Can You Make Money Buying Cars From Auctions? A Real-World Example
People often ask me, “Can you make money buying cars from auctions?” The answer is a resounding yes, and I have a real-world example to prove it. Let’s dive into the details of a 2024 Toyota RAV4 XLE that I purchased from an auction.
The Purchase: 2024 Toyota RAV4 XLE
I paid $17,000 for this vehicle at an auction. The car had been in an accident, which primarily affected the driver’s side doors. We also had to replace the quarter panel. Both the left and right roof airbags had deployed as well.
The Repairs
We went through a series of necessary repairs:
- Both driver’s side doors were replaced
- The quarter panel was replaced
- The roof airbags were reset
After all these repairs, the car looked as good as new. You can even see a picture of the VIN number to verify that we are talking about the same vehicle. The total repair costs came to about $6,000.
Valuation and Profit
This particular RAV4 has less than 5,000 miles on it. When you take a look at Google, you can see that the starting price for a 2024 RAV4 XLE is at least $35,000. Even if we go a year older, a 2023 model with more than 20,000 miles is still valued above $28,000.
Here’s the breakdown:
- Cost to purchase: $17,000
- Repair costs: $6,000
- Total investment: $23,000
Given that a 2023 model with significant mileage still sells for around $28,000, we can infer that a 2024 model with less than 5,000 miles can easily fetch at least $28,000-$29,000.
Conclusion
So, to answer the question definitively: Can you make money buying cars from auctions? Absolutely. This 2024 Toyota RAV4 XLE is a perfect example of how, with the right investment and repairs, you can turn a profit. I anticipate making a decent profit from this investment, and it goes to show that auctions can be a lucrative opportunity for those who know what to look for.
