Wednesday, May 4, 2011

Car #1 2000 Range rover, Whats that I smell?

Hello Folks, and welcome to my blog. I plan to make this into a daily piece where I update the blog and any of my followers on my progress in flipping cars I purchase through various resources. I've flipped cars before, but always part time and never for an extended period of time like I plan to do now.
With this renewed car flipping venture I am about to embark on, I've come up with a more precise and cost effective approach in picking the cars I plan to buy. Also with me documenting my progress in this blog, it will help me look back and see the things I could have done differently and help me tweak my approach the further I get in this car flipping business.

Anyways, lets just get right into this.

Car# 1. I've just bought at a public auction. Went into this auction with a list of 22 vehicles to inspect and possibly bid on, and came out with this gem although with not so great discipline. You see I had some rules for myself before I went into this auction:

- Only bid on the vehicles I had previously researched on my list. [CHECK]

- Also inspect all the vehicles that were on my list before the auction was scheduled to start. [FAIL]

- Do not bid on vehicles in the lane that were not inspected by me prior to auction. [FAIL]

This 2000 range rover was on my list of vehicles to bid on. I did get to inspect 16 of the 22 vehicles that were on my list, unfortunately the range rover was one of those vehicles I missed making it a clear do not bid item. So I broke my rule and hopefully I will not pay for it in the end. The bidding on this item started at $2400 and quickly made its way down to $1800 before I placed my bid. When I look back at it, I probably should have waited for it to drop lower before placing my first bid. I will need to keep that in mind for next time. When the price reached $1800, my max bid was $1900 as recorded on my sheet, and I got a little to trigger happy and went in for my bid. I was the sole bidder and ended up taking her home. The rover looks great cosmetically and I was excited about this purchase. However I started to second guess myself when I first entered the vehicle. First thing I notice as I turn on the vehicle is a check engine light along with an error message on the dash that read traction fault. I then had to move the vehicle to guest parking, so as I go into reverse and give it gas..I notice no power. Its moving like a turtle in reverse!! Samething as I go forward!! Too make a long story short, I don't get more than 5 miles before I pullover due to overheating and the smell of burnt oil. I suspect a blown head gasket and have it towed the rest of the way home. Here is a break down of what I have invested in the vehicle, as well as the repairs that will be done before its put back on the market for sale.

2000 Land Rover Range Rover 4.0 SE
Purchased at: Auction
Cost after winning Bid + Fees: $2190
Towing cost: $100
Head Gasket Job(Head Gasket set, Head Bolt set, Heads valve test, cleaned and resurfaced, and Labor): $738

The head gasket job is currently being done. Once that is done, I plan on replacing the windshield then listing her for sale. Will update that process later on.

Total invested so far: $3028

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