How To Flip Cars And Turn A Profit [Step-By-Step]

Are you that person everybody goes to for advice when it comes to buying or selling their cars? If so, maybe it’s time for you to own the role and earn from it.

You can make a lot of money from your passion for and knowledge of motor vehicles. However, there are a few things to know before starting a car flipping business.  

This guide highlights all you need to know about how to flip cars as a side hustle and become a successful car flipper in your local market.

An Overview of Car Flipping: A Primer

Flipping cars is a trade where a private seller buys used vehicles or undervalued cars, and sells them to make a profit.

You may also find car flippers selling off new cars or high-value cars if they find a good deal or high demand for them.

Flipping cars requires you to have much knowledge of the auto market in your locality, as well as good knowledge about cars in general.

This knowledge helps you find the best automobile prices and make the most valuable purchase that will, in return, earn you more money.

The goal of car flipping is to purchase undervalued vehicles at a low price and sell them for the highest profit margin possible. To do so, you have to research the best market value for the car you want to flip.

Sometimes, you may have to improve the car’s condition by making necessary repairs to its interior and exterior so that you can make higher profits.

If you love cars but you’re not too keen on searching for good deals at auto auctions or hosting a private party sale, then you can try other side gigs like renting cars instead.

Note that a car flipper is notably different from a car dealer and usually doesn’t work with a car dealership when selling vehicles to potential buyers.

How Much Can Car Flipping Earn You?

The average car flipper can earn anywhere from $1,000 to $3,500 in profit on one car.

This profit range can vary based on a range of factors, including the demand for the vehicle, your ability to negotiate for a higher price, the number of interested buyers you find, and the condition of the car.

Selling a car with a loan can also cut down the profit you can make on the sale, but since the buyer will likely pay off the car loan, it may be worth flipping it.

How Much Does it Cost to Flip Cars as a Side Hustle?

Getting started with car flipping isn’t cheap, but the rewards of extra cash that follow make it a worthwhile investment.

To begin, you’ll need some money to make your first purchase. This amount is the selling price of the first car you want to buy and flip.

Depending on the type of vehicle, this could be from $2,000 to $10,000 for used cars, or even more, for high-value vehicles. Kelley Blue Book will give you the best advice on car prices before you proceed to make a car purchase.

Over time, your profits on the cars you sell should be able to buy enough cars to make flipping cars your steady side gig.

In addition to the initial capital you’ll put down, flipping cars also requires some extra costs for auto repairs, refurbishments of used cars, and marketing and advertising.

To sell cars in some U.S. states, you may also need to procure a dealer’s license to avoid getting on the wrong side of the law.  

Where Can You Find Car Flipping Gigs?

There are different ways to find flippable cars. You can search independently, or work with an auto market platform to find deals.

Where to Independently Find Car Flipping Work

There are many ways to find car-flipping opportunities on your own. For starters, you can rely on word-of-mouth and networking with other car enthusiasts and professionals in your area.

Additionally, you can find cars to flip by referring to:

• Public dealer auctions
• Newspaper classified ads
• Salvage yards for potential restoration and detailing projects

Gig Economy Companies That Offer Car Flipping Work

There are no gig economy companies that are specially dedicated to offering car flipping gigs. However, car buyers typically find flippable inexpensive cars on platforms such as:

• eBay Motors
• Craigslist
• Carvana
• Facebook Marketplace

Other car trading platforms like Vroom and Autotrader make selling a car easier. They help provide services like car listing, pricing, and paperwork management. This makes them one of the best places to sell a car.

Why You Should Consider Car Flipping As a Side Hustle

Still wondering if car flipping is worth your time? Let these benefits convince you:

• It Can Be Quite Profitable: Many flippers attest to making good money from their car flipping projects if they do their research right and make good choices. Plus, written-off vehicles can also be sold for junk if you don’t find interested buyers after flipping the car.
• It’s Satisfying for Car Lovers: If you love vehicles, you’ll find it satisfying and exciting to work on them and significantly improve their market value. That feeling when you do a test drive once the cars are ready for the market is unbeatable.
• Get to Be Your Boss: You call the shots and make all the decisions when flipping cars. You can choose when you work, and how often you work; it’s a flexible engagement.

Problems With Car Flipping for Money

There are a few downsides to flipping cars that you may want to consider before testing the waters:

• It’s a Risky Business: If you don’t time your purchases and sales well, you may suffer a loss on the sale. You must understand the market properly before considering buying a car and flipping it. Also, you may be at risk of falling victim to scammers if you’re not careful with whom you do business with.
• Requires Tons of Research: You have to study the car flipping market well to learn the trends and your state’s laws and regulations regarding flipping cars. Before making a purchase, you’ll also need to pour through tons of car listings to find out if the necessary car information such as the Vehicle Identification Number, odometer reading, accurate seller details, etc., are all available.  
• Initial Investment Is Costly: The financial investment you’ll need to make to buy your first vehicle may be a lot. Additional costs like sales tax, car registration fees, dealership license fees, and other underlying costs may also reduce your profit.

Frequently Asked Questions

Can I Flip a Brand New Car?

Many flippers generally flip low-mileage used cars or undervalued cars, but, yes, it is possible to flip a brand-new car. There’s no limit to the type of cars you can flip; from rare exotic cars to old cars, specialty cars, and more.

Is Flipping Cars Illegal?

No, it is legal to flip cars in U.S. states. However, each state has a limit on the number of times in a year that you can buy cars. Look out for the laws for owning and selling cars in your state to ensure you’re compliant with them.