Flipping a Toyota RAV4 - Wise Investment or Fraught with Risk?

Hey fellow OzBargainers,

I'm hoping to tap into the collective wisdom here to discuss a potential "investment" opportunity that has landed in my lap.
I decided to ask here because I believe our collective objective to being on this great website is to find a great deal, and that we can also sometimes be financially risk averse.

Background

In March 2022 I ordered a Toyota Rav4 via Novated Lease at work. We were told there was a lead time of ~6 months.
It was a Hybrid 2WD Blue XSE with tinted windows, weather shields and rugged floor mats.

Following the second rate hike in June-2022, we cancelled the car order, and took many actions to extend our financial runway given that the yield curves were suggesting that rates were going to go up to 3-4% in a really short amount of time. (Was worried there was going to be a recession)

Well, low and behold, 15 months later, we're called by the dealership, our car arrived. Apparently it wasn't cancelled and as such, our car was available to re-purchase with basically instant delivery. The option is ours, we were told that there is a massive wait list of 18-24 months and that this car would be gone in a heartbeat if we didn't want it.

Since the original order, the car has been upgraded to the 2023 model, which has a bigger infotainment screen + USB C ports everywhere now. This also means that the car price went up, so we were offered to either go novated lease for ~$48k or buy it outright for $52k.

Opportunity

Based on a search in the Sydney area, I'm obvserving that 2023 Rav4 XSE are quite rare.
Infact, even the 2020-2022 vintage of Rav4 hold their prices surprisingly well.

And nearly all listings of 2023 Rav4 XSE on carsales are referring to made-to-order lead times.

There is one, however listed ready to drive off the lot for damn near $70,000!

Now, we're a frugal lot, and while we do need a car, it is definitely not a car with a $52,000 rrp price tag.

That said, I'm entertaining the idea of reselling it. Take a hit on the insurance cost as well as any associated costs to sell the car.
But seeing that the premiums on cars that are available for instant pickup is very tempting.

The potential for a $10k-$18k profit is very attractive. It would mean that we could buy a new family car with the proceeds.

Concerns

I'm weary of the risks though, how does one even receive $60-70k from a private buyer?
What if i crash or scratch the car before sale?
What if I cant find a buyer and we end up in a recession?
I guess the risk-free rate would be what a dealer would give me for the car, which would basically be near the RRP anyway considering the lag in deliveries.

Love to hear everyones thoughts.

Poll Options

  • 311
    Do it
  • 43
    Dont do it

Comments

    • Hey can you PM me about wholesaler?

  • I would love to meet the kind of people who would pay 60k plus for a Rav4, I have lots of questions.

    • They would’ve paid more. The broker bought it for 60 which means the buyer is likely above 65?

      • Could be an insurance replacement so profit is minimal for them.

      • Yeah, ur right that’s why I said 60k plus. Then again, Mazda are trying to sell their suvs for 80k plus

Login or Join to leave a comment