Flipping (Classic) Cars for Profit (Treasure Hunt Series, Part 3)

This week we look at the best ways to make money in the second-hand car market, but not only that, we’re also looking at the used car sector in general. So, it doesn’t matter if you’re after something to flip or something to pick up the shopping, we hope there’s something in this article for everyone. Let’s start with an easy question.

Why buy a second-hand car in 2025?

Over the last couple of years, conventional wisdom suggests the smart money opted for new cars. However, we’re here to tell you that in 2025, new cars are so last year. So, why the big shift? Well, it’s all about the numbers. When Covid struck a few years ago, it dealt a heavy blow to the automotive industry. In fact, the virus’ impact was so profound that experts claim the car sector has taken until this year to recover. The upshot of that means that thanks to a lower number of cars produced, fewer cars were sold as trade-ins, etc. The end result of which meant that second-hand cars held their value better than they had in previous years. This of course made used cars less attractive to people looking to buy cars. So, with the price gap between old and new at historical lows, more people chose to dig a little deeper and shell out for a shiny new car. This year though, production has returned to pre-pandemic levels, which means soon there’ll be lots of cheaper cars filling up the trade-in lots.

Hot hatches and saloons and estates… oh my!

This next section is geared more towards budding used car traders, but the advice is solid and you don’t need to be a dealer to recognise a good deal. Now, some disclaimers, we’re neither financial advisors nor mechanics, so please do your own due diligence before parting with any cash. The key to getting the most from your money is knowing what to look for, and where to find it. Let’s answer the first question first.

What to look for when buying used cars?

Traditionally, there are three simple methods for making a few quid on a used motor. You can either grab a bargain, do up a banger, or invest in a future classic. Let’s look at them one at a time.

• Deals on wheels

Bargains exist in the motoring world, especially on online marketplaces. There are plenty of people who either don’t know the vehicle they are selling is worth more than they are asking, or as commonly simply don’t care. The key to finding and securing one of these dream-come-true deals is speed. Cheap bargains won’t hang around long, smart investors will already have search alerts set up on Riloop with their own curated keywords. Choosing the right search terms is the secret sauce and you need to get creative. Try to put yourself in the mind of someone selling their car. What would someone who doesn’t want a lot of hassle write on their ads? We’d suggest starting with obvious phrases first. Set up alerts that capture phrases like “quick sale”, “must go“, or anything that gives the impression the seller doesn’t want the car. These sellers are most likely to sell their vehicles cheap. Now, sneaky sales folk also know these tactics, so, if you do decide to go see such a vehicle make sure the story matches the drapes, or so to speak. Put another way, if you rock up to see a car someone claims they are selling because they’re going backpacking, but they appear to have another five cars in the driveway, best make a swift exit.

• Bangers and crash

If you have the time and skills, another easy way to make a few Euros, or just get yourself a bargain is the doer-upper approach. The key to success in this scenario is knowing your limits. Some cars are easier to fix than others and be very wary of any offer that seems too good to be true. If you do decide to look for something to repair, then there are a few red flags you need to avoid. Remember, people will tell you all sorts of stories, and not all of them will be true. If you get a chance, make sure you pull both safety belts out as far as you can. If you find mould or dampness at the end, there’s a good chance the car has suffered flood damage and with the weather we’ve seen this year, that scenario isn’t as unlikely as you’d expect. Look out for other causes for concern by running an exterior check. Make sure all the paintwork matches and look for gaps and anomalies in the panels. Uneven or wider gaps might suggest extensive bodywork repair and should set off alarm bells. If you have time and access to the logbook and manual, it’s a good idea to make sure part numbers match. Finally, study the airbag seals closely and look for any indications they might have been deployed. There are lots of online checklists you can study, like this one from Autotrader. If you’re not an expert you can always use your Riloop account to save a custom list of cars you like and forward it to any mechanically-minded friends.

• Grand designs

At some point, no matter how ugly they were as ducklings, all good cars become swans. The exact time varies depending on the make and model, but typically this transformation occurs around the ripe old age of 25. Of course, not all cars make it to the quarter century, and not all make it there in the best condition. To get the most banger for your bucks, you need to think carefully about which cars have grown old the most gracefully. Obviously, iconic designs and innovations from any given period will command the highest prices. Think Mark One Audi TT, or maybe something quirky like the first hybrid, the 1999 Honda Insight. Anything that stood out, for good reason, could be a contender for the legend ‘future classic’. Condition and edition are also important. No one is going to want something that looks like the years have been too hard on, and if you’re lucky you might find one that was part of a limited run or an exclusive range. The best guide to what might become a future classic is probably common sense, but you can also just check out the various lists online like this one from Car Gurus. That said, as we mentioned at the start of the section, all cars that live long enough become classics in their own right. Don’t believe us? Well, imagine trying to explain to Marie, a single mum from Calais, that the 1988 Renault 5 she used to drop the kids off at school, is now worth over £10 grand.

Universal truths

Regardless of your motive or method, there are some infallible facts you can take to the bank whatever car you end up with. There are loads of them so here are the bullets.

• Colour

Believe it or not, your car’s paintwork can add or subtract from its value. Preferences vary, but the safest colours are: white - particularly, in hot climates black - seen as classy Silver - a safe middle ground Red - extra points for metallic sheens Blue - who doesn't love blue?

• Fuel Type

We’re in the middle of a climate emergency and the type of engine your car has may have immediate and future ramifications. EVs and hybrids are considered the best option by most authorities and if anything are likely to save you money. Whereas, fuel-heavy and diesel vehicles can fall foul of additional levies, tolls, and taxes and you might even find your new vehicle is banned from parts of some big cities and towns.

• Reliability matters

Don’t just choose your new vehicle based on the price and the colour, the make and model can also tell you a lot about reliability. Take the time to look up how easy any potential vehicle is to repair. That silver Porsche may look like a steal, but not if you need to replace the clutch.

In conclusion

Whether you want a cheap reliable car or want to make a few quid finding and selling a cheap reliable car, 2025 is looking like a buyer’s market. Remember, you can maximise your chances of getting the best deal by using the same tools as the pros, so sign up for your free Riloop account today and start finding your own hidden gems.