The newest money maker?Buying and flipping a low-mileage electric car

A few years ago a friend turned me into a book titled, rich dad, poor dad. It explains the steps to increase your salary by finding opportunities for passive income streams beyond your 40+ hours per week work. In 2009, my husband and I ended up buying, repairing, renting and selling several foreclosed homes after the market recovered.Recently, an idea popped up on my desk and I bet rich dad Author Kiyosaki didn’t think of it in the original 25 years ago – passive income seekers can buy and flip electric cars!

But it has become a thing, and, as someone who is very interested in all things electric, I find it a very appealing idea. How about you?

With delivery times of up to nine months for new EV models, buyers are starting to look elsewhere for an all-electric drive. They pay dearly for skipping the new car queue, even if it means buying an electric car that’s already owned by someone else — albeit for a short time.

A number of factors are affecting the ability of global automakers to deliver new vehicles in a timely manner. The industry lost 2.5 million sales in 2020 and another 2 million in 2021, so there’s a lot of people waiting. Auto inventories remain low despite a recovery in production following the Covid shutdown. Shortages and other supply chain disruptions are expected to continue into 2023, but to a lesser extent.

Manufacturers’ discounts continue to decrease due to ongoing inventory constraints.

U.S. new vehicle sales fell more than 21% in the second quarter of 2022 compared to a year ago. Edmunds.com The automaker is expected to sell 3.49 million vehicles in the quarter, nearly 933,000 fewer than a year earlier.

JD Power estimates that the average sales price for a new car in the first six months of the year was nearly $45,000, a record 17.5% higher than a year ago. Thomas King, president of JD Power’s data and analytics division, said it was the worst first six-month sales performance since 2011, barring a pandemic-hit 2020. “However, from a profitability standpoint,” King added, “the first half of 2022 was a record-setting year for retailers and manufacturers, with retailer profit margins shrinking as vehicle prices continue to rise, manufacturer discounts narrower hit a new high.”

In other words, the average transaction price of new cars maintained an upward trend.

Meanwhile, inconsistent and still high gasoline prices sparked by Russia’s invasion of Ukraine have changed the minds of many consumers—suddenly, electric vehicles sounded pretty good. Edmonds Analysts are advising car buyers to lower their expectations for new car shopping deals for the rest of the year.

Reportedly, a used car shortage has quickly pushed up the market value of used cars as new car production has been delayed. car networkBy the beginning of the year, the shortage effect was so dramatic that some used cars were priced close to their new counterparts. The trend has been rising, but with an unusual twist: Some used EVs are fetching more than the new-car list price if it means a quick delivery turnaround.

The idea of ​​flipping electric cars makes more sense.

Aussies decide to flip electric cars in search of unlikely fine investment

It turns out that one of Australia’s unlikely best investments this year is a new/pre-owned Tesla.

Demand for used electric vehicles in Australia is so high that Lloyds Auctions is having trouble keeping its stockpiles high enough to meet demand from consumers with an appetite for electric vehicles. But what about the slightly used Tesla model version? They are reportedly available for $130,000 to $138,000 from multiple sellers across Australia. carsales.com.au.

“We’re telling anyone who might be thinking about selling an electric or hybrid car, now is the time, we need your car,” said Kirstie Minifie, Lloyd’s local head of marketing and design, according to the report. Teslarati. “We’ve seen used EVs for sale above their original retail prices.”

While the value of used Teslas has also climbed in key markets such as the US, price distortions are particularly acute in Australia, which has long been anti-electric.

The top-of-the-line Model 3 Performance ordered in Sydney today for AU$91,600 ($64,200) will be delivered between February and May 2023, according to Tesla’s website. That’s longer than expected in the U.S., Japan and Germany timelines. But a one-month-old Tesla Model 3 with less than a hundred miles on the odometer can sell for around A$130,000 ($91,000) or more in Australia.

That’s about a third more than the price of the new Tesla Model 3.

Tesla chairman Robyn Denholm said Tesla’s electric vehicle sales were recovering quickly from a low base in Australia and would catch up with sales of its Powerwall home batteries in the country. “We now have more than 26,500 Teslas on Australian roads and the momentum is strong,” Denholm told the Australia Clean Energy Summit in Sydney in July. “I personally wouldn’t be surprised if we doubled that number by the end of the year.”

Australia accounts for about 1% of Tesla’s electric vehicles on the road, with a global total of 2.5 million by the end of the first quarter of 2022. Electric vehicles make up just 2 per cent of new car sales in Australia. These low percentages may not change much as governments across Australia are considering plans to introduce an electric vehicle tax. Critics say it’s a tax on clean air that stifles economic opportunity.

Figures recorded by the Australian Electric Vehicle Council estimate the total number of Tesla vehicles sold locally over the past decade at 22,743. They point out that the price of fuel for a petrol car (11L/100km) is $14 per 100km, while in Australia the average cost of an electric car is $4 per 100km.

According to reports, Denholm said that the biggest obstacle to accelerating the adoption of electric vehicles is the lack of fast charging stations. ReutersTo speed up the rollout of fast charging stations, transformers need to be added to the grid, which she said was a very slow process in Australia compared to the rest of the region.

“These chargers need to be rolled out immediately. This is the missing piece of mass EV adoption,” insists Denholm.

Meanwhile, if you want to flip an electric car in Australia, carsales.com.au Says there are 1010 electric cars on sale in Australia as of this writing.

Final thoughts on the idea of ​​flipping electric cars

It is well documented that there are significant problems with the dealership sales model in the US and elsewhere. The demand for new electric vehicles is so high that few dealers keep vehicles for test drives. Salespeople often scoff at used EVs, especially given the limited inventory available today.

Flipping a car involves paying attention to the market and exploiting the profit potential. Research the used electric car market to make your purchase as affordable as possible – you may also find yourself waiting for the right used electric car. Once you receive a used electric vehicle, pay attention to the resale price and fair market value for the best point of sale.

Good luck and have fun! Not all flips work, but the ones that do infuse a sense of accomplishment and increase financial security.

 

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