Guide
How to calculate Max Buy on a used car flip
Max Buy is the highest price you can pay and still hit your target return after recon and fees. Miss it and the flip was dead before you turned the key — or before you even left the driveway.
Max Buy = Expected Resale ÷ (1 + Target ROI) − Repairs − Fees − Transport
Why Max Buy beats “gut feel”
Marketplace listings train you to fall in love with the car. Max Buy forces the math first: what will it really retail for in 30–45 days, what will it cost to get there, and what return do you need on the cash tied up. Independent flippers who skip this step overpay under pressure — then wonder why the “$2,000 flip” barely covered tires and a slow month.
Ship the number before you ship a deposit. If the ask sits above Max Buy, your job is negotiate or walk — not rewrite Expected Resale until the deal looks pretty.
Worked example
Say Expected Resale is $12,000, repairs $1,200, fees $350, transport $150, and you want 20% ROI.
- Other costs = $1,200 + $350 + $150 = $1,700
- Resale ÷ 1.20 = $10,000
- Max Buy = $10,000 − $1,700 = $8,300
If the ask is $8,500, you negotiate ~$200 or walk. If the ask is $7,900, you still inspect — but the numbers clear the bar. Plug the same inputs into the FlipDrive IQ Calculator to see profit, ROI, profit/day, and a Buy / Negotiate / Caution / Pass verdict.
Step-by-step before you message the seller
- Set Expected Resale from realistic local comps — not the highest sold last month.
- Price recon honestly (detail, tires, brakes, battery, paint touch-ups you know you’ll do).
- Add fees and transport — auction lane, title, temp tags, tow, payment processing.
- Pick your target ROI (many flippers use 15–25%; see profit & ROI explained).
- Compute Max Buy, then bucket the ask with the Buy / Negotiate / Caution / Pass framework.
Common mistakes
- Using best-case retail instead of a realistic 30–45 day sell price
- Forgetting auction fees, temp tags, detailing, or tires
- Chasing dollar profit instead of ROI on total cash
- Ignoring days on lot (profit per day matters when capital can flip again)
- Negotiating without a walk-away number written down
FAQ
What is the Max Buy formula?
Max Buy = Expected Resale ÷ (1 + Target ROI) − Repairs − Fees − Transport. It is the purchase ceiling that still hits your target return after cash costs.
What if the asking price is above Max Buy?
Negotiate toward Max Buy or pass. Do not invent a higher Expected Resale to make the spreadsheet feel good.
Does Max Buy replace an inspection?
No. Max Buy is decision math. Always inspect, confirm title, and verify recon before you wire money. FlipDrive IQ is decision-support — not an appraisal or guarantee.
Do this next
Run the free calculator with your real numbers. When you want market comps and repair exposure instead of guesses, run a full FlipDrive IQ analysis.
Related guides
FlipDrive IQ is decision-support software, not a vehicle inspection, appraisal, or guarantee of resale value. Verify prices with KBB, Edmunds, and local comps.