Easy cars to repair for $$$

[kimokalihi]

I've always wanted to buy really cheap cars that need mechanical repairs that people don't want to spend tons of money on to get fixed and fixing them and selling them for decent profits. I like working on cars and this always seemed like a good way to make some money in my spare time.

Recently my friend contacted me and told me he started doing this himself but with body work. We've been talking about it and we'd like to buy some cars together either at auction or private sales and he could fix any body work and paint the cars while I could fix the mechanical problems.

The question is, what cars would be the most ideal for cheap repairs/easy to find parts for cheap? I was thinking possibly Subarus with 2.5l headgasket problems would be a cheap and easy repair if they can be had for a low enough cost.

My friend just bought a 2002 Volvo in great condition except the front bumper and hood were smashed in. He got it at auction for $2,300 and he's replaced the hood and bumper and is ready to paint it and will sell it soon. The car is really nice so he should make some good profit I'd think on it.

[evolutionmovement]

Bodywork and mechanical is different, so from a mechanical point of view, I'd avoid European cars as parts are generally more, you'll need a wider range of tools, and everything is usually much more of a pain in the ass to replace. Time is money and gaining familiarity with them is time (and there's a reason besides selling on fashion that their values tend to plummet so greatly after a few years). OBD 1 and early OBD 2 Japanese cars are usually real straight forward, cheap, and easy. With gas prices they'll probably in demand enough for the used value to go up as well. Older American cars and some of the newer ones can be decent, but I think the gas prices and reputations will hurt what you could get resale and the ones that people would buy anyway (rwd V8s) are more likely to be bought by owners who will do their own wrenching (maybe buying at a discount just for that purpose). The Koreans have made strides, but the ones you're likely to find would be the older crappy ones and wouldn't probably be worth the bother as the resale is so poor. From the few I've done some minor work on, they're don't seem too bad, so there might be cases where you could get one for next to nothing (literally) just because it needs a clutch or something, and you could make a few hundred off of it by just doing that. You've worked on cars enough now to get an idea for what's a pain in the ass or takes a long time to do, so take a look under a lot of hoods and you can get an idea what the job will entail and the general condition of possible hidden problems.

Also, for electrical work, I highly recommend the Power Probe. They have a PP3 now which even displays voltage like a multimeter, but even the PP2 that I used when I worked on boats was still an awesome tool. HUGE time saver. You can detect if there's power or ground, but best of all, you can apply power or ground with a simple thumb switch on the probe. Probably more useful for boats when you're trying to figure out if that bilge pump or whatever is dead or there's a bad wire somewhere, but even just as a multimeter, it's got a much better reach and I found it easier to reach into places with it. Also has a nice, easily resettable circuit breaker for those d'oh moments.

They also make a tool that's supposed to be able to pinpoint the locations of shorts and opens along a wire, but I've never used one and am doubtful on its usefulness. I think what it does is put power into the wire in question and the sensor picks up where the EMF drops off, locating your problem, but it's not like coaxial cable or something where you can measure reflections back to the source, you have to physically move the receiver pretty close alongside the wire, which if you could do, you could probably see the fault. Most wires are well and truly buried and in large harnesses, which is the problem. The great majority of cases of bad wiring happens at a connector anyway.

[kimokalihi]

Good info Steve, thanks. I've been working on cars since I got my first vehicle, an 89 Toyota 4x4. That was 7 years ago. So I've got some experience under my belt and I'm learning more all the time. I'd really like to learn how to tune engines and that sort of thing.

I'll check out this PP3 you speak of. Sounds cool.

I definitely prefer Japanese cars and preferably ones from the late 80s to late 90s. They're easy to work on, easy to find cheap parts for and the resale value holds well on them. I'm actually pretty excited to start this with my friend. I don't expect huge profits just a little extra cash in my spare time doing something I enjoy with a good friend of mine.

Do you guys think the 2.5 headgasket failure subarus are a good target? If possible I'd like to work on subarus since I've gained considerable knowledge and familiarity of them. That and they're quite easy to work on. I certainly do not look forward to and will avoid any work on a European cars after my experience with replacing my friend's clutch on his 2002 Audi A4. 20hour job in 15-30 degree temps with the two of us working on it. Had to go to the store twice to buy new tools I've never used and in one case didn't know existed. The worst design I've ever seen as far as being able to work on the car. Why use 3 different types of sockets? Just so more people go to the dealership and pay $3,500 to replace a clutch? That's what they quoted him at the Audi dealership. Luckily he has me because I saved him a lot of money he did not have.

[Florin1]

Japanese cars that blue book for under $5000. Maybe even less, like $3000. People dont care as much about if a car has a rebuilt tile, if its a cheap car. Higher dollar cars aren't so easy to sell with a bad title.

[evolutionmovement]

You're preaching to the choir about VWAG products (though I did see a turbo Hayabusa engined RWD MK1 Golf that I wouldn't mind).

I think you could definitely buy blown head gasket Subarus for cheap, maybe under a grand, and turn them around. Late 90's with those issues in otherwise decent shape wouldn't be worth much to its exacerbated non-mechanical owner, but could be fixed and resold "with new head gaskets, timing belt, water pump with receipts" for a few thousand dollars (NE prices).

[kimokalihi]

Sweet I will look into that and see what they sell for both with bad head gaskets and without. Then determine how much the parts will cost and see what kind of profit I can expect to turn.

[Apex3]

I don't agree with evolution on European cars, it's mainly just VWs and Italian cars that are a pain. But there's a problem with buying them to resell, since for the most part the ones that you could make money off of are gonna sell real quick, because so many people know what they are. 80s to early 90s BMWs are real easy to work on.

I would say first and foremost look for cars you're familiar with, headgaskets is a good direction since it's an expensive fix at a shop, and you can get them dirt cheap. Also you'll probably find the best deals with boring cars, because you'll get more people that are clueless as to what's really wrong.

[evolutionmovement]

I agree that you'll probably be best off focusing on boring and ordinary cars that you can get cheap and that will move. Something that won't appeal to as many people (like European cars in the price bracket you'll be in) will sit longer. Also try to get a feel for markets. Some rarities will move fast. There are some cars that are in demand because they're stick shifts and not many were sold, like Maxima SEs (though those V6s can really suck—avoid exhaust manifold leaks even though they sound like an easy fix, the bolts very often snap and need to be drilled and tapped out and that back one is a real bitch). Then there're ones to avoid, like a Miata with the less common auto transmission, which nobody wants and so sell for a grand or so less. Other somewhat rare versions of common cars that are in demand, at least around here, are the Camry and Accord wagons. Basically, you also want to become an automobile surveyor and the better you are the better you'll do since missing something on your part can be expensive.

Another thing to think about is how many of these you plan on doing. In MA, if you sell a certain number of cars a year, you have to register as a used car dealer (but I think it's cheap and it gets you into the dealer auctions). A lot of mechanics are also technically used car salesmen because they do what you are looking into.

[kimokalihi]

I've heard it's 6 or 7 cars a year here before you have to get a dealer license. We've discussed this and it's not a problem for now. Between the two of us that's 12-14 cars. Quite a bit but if we really get crackin on it, I've got my gf for another 6-7 cars or we could suck it up and pay the fee. Is it an annual fee? Going to dealer auctions would be really nice though. Really good prices there. Not only that but if dealerships are going there to buy cars I don't think they buy too many cars needing repairs because they can't sell them like that very easily. Better for us.

[MikeyMeyagi]

subarus with headgasket issues. i make a killing buying and selling those cars.

[kimokalihi]

Nice. Which years had the head gasket problems again?

[Falken-18c]

i think its most 2.5 but my friend has a 99 legacy gt with over 400000km and dont recal him saying that he had to put one in but not to say he didnt

[PhyrraM]

The most notrious are the '96-'99 EJ25 DOHC. '96-'99 Legacy/Outbacks, '97-'99 Forester and the '98 Impreza 2.5RS. Virtually all of those will need a headgasket around 100K.

The SOHC EJ25 in the later years can also need headgaskets, but not as common.

[kimokalihi]

Sweet, sounds good. My friend has been researching this a lot and turns out you can only sell 4 cars per 12 month period which is way lame. Then you have to get a dealership license and have to have a business established and have to have posted hours of operation and signage. Stupid government getting their hands into everything.

[Dominator]

4 cars a year could be a good start. Especially if you use the idea of 4 for you , 4 for your buddy and 4 more in your girlfriends name. I'd say, try that for a year and see how it goes. If you sell the 9 cars, you're doing good.

I've thought of doing this too. I just don't have the work space to start something. I did pick up a 93 Legacy for $60 this winter. I drove it home too (20 miles). I'm gonna clean it up and put it up for sale.

Are you planning on doing this as your full time job, or as a hobby on the side?

[kimokalihi]

I'm doing it for profit so I don't know if I would call it a hobby. On my days off or before work. My friend has 4 days on 4 days off so he's got more time to do it but I might be getting a job with him next year hopefully and then I'll have plenty of time to do this as well. Also I may be moving into his house so that would make things much easier.

$60 is a damn good deal on any subaru.