This post isn’t epic. It’s just my thoughts as I look for a way to get our $5k Money Game fund to earn 5%. I wish I could say I woke with the answer. I don’t have it yet.
I talked to George last night about the possibility of flipping a car. He shared we need a solid list of what it costs to buy and sell a vehicle and the list needs to include the fee to have our mechanic check out any vehicle we are considering.
We estimated that tax, title, insurance, registeration and a mechanical check would be around $1,000.
I did a search for 1998 4Runners in our area and the Facebook asking price was within a few hundred of the 2 others I found for sale. Another quick estimate showed we’d have to offer about $3,500 to cover costs and be able to price the vehicle to sell quickly. I’d also need to set aside money to pay tax on the gain.
These quick and dirty estimates show me the money will be made when we buy something to flip – not when we sell it.
The vehicle I found was super clean with an interior in great condition. 8 hours later, there wasn’t a single nibble in the comments though I realize the seller may have received private messages. Often when something is in high demand, I see questions and comments expressing interest.
I threw out the idea of getting the 4Runner for me and letting me sell my Lexus. George pointed out that I’ll have to spend more for fuel and that the vehicle probably needs a timing belt and a major inspection. He felt the net gain could quickly be eaten up by expensive maintenance a vehicle of that age will need. (We keep our cars well maintained and everything is up to date on mine.)
We’re doing a lot of looking and thinking with our goals in mind. This is a good problem and it’s fun to try to solve it.