Wheel Scout
How car flipping works
Count every cost
The spread between what you pay and what you sell for isn't your profit. Before you buy, add up:
- Title, tax and registration to put the car in your name. In most states the sales tax is charged on the price you paid.
- Repairs and parts, plus a cushion for the problem you find after you buy.
- Detailing and photos. The cheapest way to add value.
- Inspection or emissions test where your state requires one to register.
- Your time and the days the money is tied up while the car sits.
Profit from flipping is taxable income. Keep every receipt.
Finding cars to flip
What makes a car easy to flip
The best cars to flip are the ones lots of buyers in your area want: common commuter cars, small SUVs and pickups with plentiful, inexpensive parts. Watch how fast similar listings disappear near you; the models that sell in days are the ones to buy. Check every car before you buy it, because a brand or a rollback you miss becomes the next buyer's question. VIN check.
Stay legal: title it, and know your state's limit
Put every car in your name. Reselling a car on the seller's signed title without titling it yourself (an "open title," or title jumping) is illegal in most states, and it's a hallmark of curbstoning, the unlicensed dealing state agencies warn buyers about.
Know when you become a dealer. Every state sets a point where selling cars makes you a dealer who needs a license. Two examples:
| Texas | You don't need a dealer license (a general distinguishing number) if you sell fewer than five vehicles of the same type in a calendar year, owned and registered in your name (Texas Transportation Code 503.024). |
|---|---|
| Florida | Buying, selling or offering three or more cars in any 12-month period is presumed to be dealing (Florida Statutes 320.27). |
Other states use different numbers, so check with your state's dealer licensing office before your third or fourth flip of the year.
Car flipping questions
Is flipping cars profitable?
It can be when you buy well under market and keep repairs small. Count title, tax, registration, repairs, detailing and your time before you call it profit, and remember the profit is taxable income.
Can you flip cars without a dealer license?
Up to your state's limit. Texas, for example, doesn't require a dealer license for fewer than five vehicles of the same type a year titled in your name; Florida presumes you're a dealer at three in 12 months.
Where do you find cars to flip?
Mostly from owners on Facebook Marketplace, Craigslist and OfferUp. Underpriced cars sell in hours, so getting an alert the moment one posts is the edge.
What are the best cars to flip?
Common models with lots of local buyers and inexpensive parts: commuter cars, small SUVs and pickups. Watch which ones sell fastest in your area.
Do I have to title a car before I resell it?
Yes. Reselling on the previous owner's signed title, called title jumping or an open title, is illegal in most states.
Is there an app for flipping cars?
Wheel Scout watches Marketplace, OfferUp and Craigslist near you and alerts you when an underpriced car posts, with a history check on every car.
More ways to check a car
Buying guides
Find the deal, then check it.
Wheel Scout alerts you the moment an underpriced car posts on Marketplace, OfferUp or Craigslist near you, and runs the history right in the app.
The basic history report uses NMVTIS data from an approved NMVTIS data provider. NMVTIS records come from states, insurers and salvage yards; not every event is reported to it. Vehicle specs and recalls come from the National Highway Traffic Safety Administration (NHTSA). Wheel Scout is not affiliated with any marketplace or government agency.