People that enjoy car flipping know that most buyers avoid cars with problems because they just don’t want to deal with the hassle of having repairs done. Lower demand usually equates to lower prices. As a result, great car flippers actively seek out cars with problems.
I’ve found that sellers of cars with problems price their cars well under what the car’s value actually is – even lower than what parts and repairs would be to fix the car. Unless the car needs major repairs, I usually find that buying a car with problems offers much more profit margin than one that has nothing wrong with it.
Here are the types of car problems I usually love to see in a car:
- Dead battery
- Missing dash knobs
- Check engine lights
- Minor engine repairs
If you find a car with a check engine light just make sure you get it checked out at your local parts store before buying the car (which is usually free). You may even want to invest in a code reader so you can check the codes yourself – something I recommend for car flippers.
There are some car problems that you should avoid like the plague because they have the potential to cost tons of money. Here are a few of those:
- Transmission slips
- Engine knock noises
- Body damage
- Title Problems
If you do buy a car with one of the issues listed above make sure you either really, really know what you’re doing or you buy the car at a really, really low price.