Glossary
Car flipping glossary
Plain-language definitions for independent Marketplace flippers. For deal math, start with Max Buy.
- Max Buy
- The highest purchase price that still hits your target ROI after recon and fees. Max Buy = Expected Resale / (1 + Target ROI) − Repairs − Fees − Transport.
- ARV (After Repair Value)
- Estimated value after recon is complete. Closely related to Expected Resale when you retail the car yourself.
- Expected Resale
- What you realistically expect to sell for in your hold window — usually more conservative than the best asking price online.
- ROI
- Return on investment on total cash in (purchase + recon + fees + transport), not on purchase price alone.
- Recon / Reconditioning
- Work to make the car retail-ready: mechanical, safety, cosmetic, detail, inspection prep.
- MMR (Manheim Market Report)
- Wholesale valuation benchmark commonly referenced at Manheim auctions. Useful context — not identical to Marketplace retail.
- Gate fees
- Pickup / release charges at auction yards. Part of Fees or Transport friction depending how you model cash out.
- Hammer price
- Winning bid before buyer fees, gate, transport, and recon.
- Clean title
- Title without salvage/rebuilt/lemon brands (definitions vary by state).
- Salvage / rebuilt title
- Brand indicating prior total loss and possible reconstruction. Smaller buyer pools and extra risk — see the salvage guide.
- Comps
- Comparable vehicles used to triangulate market value.
- Float
- Cash tied up in inventory until sale. Profit/day matters because float can flip again.
- Days on lot / hold time
- How long from purchase to sale. Affects profit per day and opportunity cost.
- Buy / Negotiate / Caution / Pass
- FlipDrive IQ decision buckets for acting on Max Buy and risk.
- KBB / Edmunds
- Consumer valuation references. Use as inputs alongside local comps — not as guarantees.
Definitions are educational. FlipDrive IQ is not an appraisal service.