When asked if it is a good idea to flip classic cars, the answer is not really. It’s not a 100% solid no, but you better know what you are getting yourself into before jumping into it. For instance, it is almost guaranteed that you will not get the money you put into a classic car back out of it if you plan on doing a full restoration. That’s still not to say there isn’t a way to make a buck or two.
A lot of people have made good money buying and selling classic cars over the past few decades. A common way to make money can actually take years to accomplish. You buy a classic car today in hopes that it will increase in value over the years to come. Take a 1971 Hemi Cuda Convertible… original price, just over $4k. Today they go for millions of dollars. Sure, there were only 11 made, but you get the point.
Another way people make money on classic cars is to buy and sell them quicky without investing much more than the asking price. Buy it at X and sell it at Y and hopefully Y is greater than X. This is called flipping.
The key to flipping is getting a classic car or truck for a bargain. And where can you find a bargain? Well, that is where the know-how comes in. You certainly need to know the valuation of vehicles you are looking at. Hagerty has a great valuation tool you can use to get an idea of how much a collector vehicle is worth depending on its condition.
Locating a bargain classic also takes some luck and skill. You certainly are not going to find any deals at car shows. These owners baby their prized possessions and almost always think their collector is worth more than it actually is.
To find a good deal, you are going to need to do some research. Typically, “barn finds” are the best place to start. Problem is, finding that barn. You will need to know the farmer or rancher that has a vehicle stored away, indoors preferably, and is looking to clear out his space. If you don’t know that person, you will need to do some networking in hopes of locating something worth flipping.
Another technique for finding a bargain classic takes a bit of leg work and networking as well. We call it garage hunting. There are tons of classic car restoration projects happening in garages all over America. The trick to getting a good deal is finding one that has been abandoned. Restoration projects that have been given up on are great places to get a good price on a classic car. Just make sure all the parts are there before striking a deal.
Last resort, you can look online for classics for sale or attend an auction or two, but this is where you better know what you are looking at. There are countless stories of guys buying a classic car or truck because of how it looked. Maybe it even ran decent, but what about all the things that matter? Is it matching numbers? Is the paint original? What has and hasn’t been restored? What parts are worn out and need to be restored before it gets sold? There are tons of variables that need to be addressed before it is ever a good idea to make a purchase.
We aren’t going to get into the nuts & bolts about how to assess a classic car’s condition. That in of itself takes years to learn and sometimes it also relies on your instincts. Only you will know if you have what it takes to flip a classic car for profit, and we wish you all the luck if you choose to do so.
FAQs
It's not a 100% solid no, but you better know what you are getting yourself into before jumping into it. For instance, it is almost guaranteed that you will not get the money you put into a classic car back out of it if you plan on doing a full restoration.
Is flipping classic cars profitable? ›
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.
Can you make money fixing old cars? ›
If you plan to restore the car and then sell it, the process might be a good investment. Restored classic cars can easily sell for tens of thousands of dollars, depending on the make and model.
What is the most profitable car to flip? ›
Look around and see if you can buy these used cars to flip.
- 1. Japanese Cars. If you're new to the flipping game, Japanese economy cars are a great place to start. ...
- Classic Cars. Cars from the 1950s and 1960s are the reason so many people turn out for car shows. ...
- Minivans. ...
- Pick-Up Trucks. ...
- SUV. ...
- Pre-War Cars. ...
- Sports Cars.
The answer to these questions is, Yes Car flipping is legal, and yes and the process has become much more straightforward and profitable with regular local auctions and the introduction of car auction websites. An average car flipper can profit around $1200 per car (ridester), which is quite alluring!
What vehicle flips the most? ›
Vehicles that are tall and narrow are more susceptible to a rollover due to a higher center of gravity, which puts vehicles such as SUVs, pickup trucks, and vans at greater risk of a rollover crash.
How much does a car flipper make a year? ›
How Much Can a Car Flipper Make? On average, you could make about $1,200 per car, but the amount varies based on your success. Most entrepreneurs who flip vehicles do so alongside their full-time job. If you only flip a few vehicles annually, you may not have a considerable overhead cost.
How to start flipping classic cars? ›
The best way to get started flipping classic cars is to look at the trade websites like Hemmings, Dyler and ClassicCars.com. Work your way backward by looking for vehicles that have already been restored and comparing the work performed against the seller's price.
Where can I find classic cars to flip? ›
Other ways of finding classic vehicles include placing a classified ad in the newspaper or scouring auto salvage yards.
How to get rich flipping cars? ›
The key to car flipping success is finding and buying undervalued cars at a low cost and selling them high. That means searching Craigslist, Facebook Marketplace, eBay Motors, newspaper classified ads, and auctions to find a good deal. Keep your purchasing budget low and also budget for any repairs the car needs.
#1 - Honda HR-V
With an average of just 34.4 days on the market, the Honda HR-V leads the pack as the fastest selling used car. Priced at $24,496 on average, this compact SUV offers a winning combination of versatility and affordability.
What car is least likely to flip? ›
Some of the least likely vehicles to rollover include the:
- Mazda RX-8.
- Acura TL sedan.
- Mazda3 compact sedan.
- Volkswagen Beetle convertible (the newest model)
- Hyundai Tiburon sports coupe.
Flipping cars has been a side hustle for years as a way to make a little extra cash. But in an era of rising used car prices and online vehicle ordering, the game has changed — and the profits are much higher.
Do you have to report income from flipping cars? ›
If you do turn a profit, you'll need to report it to the IRS on your 1040 Schedule D form, either as a short-term profit for cars owned under a year or as a long-term profit for cars owned longer than a year. After the sale, you'll also need to consider other financial responsibilities. These include: License plates.
Can I live off flipping cars? ›
A budget of $5000-$15000 will allow you to find cars that are in better condition that you can still realistically make a 10-30% profit margin from. So, if you are able to flip a few cars each month, you'll be approaching a full time income, making it quite a profitable business.
Are old classic cars a good investment? ›
Additionally, collector trends are unpredictable, so you can't bank on a specific model dramatically increasing in value. That said, classic cars do often increase in value and are one of the better performing collectibles out there.
Can you make money with classic cars? ›
Sell Your Car
The sale of a classic car typically means a profit for car owners, especially if you haven't needed to invest much in restoration or upkeep. If you're looking to take a more hands-off approach to earn money from your vehicle, selling your car could be the simplest solution.
Do classic cars go up in value? ›
Key Takeaways. For the automotive enthusiast, one way to diversify an investment portfolio is to start collecting classic cars. Most cars lose value immediately after they are driven off of the dealer lot, but classic cars gain in value over time, due to rarity, performance, or special attributes.
Will classic cars make a comeback? ›
In recent years, classic cars seem to be making a comeback. Whether you're driving down the highway or walking through your local car show, it's impossible to miss the eye-catching automobiles that harken back to an era of style and freedom on the open road.
