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The act of flipping a car is simple. You buy an automobile at a low price and resell it at a higher price for profit. Well it’s not just that simple because the most difficult part is actually finding a good deal.
Using my prior experience, I ended up searching for a car on Copart.com which is not a sponsor of this video. Copart sells clean, rebuilt and salvage title cars that go through insurance claims. They do also sell donated vehicles that sometimes if you get lucky don’t have any problems.
The auctions are held 100% online so that means you can buy cars from different states
In order to bring this car to run mechanically sound, there are a few items that need to be done to this car. Let’s break it down. As previously mentioned, this model of the Ford Focus has a few common issues, the valve cover gasket will need to be replaced, along with the engine mount. This car will also need a fresh oil change along with a complete full detail inside and out.
The first item I decided to tackle was the valve cover gasket. In order to replace the valve cover gasket, the coils needed to be taken off.
The timing of this flip turned out very well. While I was repairing the car, I found out that my brother in law was looking for a cheap car to buy. So I decided that instead of posting the car up for sale for around 2.5k - 3k, I would just sell it to him for 2k and immediately secure the profit. And that is what I ended up doing. With the sale secured, let’s break down the cost, the true profit and the hourly rate.
I won the car for $675. After all the fees, I ended up paying $943. The total cost of the parts came out to $102.34. A detailed breakdown of the parts that I bought, you guys can find down in the description while you’re dropping a like on this video.
The car detail was $350 and the trip permit that I purchased for it was $34.
So all in, this car cost me $1,429.31 bringing my clean profit to $570.69. Based on that profit I walked away with a $71.34 hourly rate. If I would have waited for a buyer at even 2.5k, my profit could have been $1,070.69 and my hourly rate would have been $133.84. Not too shabby.
Here is the detailed breakdown:
Bought: $675
Fees: $268
Gasket: $13.98
Engine Mounts: $40.98
Spark Plugs: $10.39
Oil Change: $36.99
Car Detail: $350
Trip Permit: $34
Total Cost: $1,429.31
Profit: $570.69
Hours: 9 hours - 1 hour for filming
Hourly Rate: $570.69 / 8 hours = $71.34
My videos are not financial advice so please take it as a grain of salt. I hope you have a good laugh out of it as well. Enjoy the video and please share your feedback, like, and subscribe!
#finance #flippingcars