[InvalidConflict]

So for people who have a 1-2 spot at there dealer, has anybody thought of flipping it? I know it's kind of a taboo subject but this thing might be worth some crazy money the second you drive it off the lot.


Kinda just thinking out loud, and sorry if it's been talked about already.

 

[Tronic]

Well when the Subaru STi announcement was made over here suddenly the asking price on the old version suddenly DOUBLED.

The follow on was 200 dreamers trying to sell their 10 year old STi for more than the new one was selling for.

Lets get real though nobody was buying them and then Toyota GR Corolla suddenly appeared and replaced it.

Things move on. If you cannot get a Corolla then move on something will replace it a year later as an option.

 

[qtb007]

So for people who have a 1-2 spot at there dealer, has anybody thought of flipping it? I know it's kind of a taboo subject but this thing might be worth some crazy money the second you drive it off the lot.

Kinda just thinking out loud, and sorry if it's been talked about already.

I'm sure there are some people salivating at the thought of doing it... and those people should get ***ked. Scalpers are useless leeches.

 

[worker1]

I'm #50 on the list at Longo (biggest dealer in the US) and I'm hoping to buy it to see if it will make a good daily. If i end up preferring my GTI then I'll sell the GR Corolla, hopefully at my cost.

 

[KanmuriDavid]

No matter how many units they sell, this car will become an instant classic. It's an engine with an incredibly high ceiling, making it ideal for tuning. Also, it has loose ties to the GR Yaris and WRC.

Keep in mind this will be likely one of the last cars of its era, i.e. combustion engine with a manual transmission. In decades, it'll be looked at as the last hurrah of "those good ol' days". As such, even if it's not the fastest, lightest, or most powerful hatch, it will still have a lot of historical significance.

However, after the dust settles, it may depreciate a bit before it appreciates. But it will never be worthless. Example would be the IS F. Given a few decades, it'll be a very unique car. Think about how people react to seeing a Cosworth or Renault 5 Turbo.

That being said, I don't plan to ever sell the car. So it's irrelevant to me what it could sell for.

 

[luluna]

I will hold my tongue on what I think of those who purposefully purchase limited commodities with the intention of exploiting the target audience...

It might sound lucrative on paper, but at the end of the day, is it worth it stress and time?

For dealerships, that stress and time is already built into their business. Anything above wholesale price is gravy, and that wholesale price is a lot lower than what we'll be paying.

After buying the car, unless you live in a tax-free state, you're paying at least $2500 EXTRA just to take possession of it - sales tax and registration. Depending on your states insurance requirements, you're also on the hook for insurance on a brand new sports car. You'll also have to pay a prorated excise tax.

Okay, let's say you sold it and made a profit. You have to pay taxes on that profit. You'll have to declare that sale so you can deduct it as an expense.

I'm sure there are other complications, but off the top of my head, those are it.

Is there a numerical figure that would make all that hassle worth it? Absolutely. But it's not so straight forward - there is risk in that it costs you to simple possess the car (which is why in the before times, car buyers had some leverage as cars sitting on the lot costs the dealerships money). What if just taking it home, someone glued to their phone hits you? Well, now there's an accident reported on the history and you'd be lucky to sell it the price you paid.

Lots of risk.

You'd also be a humongous butt.

 

[ArtJDM]

I wouldn't plan on it, but if a few months later, someone offered me like 60k for it or something stupid, I'd have a hard time turning that down.

 

[qtb007]

I will hold my tongue on what I think of those who purposefully purchase limited commodities with the intention of exploiting the target audience...

It might sound lucrative on paper, but at the end of the day, is it worth it stress and time?

For dealerships, that stress and time is already built into their business. Anything above wholesale price is gravy, and that wholesale price is a lot lower than what we'll be paying.

After buying the car, unless you live in a tax-free state, you're paying at least $2500 EXTRA just to take possession of it - sales tax and registration. Depending on your states insurance requirements, you're also on the hook for insurance on a brand new sports car. You'll also have to pay a prorated excise tax.

Okay, let's say you sold it and made a profit. You have to pay taxes on that profit. You'll have to declare that sale so you can deduct it as an expense.

I'm sure there are other complications, but off the top of my head, those are it.

Is there a numerical figure that would make all that hassle worth it? Absolutely. But it's not so straight forward - there is risk in that it costs you to simple possess the car (which is why in the before times, car buyers had some leverage as cars sitting on the lot costs the dealerships money). What if just taking it home, someone glued to their phone hits you? Well, now there's an accident reported on the history and you'd be lucky to sell it the price you paid.

Lots of risk.

You'd also be a humongous butt.

I don't think you'd have to report profit on it unless you did it often enough to make substantial money that the taxman would notice. I bought out my lease a few months ago and sold it for a $2000 profit (selling price - lease payments - buyout). Since this isn't a business for me, I won't pay taxes on that "profit".

 

[luluna]

I don't think you'd have to report profit on it unless you did it often enough to make substantial money that the taxman would notice. I bought out my lease a few months ago and sold it for a $2000 profit (selling price - lease payments - buyout). Since this isn't a business for me, I won't pay taxes on that "profit".

Legally speaking, you are required to pay taxes on profit over 600 (or was it 800?) . If you were audited, you would not have a good time. Unfortunately, we know that the IRS is only funded enough to audit and collect from the little guys. If you're not a little guy tax wise...yeah, 2000 profit if you make 7 figures is just a rounding error, lol.

(This is for the US - not sure about Canda where OP is from)

 

[holland1]

With my luck if I was to buy to flip the market would crash. Hmmm maybe I shoud.

I doubt you will be able to get much above msrp plus taxes for a core. Probably on a CE and definitely on a ME. I'm hoping to get a core then to trade it in towards a CE or ME next year.

 

[ryno9100]

Anyone who buys to flip immediately gets my stamp of disapproval and a stern look.

 

[Shoes357]

TBH the long term resale value is one of the draws to the car for me. However, like others have said I won't flip it immediately unless someone offers me crazy money right out the gate.

 

[ryno9100]

TBH the long term resale value is one of the draws to the car for me. However, like others have said I won't flip it immediately unless someone offers me crazy money right out the gate.

Same. I don't see myself selling the car, but if I need to 5years from now for whatever reason, something tells me this car will hold value.

 

[Wynorrific]

I can respect flippers when you buy a beat up pos and fix it up to sell again but for a new car? Just disrespectful and being an a-hole. Guarentee you we'll see many of them on Cars and Bids as we've seen with the Hummer EV, Rivian RT1 and others. The first Integra already popped up there and the guy JUST got it this month. He's getting absolutely flamed and so will people trying to flip the GRC. I like buying it knowing it won't depreciate much and may even appreciate but I'm not flipping it. If you're one of the first to get it and don't want it, just pass up on it so someone who actually wants one can get one instead of trying to make a profit on some poor soul

 

[Tokyotexan]

Hte

I'm #50 on the list at Longo (biggest dealer in the US) and I'm hoping to buy it to see if it will make a good daily. If i end up preferring my GTI then I'll sell the GR Corolla, hopefully at my cost.

Hate to break it to you, but you won't be getting one if you are that low on a list, I don't care how large the dealership is.

 

[gazoo]

I'll be mad at that person. But what can we do? People may think this is the best opportunity for them to earn a little, then when they sold theirs they will regret it after

 

[ccrook06]

Not many capitalists in here I don't plan on flipping the car, I've been wanting an efficient and fun daily for quite a while. No shame to those that do tho, I can't blame anyone for trying to make a profit in this system. My only stipulation with selling/flipping cars like this is do your best to get it to an enthusiast, if you're charging over sticker make sure it goes to someone who will appreciate it.

Resale will largely depend on how long they decide to produce. If it gets 5 yrs, I see them following standard depreciation trends for a manual hot hatch, maybe increasing slightly decades down the road. If there's less than 3 yrs of production I expect it to follow cars like the RS, deprecating slightly while in production only to go near or over MSRP once cars are no longer produced.

 

[MrBiggs]

I get the sentiment of people disliking the idea that someone would buy a limited item to turn around and make a profit from another consumer, but um... that's what this country was built on.

So it is a part of our lives and we all take part in it in various ways. It may not be as upfront as someone buying a GRC and immediately flipping it, but something as simple as running a vending machine is the exact same thing. You buy Skittles for this price and sell them for another price to a consumer. The convenience is what many will argue you are paying for, and the convenience of buying a GRC without the Toyota dealership shenanigans will come at a price.

But outside of all that... I personally am not looking to flip this car (Id just park my money in an R33/R34 Skyline and wait) the bonus of the car being desirable is that we all won't lose money on it as we own, drive, and modify it. That is the real benefit here because that is usually not the case. Now down the line, if any owner does need to sell, we get the benefit of the car has held its value, where you can essentially drive it for free.

Also, everyone can do as they please, I'm personally buying it for me to enjoy. What anyone else decides to do is also perfectly fine with me and their choice.

 

[qtb007]

Legally speaking, you are required to pay taxes on profit over 600 (or was it 800?) . If you were audited, you would not have a good time. Unfortunately, we know that the IRS is only funded enough to audit and collect from the little guys. If you're not a little guy tax wise...yeah, 2000 profit if you make 7 figures is just a rounding error, lol.

(This is for the US - not sure about Canda where OP is from)

I would think it would be like when your house appreciates. If you buy a car and use it as a daily driver for several years, the amount paid out with taxes and maintenance/consumables will make things close enough to a wash that the IRS doesn’t care.

They are unlikely to audit my standard deduction tax filing.

 

[luluna]

I would think it would be like when your house appreciates. If you buy a car and use it as a daily driver for several years, the amount paid out with taxes and maintenance/consumables will make things close enough to a wash that the IRS doesn’t care.

They are unlikely to audit my standard deduction tax filing.

One of the problems with the American tax system is that it is stupidly complicated. If you buy houses to flip, you would 100% be required to pay tax on the profits. If you sell your main residence, you're exempt up to a certain amount depending on your circumstances.

In the instance of a car being driven for several years, you are right. It's likely a wash (though if audited, if profits are made, you'll likely need to scramble for service / maintenance receipts to balance it out).

If you buy a brand new GRC and flip it in a month or two for a profit, there is no way maintenance expenses would cancel it out unless you sold it at cost.

At the end of the day, many file their taxes wrong - some as a mistake, some intentional (who actually reports their internet orders to pay sales tax?! I do, but most understandably don't), and some just don't know better.

If you're unfortunate enough to get audited, it won't be fun.

That is why people hate the IRS. They rather go after the poors to get that extra $500 in taxes, than to fight legal battles against those who are literally not paying their taxes that make 7+ figures. At the end of the day, you may never be audited. 🤷‍♀️ But officially...you would still be on the hook for taxes on the profits.