Stripping/Flipping modified cars for profit.

OK guys been thinking this over for a few weeks now.

Is there any sort of profit to be made flipping modified cars by selling the modifications and returning them to stock.

The reason I ask is the Viper, I could easily get the actual cost, to me, of the car down under say 33-34K by selling off all of the modifications and returning the car to stock.

That is at ~40% new cost sale of the modified pars and with a return of the stock parts when appropriate. Clearly you would need to buy well modified cars with a good aftermarket support structure. I could easily sell it in stock condition for 48-53k. Plus it will sell 10x faster in stock form.

Not thinking of actually doing this to the viper, unless my aero/suspension parts push me into a class that is way to fast for the car to run with some frequency and it is easier to run in SS form.. But......

Depends on the car... sounds like you've found an example that works.

My Miata would probably work for this... if i had the stock parts. I could still do it if i tracked down the stock stuff if i cared enough, but it's not near the return on investment as you're showing there.

What i have had success with is just parting out and crushing modified cars. Often they're worth substantially more parted out than selling at a whole, and i have no qualms over doing such a thing.

How good is the market for used performance parts? Tread softly, my friend.

Just trying to expand the type of cars that I buy. Modified cars come up quite a bit under the market price just due to taste or implementation.

So sell the bits and recoup the value in the car seemed like a win in my book.

It sounds good in theory, all you can do is try. Hopefully you'll come up above even. Yes, theoretically, modified cars sell for average prices, but how much will you spend on stock parts and how much will people be willing to spend on those used performance parts?

All you can do is try.

Except that, usually, used performance parts are pennies on the dollar.

If you think it is so, go with the courage of your convictions and make it so. Worse case you don't make money but learn something that will serve you in the future.

Parting out cars can be a good source of income, however, there is more time and effort than you think.

Had an acquaintance that ran a programing business. He would always hire a student/intern. He would also always have some random old car in the back of the shop.

The car was being parted out on e-bay. When a part sold, the kid had to pull it off, package and send it as part of his duties. The guy did not really care about the value of the parts, he made money on postage and filled time gaps on his students schedule. He claimed to be $$$ ahead.

Apexcarver wrote: Except that, usually, used performance parts are pennies on the dollar.

this is so true

i flip a lot of cars a year the secert to flipping cars is to do it fast if that means making $100.00 and turning that car in a day so be it. any car i have with mods sits it takes a special buyer and removing them and replacing the parts most of the time is not worth it

moded cars most always sell below market value or the owner sits on them forever. i stay away from them most of the time they are more of a pain than they are worth.

when someone talks to me about doing mods to their cars i tell them make sure they keep the parts they replace so if they decide to sell they can put it back to stock.

i like buying unmolested examples of cars they just sell better for me

SHO guys have been doing this for a very long time.....depends on the demand for said modifications, effort to replace back to stock, and are you still making money after you factor in your time. Basically, I'd then stick with one make/model when doing it.

cutter67 wrote:

Apexcarver wrote: Except that, usually, used performance parts are pennies on the dollar.

this is so true i flip a lot of cars a year the secert to flipping cars is to do it fast if that means making $100.00 and turning that car in a day so be it. any car i have with mods sits it takes a special buyer and removing them and replacing the parts most of the time is not worth it moded cars most always sell below market value or the owner sits on them forever. i stay away from them most of the time they are more of a pain than they are worth. when someone talks to me about doing mods to their cars i tell them make sure they keep the parts they replace so if they decide to sell they can put it back to stock. i like buying unmolested examples of cars they just sell better for me

So I am limited to 5 cars out here in California unless I want to get a bond and a whole bunch of other crap. I personal deal in the super upper end, people who bought cars they never should have and now need to get out, and will take way under market for speed

There are just a ton of very high end modified cars that cross my desk and the supply of good high dollar stock cars is way down.

Things like 911's with wheels, aero kits and wings. Not really performance mods per say but easy to transfer cosmetic ones.

Just needed a quick double check.

So, in esscence..

You are saying that you would buy a modified car (that is devalued from the modifications)

Remove and sell bling-parts (pennies on the dollar here)

Buy and install the stock stuff (can be expensive)

and have room for profit on the deal after that was said and done (comparitive value difference modified vs unmodified being enough to make up for the changeover back to stock?)

Is the value difference enough to justify the work and buying the stock parts? (while still granting you a profit to make the whole endavour worthwhile?)

I guess it would depend... what the modifications were, what the parts cost is, if you can really get 40% for the used parts, etc...

I would guess it would be a really close case by case basis..

i play with high end cars also and they are even harder for me to move if they were moded at all and they tie up a lot of cash. i have been sitting on a Z8 for 2 months now and cant move it has 4200 miles on it. i had a Vanquish for 7 months and only made 5k on it. i would rather deal in the 5k car range. for oct i have moved 14 cars and made 6k on them so far and i have a full time job.the corvair and bradley i had for two weeks and made a 1k on them.

i do a lot of traveling up and down the east coast for my job. i always carry cash with me and i stop if i see a car sitting. i know route 1 like the back of my hand i dont travel the interstates.

i have been doing this since i was 15 years old and i love it. People ask me all the time why i dont open a car lot and i tell them then it would be work and all the fun would be over.

Apexcarver wrote: You are saying that you would buy a modified car (that is devalued from the modifications) Remove and sell bling-parts (pennies on the dollar here) Buy and install the stock stuff (can be expensive) and have room for profit on the deal after that was said and done (comparitive value difference modified vs unmodified being enough to make up for the changeover back to stock?)

So I am mainly looking at cars with easy to remove modifications, wheels (HRE's are not cheap), aero kits (Factory wings, that sort of thing). I have a pretty big set of contact to buy the stuff.

Really just trying to leverage the cost differential and try and make a bit more cash on each deal. Plus it opens up a lot more cars for me to buy.

If I was not limited to 5 cars different ball game. I would buy corolla's/camrys detail the heck out of them. Do some basic maintenance and sell them in a afternoon for cash.

wearymicrobe i have a friend who moves a lot of cars in LA and has been doing for years and the DMV has never bothered him. he pays the taxes on them and the fees. he told me the law states if you buy one car in cali with the intention of reselling it you need a dealer lic. in Pa it was 8 for a long time but as long as you paid the taxes and fees they never said anything.

i do have friends now with car lots and i run some titles thru them if its cars i just send to auctions which i do a lot of

Really depends on the vehicle. I was able to pay for college by doing exactly this with DSMs and Kawasaki Jetskis.

DSM stock parts are free or damn near. Aftermarket stuff still brings 50% of new or better.

Example, buy a modded DSM with the following: 20G turbo, 650cc injectors, FMIC, DSMLink, 3" turbo-back, gauges, aftermarket wheels, AGXes and Pro-Kits. (99% of modified DSMs are similar to this car)

Sell the following parts at the following prices:
20G Turbo $500
650cc injectors $200
FMIC with aftermarket BOV and piping $300
DSMLink with EPROM ECU $300
3" Turbo-back, $200
Gauges $150 (say they are nice, GReddy or Defi or similar)
Aftermarket wheels $400
AGXes/Pro Kits $400

Install the following parts and pay the following prices. 14B Turbo $75
Stock injectors $40
Stock FMIC and piping $100
Stock non-EPROM ECU $75
Stock exhaust $free
Stock gauges $free
Stock wheels $200
Stock suspension $free

Stock exhaust and suspension are listed as free because its common to see them given away and they carry no value other than their weight in scrap.

Things like a built trans, clutch, fuel pump stay in the car, these are selling points anyway because they can be a pain in the butt to do.

So you clear $1,960 selling the parts off. You can buy a clean modded DSM for $4k and sell a clean stock one for $3500. That nets you $1460 cash money.

Key to doing this is having a few parts cars and keeping in the brand, say 90-94 AWD DSMs only. The wrecks can donate parts to fix up the nice cars. If you are stuck buying all you stock parts from forums and boneyards, its tough to make real money. If you have a few parts cars at your disposal, are good at cleaning and detailing, and don't mind Ebay, you can make some good coin.