Buy 'em, flip 'em, make $$$$

[Mav101]

There are 3-4 major vehicle buyer/resellers (Carvana, givemethevin, Carmax, etc.) , get pricing from all. Quick and easy


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Also vroom and driveway.

Eventually values will come back down, lots of used vehicles these online places are paying juice on every month.

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[Deleted member 5597]

You have to consider the cost associated with buying and flipping it:

1. dealer/admin fees
2. Registration/plate fees
3. Tax
4. Insurance until you sell it
5. Any other associated fees, misc items.

Is it really worth it? In my opinion, no. Not worth the hassle neither.

 

[gte105u]

You have to consider the cost associated with buying and flipping it:

1. dealer/admin fees
2. Registration/plate fees
3. Tax
4. Insurance until you sell it
5. Any other associated fees, misc items.

Is it really worth it? In my opinion, no. Not worth the hassle neither.

To make it worth while, you have to sell it for 5k plus over MSRP (assuming you paid MSRP and no dealer add items) in my opinion. That is in Texas where it's a 6.25% tax. Then you can make at least $1k profit. Anything less isn't worth the hassle and risk.

 

[Deleted member 5597]

To make it worth while, you have to sell it for 5k plus over MSRP (assuming you paid MSRP and no dealer add items) in my opinion. That is in Texas where it's a 6.25% tax. Then you can make at least $1k profit. Anything less isn't worth the hassle and risk.

Exactly!

 

[MakinDoForNow]

Fun paying capital gain tax on that $11,925 next Spring.


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Won't be that bad next spring if you made the required quarterly tax installment.

 

[MLowe05]

You have to consider the cost associated with buying and flipping it:

1. dealer/admin fees
2. Registration/plate fees
3. Tax
4. Insurance until you sell it
5. Any other associated fees, misc items.

Is it really worth it? In my opinion, no. Not worth the hassle neither.

For $1,000? No. But for over $7,000 it was very easy money. Here is my breakdown:

I paid $22,575 MSRP
$299.95 dealer fee
$1,530 registration fee (this is tax in GA)
>$100 in insurance (1 month only)
$350 seller fee
$2,225 approx capital gain tax

Total paid: $27,079.95
Sold for: $34,500
Profit: $7,420.05

And I got to drive it for 1 month to make sure I liked the Maverick enough to own long term since I was (and still am) waiting for my hybrid. There was literally zero hassle involved in the purchase or the sale of it. I auctioned it and a Chevy dealer was the high bidder, and they picked it up from my house. The $350 fee I paid covered their team doing every bit of the paperwork for ownership transfer.

Edit to add I did not buy this to flip it. I bought this for my dad, but he had an accident while the truck was in shipping and ended up not needing it once it arrived. So I drove it for a month and sold it.

 

[Bobinmi]

While its very American to buy something and sell it for a profit I still think in this case its wrong. Yes people do it with homes BUT typically fix them up quite a lot then sell for a profit. We are in a very unique time and for those that have money to buy cars meaning more than one then sell them ALL off for profit a large profit is the richer preying on the poorer in a very strange time . Yes its the richer foolish guy buying them used for big dollars but it stops the poorer guy from ever getting one in the first place for himself, . I say foolish as the Mav is nice for its PRICE RANGE but not so great at the super high price they go for used.

So...do you have any Amazon stock, or apple stock you bought in the single digits I can "re buy" off of you in the same single digits....since it is wrong to sell things for MORE than you paid...?

 

[gte105u]

For $1,000? No. But for over $7,000 it was very easy money. Here is my breakdown:

I paid $22,575 MSRP
$299.95 dealer fee
$1,530 registration fee (this is tax in GA)
>$100 in insurance (1 month only)
$350 seller fee
$2,225 approx capital gain tax

Total paid: $27,079.95
Sold for: $34,500
Profit: $7,420.05

And I got to drive it for 1 month to make sure I liked the Maverick enough to own long term since I was (and still am) waiting for my hybrid. There was literally zero hassle involved in the purchase or the sale of it. I auctioned it and a Chevy dealer was the high bidder, and they picked it up from my house. The $350 fee I paid covered their team doing every bit of the paperwork for ownership transfer.

Edit to add I did not buy this to flip it. I bought this for my dad, but he had an accident while the truck was in shipping and ended up not needing it once it arrived. So I drove it for a month and sold it.

I would have done this in a heartbeat ad well.

 

[Old Ranchero]

While I’m not a tax professional I do employ one. I believe Schedule D is what you’re looking for

.

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my wife and I have employed tax professionals since 1994. Not once has any of them so much as asked about any car purchases or sales. We have both itemized and gone strictly with standard deductions. Never been audited or heard from IRS in any way regarding this. We HAVE had to pay AMT (unfairly IMO) a couple times, but that's another discussion.

 

[Deleted member 5597]

For $1,000? No. But for over $7,000 it was very easy money. Here is my breakdown:

I paid $22,575 MSRP
$299.95 dealer fee
$1,530 registration fee (this is tax in GA)
>$100 in insurance (1 month only)
$350 seller fee
$2,225 approx capital gain tax

Total paid: $27,079.95
Sold for: $34,500
Profit: $7,420.05

And I got to drive it for 1 month to make sure I liked the Maverick enough to own long term since I was (and still am) waiting for my hybrid. There was literally zero hassle involved in the purchase or the sale of it. I auctioned it and a Chevy dealer was the high bidder, and they picked it up from my house. The $350 fee I paid covered their team doing every bit of the paperwork for ownership transfer.

Edit to add I did not buy this to flip it. I bought this for my dad, but he had an accident while the truck was in shipping and ended up not needing it once it arrived. So I drove it for a month and sold it.

That’s understandable. I totally understand your situation. I hope your dad is OK now.

I was actually referring to those who think they can just buy it, and flip them.

 

[Johnkn]

my wife and I have employed tax professionals since 1994. Not once has any of them so much as asked about any car purchases or sales. We have both itemized and gone strictly with standard deductions. Never been audited or heard from IRS in any way regarding this. We HAVE had to pay AMT (unfairly IMO) a couple times, but that's another discussion.

Whether your 'tax professional' asked or not is immaterial. Google '2021 Tax schedule D', look at Part 1. That's where short term CGs are to be reported.

The IRS just hired or is hiring thousands of new agents. One of their focus areas will be scrutinizing returns. People can choose to roll the dice and not report, they may be just fine.... It all boils down to the person's situational risk and reward....

I personally don’t care how people approach this, some don’t know what CGT is as evidenced by their responses.
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[Austun316]

I stated it as many here are not aware of CGT implications as evidenced by some of the responses.

1) why do you believe I’m upset?, and B) one of us in this dialog had the misfortune to pay CGT on the ~$150k ‘profit’ one the sale of one of our cars, and I’m betting it isn’t you....

And what “balls” does it take to sell a $30 truck? LOL




.

I stated it as many here are not aware of CGT implications as evidenced by some of the responses.

1) why do you believe I’m upset?, and B) one of us in this dialog had the misfortune to pay CGT on the ~$150k ‘profit’ one the sale of one of our cars, and I’m betting it isn’t you....

And what “balls” does it take to sell a $30 truck? LOL




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Not sell flip.. Grow a set

Plenty of tax loopholes out there.

 

[Johnkn]

Not sell flip.. Grow a set

Plenty of tax loopholes out there.

Flipping is selling, exactly what “balls” does it take to Flip a $30k truck?

Explain the applicable tax Loophole for us....

.

.

 

[Austun316]

Flipping is selling, exactly what “balls” does it take to Flip a $30k truck?

Explain the applicable tax Loophole for us....

.

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Shhh!!

Does your last name end in stein feld or mann

 

[stoptothink]

While its very American to buy something and sell it for a profit I still think in this case its wrong. Yes people do it with homes BUT typically fix them up quite a lot then sell for a profit. We are in a very unique time and for those that have money to buy cars meaning more than one then sell them ALL off for profit a large profit is the richer preying on the poorer in a very strange time . Yes its the richer foolish guy buying them used for big dollars but it stops the poorer guy from ever getting one in the first place for himself, . I say foolish as the Mav is nice for its PRICE RANGE but not so great at the super high price they go for used.

So the "poorer guy" needs a brand new truck? The reason why most "poor" people in this country remain so is because they have this poverty mindset; make better decisions (do you really need a brand new truck?), get in the game, and be the rich person. There are pros and cons to every economic system, this is one of the "cons" to capitalism (IMO, it isn't a con, but you are welcome to your opinion). Nonetheless, it has created more wealth and brought more people out of poverty than all other economic systems combined.

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