Will this car make money?

Two numbers you know, three quick picks. You get the profit, the most you can bid, and the price that breaks even.

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Car flip profit1 / 6

What would you pay, and what would you sell it for?

All-in to you, before fees and repairs.

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$

How this is calculated

  1. Total cost is what you pay plus the buyer fee (10 % at auction, about $300 at a dealer), transport, repairs, $150 of paperwork, $50 of listing, $5 a day held, and 12 % a year on the money if you finance it.
  2. Profit is the sale price minus the total cost. The return is profit ÷ total cost.
  3. Break-even is the sale price at which profit is zero.
  4. The max bid works backwards: the sale price less $1,000 of profit and the fixed costs, divided by one plus the fee.

Questions

01How do I make money flipping cars?

Buy under market, spend only on repairs that raise the sale price by more than they cost, sell fast. This calculator shows whether a given car clears your target before you bid.

02How do I start flipping cars?

Check your state or province's limit on private sales per year before you need a dealer licence, set a target profit per car, and run every candidate through a sheet like this one.

03Do I need a car dealer license to flip cars?

Most US states and Canadian provinces cap the number of vehicles a private person can sell per year; above it you need a licence. The number varies, so check your own jurisdiction's rules. This page does not state them.

04What is a good profit per car?

Set it from your time: divide the profit by the days held and the hours you spend. The profit-per-day line is there for that.

05Why does the max bid change when I change the sale price?

Because the bid is derived from the sale price: it is the most you can pay and still make your target profit at that sale price.