This guide takes you from having no car to a booked inspection on an approved flip that meets our criteria and has no major issues.
The Process of Finding a Car:
Step 1Our Vehicle Search Criteria
Our recommended makes, models and criteria to use when looking for a car to flip.
Recommended Manufacturers to Buy
TToyotaJapan
MMazdaJapan
HHondaJapan
MMitsubishiJapan
NNissanJapan
SSubaruJapan
SSuzukiJapan
HHyundaiSouth Korea
KKiaSouth Korea
FFordAustralia
HHoldenAustralia
ReliabilityKnown for going the distance. Buyers trust them, and that trust makes them easier to sell.
Cheap to FixParts are widely available and affordable. Any mechanic can work on them without specialist knowledge.
Strong ResaleJapanese and Korean cars consistently move faster on Marketplace than the alternatives.
The Vehicle Search Criteria
Every car you consider should tick all seven before you go any further. These are the exact criteria we use on every flip.
ManufacturerRecommended Manufacturers
Price RangeUnder $3,500
KilometresUnder 210,000 km
TransmissionAutomatic
Fuel TypePetrol Only
Model Year1995 or Newer
ConditionNo Major IssuesMinor issues are okay
Approved Vehicle List
Beginner Recommended
The exact makes and models we recommend for your first flips.
PDF
Approved Vehicle ListOne page with our Vehicle Search Criteria, every recommended model brand by brand, and the cars to avoid. Save it to your phone and only search for these models.
Small leaks, worn parts and minor faults are expected, and they create your profit opportunity.
No Service History Is Normal
Cars in this price range rarely have it, and that's fine. Buyers trust our recommended makes and models because of their reputation.
Avoid Major Faults
Walk away from major engine or transmission faults. The repair bill can wipe out your profit.
Everyday Reliable A – B Vehicles
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Cars to Avoid
The goal is fast turnover, low risk and consistent profit, not the perfect deal.
Rare vehiclesHard to price, slow to sell, limited buyer pool
Highly modified vehiclesNarrows buyer pool, most buyers want original vehicles
Project carsTime and cost unpredictable, not a beginner vehicle
Luxury vehiclesExpensive to fix, smaller buyer pool, higher risk
Major engine or transmission faultsRepair costs will eat your profit or exceed it
Any diesel that isn't a ute or vanHigher repair costs, fewer buyers in the budget segment
European makes and modelsParts are expensive, mechanics charge more, resale is slower
High kilometre vehiclesSlow to sell with not much life remaining
Step 2Understanding Minor vs Major Issues
All cars have issues. Understand which ones are Minor vs Major.
Minor vs Major — The Rule
Minor IssuesMinor issues are affordable, low-risk issues we can factor into our budget and fix. They help us negotiate and make more money.
Major IssuesMajor issues are expensive, high-risk issues we can't budget for or easily fix. They eat into our profit and can lose us money.
PDF
Minor vs Major Mechanical IssuesThe full checklist of minor and major issues. Keep it on your phone for every listing you look at and every inspection.
Use Step 1 and Step 2 to filter every listing. There are two types of listings to look for.
Before you search: set your Marketplace filters to match the Vehicle Search Criteria. Under $3,500, under 210,000 km, automatic, petrol, 1995 or newer. Anything outside these, scroll past.
Listing Type 1 — Just Listed
Good cars at good prices sell fast. The first person to message usually gets the car. Let the listings come to you.
Save your searches on Facebook Marketplace
Save a search for each approved model you're targeting with your criteria filters applied, and turn notifications on so new listings reach your phone.
Set up a third-party listing alert app
Use our recommended alert app for faster notifications on new listings that match your filters. Add app name
Screen it in under a minute
Check the listing against Step 1 and Step 2. Make, model, km, price, and any issues mentioned. If it passes, move straight to Step 4.
Message the seller immediately
Follow Chart 1 (Just Listed, under 7 days old) in the Inspection Booking Guide.
"Hi there, I have cash ready. When can I come?"
Listing Type 2 — Older Listings & Price Drops
Cars that have sat for a week or more often have sellers who have dropped the price, are tired of time wasters, or are ready to negotiate. Less competition, more leverage.
Search each approved model manually
Run through the approved list with your filters on. Scroll past the newest listings to the ones that have been up 7 days or more.
Look for price drops
A reduced price shows the seller is motivated. A car that has dropped once will often drop again.
Look for clues the seller wants it gone
The price has been dropped, and the description might say something like "price drop" or "need gone".
Find out why it hasn't sold
Follow Chart 2 (7 days or older) in the Inspection Booking Guide. Book the time, then make the pre-qualification phone call before you drive there.
Good reason it hasn't soldPriced too high, the seller has been busy, or they've dealt with time wasters. More negotiation power for you.
Bad reason it hasn't soldSomething is wrong with the car that isn't in the ad. Check it against your Minor vs Major sheet.
Step 4Estimated Profit Calculator
Compare the car against 4 similar cars to see if it's undervalued.
How to Find Your 4 Comparison Vehicles
Same make and model
Within 3–4 years of your car's year
Within 50,000 km of your car
Same transmission and body shape
Listed in your state or neighbouring states
Check Marketplace, Carsales and Gumtree
The Car You Found
Quick FillPaste the ad to fill this in
Open the ad, press Ctrl+A (Cmd+A on a Mac), copy it, then paste it here.
4 Comparison Vehicles
Market Check
Quick FillPaste comparison ads (Marketplace, Carsales or Gumtree)
Same as above: Ctrl+A, copy, paste. Each ad you paste fills the next empty row.
#
Year
Kilometres
Asking Price ($)
Location
Match
Estimated Profit
The 80% Rule: a car is only a potential flip if your estimated purchase price (listing price less 10%) is 80% or less of the market average.
Showing example figures. Replace them with your own car.
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of comparison cars
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Listing price less 10%
Estimated Profit
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Enter your car and at least one comparisonThe verdict appears once there's a listing price and a market average.
Save or Start FreshYour entries save automatically on this device only. Download a PDF to keep a permanent copy, then clear the page for your next car.
Clear everything on this page?
This wipes your car, all 4 comparisons and the results on this device. It can’t be undone.
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