The Electric Slide: Florida Has a New Breed of ‘Car Flippers’
September 8, 2022
Car Flipping 101: You’ve probably heard of house flipping – a type of real estate in which an investor purchases a property with the sole intention of reselling it for a profit. Now, picture the same concept but instead of houses, cars are being flipped like hot pancakes and bringing in big bucks for investors! Now, according to a survey by www.GuntherKia.com a whole new breed of ‘flipper’ has emerged recently, with people buying cars – and specifically, electric vehicles – with the purpose of selling them on to make a profit.
Typically, cars lose over one-fifth of their value during their first year of road use alone, however, since the beginning of the pandemic, used car prices have actually increased by more than half (53%, to be exact). Some electric vehicle flippers are finding that buyers are willing to pay thousands of dollars more than the retail price to acquire these cars. One car flipper had a practically brand new 2022 Hummer EV1 for sale for $220,000 on Facebook, when it had been retailing for less than half ($105,000). And assisting this market is an unusual combination of issues affecting both electric vehicle manufacturers, as well as potential vehicle buyers, including a shortage of lithium batteries and supply chain problems, among production goals not being met and an overall shortage of new cars being produced. For car shoppers, these issues include sky-high fuel prices, as well as long waiting lists for electric vehicles, leaving a niche market open to those interested in investing in the business of car flipping.
www.GuntherKia.com conducted a survey of 3,012 would-be investors to find out how many have either engaged in, or plan on, investing in the car flipping business. This found that 2,074,924 Floridans said car flipping is something they plan on getting into – that is, if they haven’t already. Moreover, the average person said they’d be happy with flipping a car and expect a profit of 41% of its original value.
Broken down across states, this figure was highest in Wyoming and Vermont, where it seems people are automotive enthusiasts – a third (33%) said they have either dabbled in or would be interested in getting into the car flipping business. Comparatively, this figure was only 3% in Massachusetts.
In a sign of how desperate buyers are to land their perfect vehicle, the survey also asked people which model they would be most likely to purchase at a value above the recommended retail price if they were looking to buy a car and there was limited stock. Overall, 21% said they would most likely purchase an SUV at a higher value than the recommended retail price if they were looking to buy. Eighteen percent said they’d buy a sedan; 16% would purchase a sports car; another 16% would buy a pickup truck at this elevated value; 11% said a station wagon; 7% said they’d buy a hatchback; 6% said coupe and 5% said minivan.
When it comes to the values involved in the car flipping business, it can be a contentious topic. Although it appears many would be in support of joining the car flipping business, nearly half (44%) think car manufacturers should ban this market. However, 68% of people said personally, they wouldn’t have any moral hang-ups about buying a car with the sole purpose of reselling it at a higher cost.
‘The car flipping business is definitely a contentious topic – especially with used car prices having begun to soar during the pandemic due to a lack of brand-new vehicles available on the market,’ says says Joseph Gunther IV of www.GuntherKia.com ‘There are plenty risks involved in purchasing a car that has been ‘flipped’. These kinds of deals are usually done privately and without the authoritative qualities of a dealership, therefore, it’s important to do extensive research prior to investing in any kind of used car – especially one that is being sold for a significantly higher cost than retail value.’