Cars - Customize - Invest, Do people do this?

[Crapozo]

Hello,

I have been wondering...
I know that alot of people invest properties by buying a house, fixing/changing it and rent it out but can the same thing be done with cars?

I mean would it be possible for me to make a profit if,
I buy a car, i customize it (e.g tune the engine, paintjob/graphics, change exhaust, interior, other fancy stuff) and after a few years, sell it.

So do some people actually do this?


(I no nothing about cars so yeah its a stupid question :nutsycuck )

[The Monty]

I think most people dont do this because it just is not feasable. I think it is practically impossible to make money on a car, unless you snag one that someday becomes really sought after ie. the GTHO's and now the old Monaros and stuff.

[DOC]

Originally Posted by Crapozo

Hello,
I have been wondering...
I know that alot of people invest properties by buying a house, fixing/changing it and rent it out but can the same thing be done with cars?
I mean would it be possible for me to make a profit if,
I buy a car, i customize it (e.g tune the engine, paintjob/graphics, change exhaust, interior, other fancy stuff) and after a few years, sell it.
So do some people actually do this?
(I no nothing about cars so yeah its a stupid question :nutsycuck )

I would not rule it out but it would be something that you would have to way up very carefully.

You do not make money when you sell an item ( in general ) but instead money is made when you buy it. ( knowing what you can sell it for )

the better you buy your cars / parts etc will determin the end result. then you would need to consider the man hours and the value of your time

As you have said is it possible and is a question i have asked myself, but it would have to be one tough gig at the moment with second hand prices being at all time lows.

Pete

[Tote]

I used to have a couple of mates who made some cash on the side by doing up cars but they stuck to the first car market, they'd buy something like a 10 year old corolla reasonably cheaply, detail it, put new tyres etc on it and sell it to an L plater whos parents wanted them to have a "nice little car". A long way from buying an XY and putting a blown 5.6 litre windsor in it and expecting to make money though.....
Regards,
Tote

[EF, What else?]

Originally Posted by Crapozo

Hello,

I have been wondering...
I know that alot of people invest properties by buying a house, fixing/changing it and rent it out but can the same thing be done with cars?

I mean would it be possible for me to make a profit if,
I buy a car, i customize it (e.g tune the engine, paintjob/graphics, change exhaust, interior, other fancy stuff) and after a few years, sell it.

So do some people actually do this?


(I no nothing about cars so yeah its a stupid question :nutsycuck )

Houses dont rack up miles, cars do. And you can fix a house up all you want, but its the land it sits on which determines how much you will make.

Cant do the same with cars, otherwise Id have my car parked on a slab of gold, speaking of a slab of gold, I might go crack a few now : :

[bundy bruiser]

I have a couple of collectable cars that I will make money if and when I sell them.
You would be better looking for a collectable car, something rare and in good condition and correctly storing it for years. As soon as you customize and do things it costs money and sometimes losses value.

Take a look at some American muscle cars for instance,
a good example would be Chrysler cars fitted with the legendary 426 Hemi motor.
Seen a few going for over a million, one even went for 5 million US.
10-15 years ago these could be had for under $25000, a great return even if you spent $50 000 restoring it.
Gt Falcons are another example though a little less return on the Australian market.

[*rayman*]

Doc is spot on in this situation. The purchase price determines how much money is to be made on a sale. If you see a bargain, grab it asap. But be warned, you must know the market and the product well or you WILL lose money very quickly. I guess it's exactly like playing the stock market, there are risks involved and it's not always free money.

If you dont know enough about cars, and are not able to do the work on the cars yourself, forget it. Do something you know about in that case.

I have noticed plenty of guys buying cheap cars and wrecking them out for profit, usually with obvious signs of profit in their pocket. Then you see guys that cant move something even at rock bottom prices.

The trick is you have to be prepared to own something you buy indefinately if you are looking at making a quick buck on it, and you mustn't be desperate to get your money back from the purchase price. Think of it similiar to a term deposit.

Generally speaking there is not money to be made on cars, but if you buy smart, and sell smart, for a select few it's a different ball game.

The term the americans use for buying/selling cars for profit is to 'flip' it.

Good luck with it.... i've been doing it for years, with good results so far. touch wood. :nutsycuck

[The G6ET Spot]

A friend of mine does it and makes a very nice profit off the cars he buys and sells.You just have to get the right car at the right price, without needing too much work to resell.His last car was a 1966 Valiant Safari station wagon, reasonably rare car that he picked up for $2000.One owner car was unregistered and needed some work mechanicaly, but it was all things that he could do himself. After registering it the car owed him just on $4000,he sold it in the first week of advertising for $8250.Not a bad return for a 5 week turnaround.He's been doing this for about 8 years now and the money he makes on them pays for their overseas holidays.In 2004 they went on a round the world cruise for 4 months all payed for by buying and selling cars.Addmitedly he has lost money on a couple,but not enough to break the bank.So the answer to your question is YES you can make money on cars.As long as you do thhe right ones and dont pay too much for them to start with.

[Crapozo]

alright Thankyou for all your replies

I was actually thinking towards modern cars

Anyway, the reason i ask this question if you are curious is because i like customizing stuff to my liking and i am thinking that if i buy a car in the future i would try and customize it as much as i would like and then i thought, maybe i could make money from it too hehe

[coyote]

Originally Posted by Crapozo

alright Thankyou for all your replies

I was actually thinking towards modern cars

Anyway, the reason i ask this question if you are curious is because i like customizing stuff to my liking and i am thinking that if i buy a car in the future i would try and customize it as much as i would like and then i thought, maybe i could make money from it too hehe

Modern cars are a liability not an asset, even long term Motor dealers are doing it tough in the "just used segment" that said, a couple of my customers have added spoilers and wheels to some of their stock with some degree of success, then the next point is that if you buy it to sell there are regulations for the industry that you must abide by, not just RWC's but limitations on actually selling them.

[Ringo]

Hey Tote.....I did the same thing a few years back with a few old cars.

I went hunting for cars with no reg because no one wants them and any little 4 pot car with a roadworthy is worth about $2,500.

The hard part was finding a car that needed a minimum of work for the r/w. It took a lot of effort and time and petrol getting around.

A few thousand dollars profit split b/w 2 people but when I worked out how much time was put in it we really felt it wasn't worth it.

I see stuff on ebay that people want to off load which I wonder if I could trun around.

If only I had my own workshop that could whip out r/w's by the truck load.