The Car Flip Profit Formula
Profit = Sale Price - (Purchase Price + Repairs + Fees + Taxes)
Step 1: Know Your Sale Price
Research comps on CarGurus, AutoTrader, and Facebook Marketplace. Use the average of 5 similar listings as your target sale price.
Step 2: Estimate Repairs
Get a pre-purchase inspection ($100–$150) for any car over $3,000. Always add 20% buffer to your repair estimate for surprises.
Step 3: Account for All Fees
- Title transfer: $50–$200 depending on state
- Tags/registration: $100–$400
- Detailing: $100–$300
- Photos, listing time: $0–$50
Step 4: Calculate Your Minimum Profit
Never flip for less than $500 net profit. Ideally target $1,000+ to make the time and risk worthwhile.
Example Calculation
- Buy price: $4,500
- Repairs: $800
- Fees: $300
- Sale price: $7,200
- Net profit: $1,600
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