Niche and Be Rich! Tips for semi-exotic car-flips. Part I

 

flipping semi-exotic cars

flipping semi-exotic cars

Let’s be clear, by exotics I don’t imagine that you will be selling Ferraris and
Lamborghinis.

You’d need some seriously deep pockets for that! What I am
talking about, however, is this: you might decide to specialize in Jaguars.
Jaguars have terrible resale value. So much so that you might buy them at
auctions for nearly nothing. About seven years ago I bought a six year old
Jaguar with 40K original miles on it for $4K. It’s new sticker price was like
$65K. I drove it a few years and sold it for $6K. My main point of this story
is less about profit than how much depreciation this car suffers. Still, there
is a real audience among Jaguar enthusiasts and those who aspire for a
fancy car on a very limited budget – like me! The real secret is to become a
specialist, an expert. For instance do you know that Ford bought Jaguar
around 1994 and vastly improved reliability. Thus despite Jaguar’s
reputation for unreliability, it went from near last place in reliability and
quality according to J.D. Powers to nearly #1! Or do you know that in the
late 1990’s Mercedes-Benz had the reverse happen. That despite their
reputation for quality, MB went from near top rankings to dead last? By
becoming an expert you have the inside track, the knowledge that makes
opportunity and luck happen. After all, knowing the best years for a certain
car and the strengths and weaknesses of certain models can be a real
advantage.
Unlike ordinary car buyers, people who buy the kind of imports we are
calling semi-exotics (BMW, Mercedes, Jaguar, etc.), these buyers tend to
be far pickier about the cosmetic condition. No scratches, no rust, no dents.
They also tend to like these cars totally stock. No fancy stereos or flashy
low-profile rims. Again, there are exceptions, but the vast majority of these
buyers want the car exactly as it came from the factory. No after-market
junk.
Of course, what some people might mean by semi-exotic is just a real
specialization or niche – like Ford Mustangs or Chevy Corvettes. But yes.
The same principle of a niche knowledge base applies. By becoming a
specialist, you have the ability to make money. More knowledge can equal
more money if applied properly. But remember you’ve got to know your
stuff, because the “enthusiast” customer also likely knows their fair share
too. Never stop learning

http://www.FlipCars.org

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