You’ve probably heard of house flipping.
It relies on scarce supply and red-hot demand.
But how does EV flipping work, who’s doing it, and is it a short-term trend?
Image Credit:Tesla
What Is EV Flipping?
EV flippers obtain their ‘“inventory” in a few ways.
Reservations
Some people reserve EVs with the express intent of selling them.
Image Credit: Phillip Stewart/Flickr
Just likeSneaker Bots enable scalpersto purchase items more quickly than a human could, timing is critical.
For example, the GMC Hummer EV has around 70,000 orders, and GM can produce 12 per day.
The earlier you are in the queue, the greater potential for flipping at a higher profit.
Image Credit:Rivian
Even with an early reservation number, you may not know when an EV will arrive.
You might be able to capitalize on geographic pricing differences.
A vehicle sold to settle an estate in the Midwest might be worth more on the East Coast.
Most buyers don’t want to have to pay off a loan in a private party sale situation.
Is EV Flipping Legal?
Whether it’s morally right… that’s another question.
Which EVs Are Best For Flipping?
Numerous factors drive EV demand.
The Seattle Timesreported on Tesla owners flipping their vehicles for a profit due to long lead times.
How Long Will EV Flipping Be Profitable?
However, wholesale (auction) pricing is starting to show signs of softening across the board.
While some people think EV flipping is nothing more than glorified scalping, it continues to be profitable.
As long as people have more money than patience, the trend will continue.
