Your thoughts on flipping classic cars?

[TheJDMan]

I'm curious what you think about these people that are buying up classic cars on the cheap just so they can turn around do some fluf and buff and jack the price up to flip them. Personally, I don't feel these people are real car guys they are just interested in making money and cars are just a commodity to them. The net result is that I see the price of classic cars going up rapidly and the true car guys are having difficulty finding nice project cars at reasonable prices.

[rchaskin]

I call this the Barret Jackson effect....

It also makes everyone with a car from the 60s - early 70s think their car is worth a fortune...

[WallaceMFG]

I agree, they mostly do it for the money. When all the auctions were in town a few weeks ago I was at many of them, and I'm staggered by the amount of cars that are listed as "excellent" that I would be embarrassed to show up to a car show with. They do as little work as possible to make them look nice, hope for somebody who doesn't know what they're looking at to show up, and take their money.

[T_Raven]

Anything is only worth as much as you can sell it for. It doesn't matter what people ask, or think they can ask for classic cars and trucks. That doesn't dictate market values, what buyers are willing to pay does. When I was young and broke I use to get annoyed with high priced cars. Now I'm older and I've bought and sold plenty of cars. I now get annoyed with people trying to tell me what my stuff is worth. I have 5 cars on cl right now at prices most people wouldn't pay. If they don't sell, I'll keep them. I won't sell them for less than what they are worth to me.

As far as "non car guys" buying stuff just to flip it, they'll get a reality check if they are way off base. If someone pays what they want, then good for them and the buyer.

[Build-It-Break-It]

It's a business like any other. People don't get mad when they're paying $6 bucks for coffee or $75 for levis that cost $1.00 to make. Anything you buy is going to have high inflation so we can't be mad at someone trying to make a living Selling used cars. Be mad that gas has been $6 a gallon for years but now is only $2. Why can't gas be affordable all the time would be a better topic. As long as people keep paying high prices for ANYTHING people will continue to sell and inflate prices.

[andrewb70]

Threads like this are always kind of funny to me. People seem to get so offended when someone takes a car, or house, or whatever, fixes it up, and sells it for more. This is what we call creating value. It is no different that a restaurant buying produce, cooking it (flipping it) and selling it to feed its customers. Or a any other company that buys raw material, adds labor and capital, and creates something that has more value that the sum of the inputs. This is called creating wealth!

So why is it any different if someone sees a potential in the market and starts with an old car (raw material), adds their labor and capital, and attempts to sell it in the market for something greater than the sum of the inputs?

Andrew

[NJSPEEDER]

Classic cars are very niche market. Everyone I have met that has found any success dealing with them has been passionate about cars. It's not batteries or some other easy to find commodity that all you do is broker a good price and distribute. It requires specific knowledge that no one is going to pick up in passing. Knowing the little stuff that distinguishes between two cars that largely look the same but one is worth thousands more. I'm sure everyone has seen the local used car places that tried to get on the muscle and classic car trend and wound up losing their asses. It takes more knowledge to work special interest vehicles than it ever will to peddle a second hand Accord.

[BMR Sales]

Threads like this are always kind of funny to me. People seem to get so offended when someone takes a car, or house, or whatever, fixes it up, and sells it for more. This is what we call creating value. It is no different that a restaurant buying produce, cooking it (flipping it) and selling it to feed its customers. Or a any other company that buys raw material, adds labor and capital, and creates something that has more value that the sum of the inputs. This is called creating wealth!

So why is it any different if someone sees a potential in the market and starts with an old car (raw material), adds their labor and capital, and attempts to sell it in the market for something greater than the sum of the inputs?

Andrew

Good Post! Most people that Flip cars also play with cars. The only guys I don't like are the deceivers - guys that purposely hide a problem.

I flip a car or 2 a year. I've only had 1 problem and I should have never sold to him!

[snappytravis]

For sure, they saw one go for 100g on bj and think that there car is worth 50g, If a guy can buy it and sell it and make some money good for him,, I don't think the deals are like they were years back. I use to buy and sell to support the project I wanted to keep, chevelles, Camaros and etc. There are true car guys and then there are car salesman just trying to make a buck.

[TexasT]

It's been going on since the horse was retired and cars got a foot hold. It even happens in housing. Look at all the television show on flipping houses.

Cash is king on both commodities.

If you like fooling with cars like I do, be the first on the scene with the cash and you get where you want to be.

[snappytravis]

I actually have probably made more money selling the $1500-3000.00 beaters. The bad thing of classic cars is there not a necessity. You have to have a guy with cash. The bank doesn't like to loan on them from what I have seen. The beaters do nothing to them and make a little cash. The hotrods spend all kinds of time on them fixing some other guys junk and make the same amount.