Music] [Applause]

Channel: VINwiki

Views: 551,596

Keywords: Car Flipping, Flip, Flipper, Flipping, Exotic Car, Buying, Selling, Porsche, 911, 993, 996, 997, 991, gt2, gt3, ruf, lamborghini, ferrari, ppi, advice, how to, vinwiki, car stories, Doug Tabbutt, Flat 6, profit, dealer, m3, bmw, dodge, viper, clutch snap, ed bolian, tips, educational, invest, make money, cars, top gear, challenge, 9c1, police car, F430, 360, 365, Berlinetta Boxer, turbo, rare

Id: EjvG-RK1Kg8

Length: 9min 20sec (560 seconds)

Published: Thu May 17 2018