Classic Cars and the Shadow Flip

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Shadow flipping classic cars is crappy.

That is the process of reselling a car before a transaction is registered with ICBC. For classic cars it appears there is no loophole like with the housing market, so it is simply tax evasion.

A Shadow Flip is unfair to the seller and it can ruin the connection between buyer and seller which can be meaningful for tracking history and provenance.

To avoid being the target of a Shadow Flip, it is neccessary to understand how the process works:

Buyer #1 (the “dealer”) “purchases” the car from the original owner, but the ICBC transfer APV9T papers are left incomplete, specifically the selling price area that is supposed to be filled out and completed and signed by the seller(s). Buyer #1 (the “dealer”) then searches for Buyer #2, another incedental victim who might have been able to pay less for their car. The second deal is reached and the selling price from Buyer #1 to Buyer #2 is put on the original seller’s ICBC transfer paper APV9T. The transaction is complete and as far as the goverment is concerned, the seller sold directly to buyer #2, leaving buyer #1 with unregistered profit.

To avoid being the victim of a Shadow Flip in BC:

As a seller, always competely fill out the seller’s portion of the ICBC transfer APV9T papers with the correct selling price.

As a buyer, always inspect the APV250L portion of the registration documents and only release funds to person(s) listed, after they sign them.

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