Strange, I know, but some of the 100k cars, like Merc S, some Jags, RRs, etc. are cheap now. What are thoughts on this??
Strange, I know, but some of the 100k cars, like Merc S, some Jags, RRs, etc. are cheap now. What are thoughts on this??
Where are you going to buy them for under market value?
What are you going to do to them to sell them for more than market value?
Old lux cars can be hard to sell. Anyone who really cares about the lux name does not want an old one and anyone looking for cheap transportation overlooks the lux brands because of perceptions of high repair costs.
I suppose anything will sell, eventually, but it seems to be more important to buy them at a "right" and low cost initially.
They’re cheap to buy because they are expensive to fix.
Half your market only cares about the cheap part, can’t / won’t buy an expensive refurbished one, and isn’t planning to keep it when it really breaks anyway. They’re ballin’ on a budget, and they’ll just move on to another one until it really breaks, too.
At least another quarter of your market is capable of fixing one themselves, and isn’t looking to buy yours and pay a premium after you’ve fixed it up.
So to me, it’s not a solid business plan, except as a way of keeping yourself in a nice car one at a time.
By the time you clean them up they'd already depreciated even more LoL.
After a year with an E55 AMG and the fun trying to sell it, I would say you would be 100x better flipping Camrys. Not as fun, but you would actually make money.
The only guys who are making real money on exotics are the storefronted dealers with a large bankroll doing trade-ins or the guys parting out wrecks.
But hell, what do I know. Buy a few X types and double your money!
Definitely money to be made in cheap highend stuff, but a lot more risk. You have be willing to jump on the cars no one else wants to touch, then be able to fix them cost effectively. Another way is you have an ‘in’ with estate companies, mechanics shops, etc where you get called on stuff before it hits the market.
The highest risk I took and ended up selling was a 993 targa and I did very well on it, but that’s the only ac 911 I ever sold. That’s one of the problems with buying what you like....if you’re like me you end up keeping most of them.
The biggest risk I almost took was a Testarossa that needed a trans rebuild. That one could have ended ugly or been a real money maker. I got beat out on it by maybe 30-60 minutes. Another one was a very original 308 that had been sitting (enclosed) and needed to be brought back. I missed it by minutes. Those bring me to another point...you need to have the money, be able to act fast, and not ask 100 questions because they’ll just move on to the next buyer.
However, I do agree with 93gsxturbo on that it’s easier to make money other ways. Vintage 4x4s come to mind....great money in those right now when you can find the right deals.
By vintage 4x4s, what models are you talking about?
K5 Blazers, k10 Chevy shortbed pickups, old suburban, early broncos, fj40s (I bought a bunch of these and did well), 70s Ford shortbed 4x4 pickups, cj Jeeps, Scouts, etc. you get the idea. Decent drivers with tasteful mods usually do well, but the key is the buy them right of course.
I don't do this for a living or anything....I’m just a car whore that tries to get good deals, so if/when I do sell I’ll hopefully be ahead.
Hardest part is no rust (or very little)
In reply to markwemple :
Yep, that’s tough especially in your area. It’s even hard to find completely rust free stuff here in TN. I’m restoring a 75 k10 right now and finally ended up getting a cab out of Nevada.
I got luck on my Range Rover Classic. A local guy parted out one and I bought a rust free skeleton for $500.
Cotton said:In reply to markwemple :
I’m restoring a 75 k10 right now and finally ended up getting a cab out of Nevada.
Sorry for hijacking, but what kind of market are you seeing for older 4wd squarebody trucks? Asking for a friend.
Very good point about vintage trucks. Everyone likes a truck, everyone's grandpa had a C10 or a F150. With current trucks being so expensive and fully of nanny items, the want is strong for something from the 70s or 80s.
Hottest of all are probably the 68-72 Chevy short box 4x4s and K5 Blazers, the 2WD ones are pretty popular too, huge engine bays take modern power really easy.
Short box trucks are going to sell for more than long box trucks. 4x4 more than 2WD. Big engines more than small. Rust Free more than reworked. Higher option packages more than stripper models. Although the option packages are more like chrome trim and less like 8 speaker stereo systems.
IH Scouts appear pretty hot right now. Jeep CJs (any wrangler, really) is a safe bet. FJs, especially 60s and 62s are on the up as well.
The guy who purchased my friends land cruiser, said he drives to the southern states and buys up land cruisers, scouts, broncos, k5, and old wranglers, then hauls them back to socal and sell them for twice as much after he cleans them up. Said he made more doing it than his normal job.
This was probably 10 or 12 years ago
I'd say the best area to start there would be something that's starting to climb off the bottom of the depreciation curve, but hasn't hit "obvious" collector status. The '67-'72 Chevy trucks are a good example, and it looks like prices on the later square-body truck are starting to climb as the next option.
Other stuff that's starting to edge up: Some '80s muscle cars are starting to go for real money in good shape. And some of the more desirable cars from the '90s import performance scene. Mk IV Supra prices are a bit crazy, and MR2 Turbos aren't cheap either, but there are still bargains to be had with Japanese performance cars from the era. E36 M3s also seem to have started climbing.
Luxury cars seem to depreciate faster and have a longer recovery time. I think the buyers have a somewhat different mindset there. The thoughts of the typical buyers at different points in the cars' lifetime would look like this for a good performance car:
But for a luxury car, depending on what it is, the mentality may be more like this:
STM317 said:Cotton said:In reply to markwemple :
I’m restoring a 75 k10 right now and finally ended up getting a cab out of Nevada.
Sorry for hijacking, but what kind of market are you seeing for older 4wd squarebody trucks? Asking for a friend.
Excellent for a short bed. Options/color/condition etc all play into it, but right now those are strong. Long beds do okay too, but the short beds, either fleetside or step side, are killing it.
Grand Wagoners, the old ones, are a real hot market currently. You're talking $10k for roooough ones and $50k for mint ones
In reply to NickD :
Yep, my buddy bought one at a garage sale of all places for around 2500. He detailed it, did exhaust, headliner, tires, and got around 13k.
+1 on trucks. If you want to get creative hunt Kijiji and bring back random old stuff that never came here
The key to flipping (in my not-vast experience), is to flip things that there is a large market for, and large customer-base for.
Buy Camrys and Accords and Civics for below market value, flip them for $1k more.....do it once a week.
Try to flip a 1980s Jag....you'll also make $1k.....but once a year!
And to think at one point I had 4 FSJ's 3 Grand Wagoneers and a cherokee. I didn't pay more than a grand for each. Where are those deals now.
If you can figure out a buisness plan that involves Biturbos you can make anything Work. I say go for it.
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