I’m trying to buy a reliable used car in the 5-10k range and keep running into the same problem. Every time I see a good looking vehicle on Facebook Marketplace that seems well maintained with supposedly one previous owner, it turns out to be some car flipper selling it.
These people seem to have access to tons of clean cars that look pretty good for their age. Back in the day you’d find these kinds of vehicles at buy here pay here dealerships or being sold directly by the original owners on Craigslist.
I’m curious how these flippers manage to get their hands on so many vehicles that are in decent shape. Are they using some kind of auction site that regular people don’t know about? Or are they just really good at finding private sellers before anyone else does?
Most flippers are working multiple sources that regular buyers don’t tap into effectively. Estate sales are huge - when someone passes away, families often want to liquidate vehicles quickly and don’t have time to maximize value. Flippers monitor obituaries and estate sale listings religiously. They also cultivate relationships with mechanics and body shops. When customers can’t afford repairs or abandon vehicles, shops need to clear their lots. Flippers get first dibs on anything worth fixing up. Same thing happens at towing companies - abandoned or impounded cars that owners never claim. The other edge they have is speed and cash. While you’re thinking about whether to buy something, they’re already there with cash in hand making offers. They use alerts and bots to monitor listings across multiple platforms 24/7. By the time most people see a good deal posted, it’s already been scooped up. Manufacturer lease returns are another source. When lease terms end, not all vehicles go back to dealers. Some get pushed to wholesale channels where flippers with dealer licenses can access them before they hit public auctions.
The repo market has been feeding a lot of these flippers lately. With auto loan delinquencies ticking up over the past year, there’s been a steady stream of repossessed vehicles hitting wholesale channels that most regular buyers never see. Flippers often have relationships with repo companies or know which auctions move the cleanest stuff before it gets to the public sales.
Plus, a lot of trade-ins that dealerships don’t want on their lots anymore are getting pushed to wholesale pretty quickly. Dealers are being pickier about what they keep for retail sale, especially with interest rates making financing tougher for buyers. So decent cars that might have sat on a dealer lot two years ago are now getting flipped to wholesalers within days.
The BHPH lots you mentioned are actually competing for the same inventory now, which has driven up wholesale prices but also means flippers are willing to pay more for better condition vehicles. It’s become a volume game for them
Honestly, a lot of it comes down to having dealer licenses or knowing someone who does. Regular people can’t access the big auto auctions like Manheim or ADESA where tons of decent trade-ins and lease returns get sold every week. You need dealer credentials to even walk through the door at those places.
I’ve noticed flippers also seem to have this network thing going on. Like they’ll buy from each other or pass along leads when they find more cars than they can handle. Some guy told me once that flippers will literally drive around neighborhoods looking for cars that haven’t moved in weeks, then leave notes on windshields with cash offers. Sounds weird but apparently it works.
The timing thing is real too. I’ve seen cars pop up on Facebook at like 2am and be gone by morning. Makes me think some of these people have automated alerts set up or something. Pretty frustrating when you’re just trying to find one decent car and these guys are treating it like a full time business. Not sure if there’s much regular buyers can do about it except maybe expand your search radius or look at less popular models that flippers might skip over.
