Buy a house, fix it up and sell it for a profit.

Flipping houses is a real estate investment strategy where an investor purchases a property, typically one needing repair or renovation, and sells it for a profit within a short period, often a few months to a year. The obvious core objective is to buy low and sell high, with the profit derived from the difference between the purchase price and the resale price after renovations.

This process involves significant upfront costs for the property purchase, carrying costs (like mortgage, taxes, and insurance), and renovation expenses.

Easier with cars: Hello curbstoners.

In the US, the same principle is being applied to cars. In comparison to houses, it needs much less money up front and the resale value is much more flexible. You buy at an auction, make some repair, perhaps do some cosmetic upgrades and voilà: A used car for sale.

You then pretend to be a private party seller, while reducing costs through evading regulations, taxes, and registration fees. This practice, associated with unlicensed dealers, is apparently known as curbstoning.

You can observe folks selling vehicles from locations like the street or vacant lots rather than from licensed dealerships.

In some states, individuals can sell a limited number of vehicles per year without needing a dealer’s license, such as three cars in Florida or four in New Mexico, but exceeding these limits typically requires licensing.

The official view of curbstoners is dim, and it is illegal in most states. “Curbstoners do not comply with state or federal laws, and you have no protection in your dealings with them. Buying from a curbstoner increases your risk of not being able to get the vehicle title transferred, or of getting a car that has been previously wrecked or that has a rolled back odometer.” is the official word.

Making a living

When I ask a person loitering around two cars, all marked for sale by owner, including the classic Beetle, if the titles of the cars are all registered with the same name, the answer is vague. There are however several assurances that these cars are in good shape, recently serviced and found in proper order.

We talk a bit more, and it sounds like this kind of trade has been going on for a while.

I recall the parting words:

“You got to make a living somehow, don’t you?”

P.S. Officially known as the Volkswagen Type 1, the Beetle was produced by the German automaker Volkswagen from 1938 to 2003, making it the longest-produced single-generation automobile with over 21.5 million units built. Its design originated from a 1934 directive by Adolf Hitler, who sought an affordable “people’s car”. (Volkswagen in German, translates to ‘car for the people’)