Thinking about getting into selling cars on the side

[Bens4vcobra]

I'd like to start buying and selling cars for a small profit, maybe even wholesaling. Not many cars, just about 5-10 a year. Problem is, unless you go out and really bargain hunt and can travel its tough without a dealer's license that lets you into the auctions. I have started to research how to get a dealer's license but its looking like its pretty hard. If I'm understanding it correctly, you have to have a lot to get one. States know people buy and sell under the table but they also limit how many titles you can transfer in a year. I'd like to do this legitimately. Any advice?

 

[vr4_007]

If I were you I would focus on a specific type of car which would lower your limit of cars sold per year which could avoid the need for a dealers license.

Dont get attached to them,..
I was in your shoes one time and before I knew it I had the 03 Cobra, 91 GT, 93 TT Supra and a 1969 Dodge Charger R/T and couldnt let either of them go.
I eventually got rid of the Supra, but I regret it now.

 

[03SoniCobra]

i looked into getting a dealer license as well..in the state i wanted to get one in, get this, they wanted $50,000 cash bond to put up to become a licensed car dealer...
i say just do it as a side deal...i have never heard of the state limiting the number of vehicles you can sell. hell you could buy a car and not even register it in your name really, right after purchasing it put it up for sale.

being able to get dealer and transporter plates would have been nice, but not worth 50k.

 

[spitin venom]

One of my friends buys cheap cars on Craigslist and flips them. He actually makes some decent side money doing it.

 

[4valvemach]

when you buy a car just don't sign your name on the title only the seller signs then you fix the car if it needs fixed and sell it, who ever buys it signs were you would have signed.

 

[Got Boost?]

when you buy a car just don't sign your name on the title only the seller signs then you fix the car if it needs fixed and sell it, who ever buys it signs were you would have signed.

illegal, but the best way to go about it.

 

[03SoniCobra]

there is nothing illegal about that...you were going to register it, but decided to sell it off instead...the county shouldn't make money off used car sales anyway..**** em

 

[thomas91169]

One of my friends buys cheap cars on Craigslist and flips them. He actually makes some decent side money doing it.

my buddies have been buying cheap cars off craigslist and parting them out. They got a 97 GST Spyder for like $3k, tried to get it to run but it kept giving them shit, so they parted the entire car out, made almost $8k (4k profit after accounting for shipping and parts cost that they tried to get it to run with). We are trying to land a deal on a 2g GSX for $1200 because the seller thinks it needs repair from catastrophic failure, it needs a head rebuild due to skipped timing! well throw a 2gB front on it and sell it for $7k, and if that doesnt work, another epic partout.

 

[Bens4vcobra]

there is nothing illegal about that...you were going to register it, but decided to sell it off instead...the county shouldn't make money off used car sales anyway..**** em

I'll try to check into that. There's also the issue of the IRS... I want to be honest and pay taxes on what I make, how do I go about that? I'm no accountant...

 

[Common]

My friend cracked 200k last year doing it on the side, incredible what you can do with a little bit of money to start, he started with 50k and after about 4 years in it, he cleared 200k as his part time job.

He buys in one of the biggest auctions in the nation(PA) and is extremely well connected with almost ALL the dealerships around.

He sticks with cars in the 8,000 to 20-24,000 range and does anywhere from 500$ per car, which is nothing but a quick turnaround and unload the car so your money isnt tied up with it, to anywhere in about 5, 6,000$ in profit, before taxes that is.

Word of advice, stick with Nissan's, Mazda's, Honda's and Toyota's as a starter and try to buy within the 10,000 limit as your max.
Buy simple colors, nothing that is "hate or love it" paintjob. Stick with silver, white, gray, dark blue, the simple ones, you get it.

His full time job doesnt make half what his part time brings in but he still keeps working both for now, I guess he is the "Cant put all your eggs in one basket type of guy"


Good luck op.

 

[Fastboy]

Guys I have thought of this also and know a guy that has been successful on a smal scale. This is one of the directions I will take in the next few years.

 

[NXSVTCOBRA]

OP, if you live in Alabama, you obviously haven't done all of your leg work. Do some more looking on Alabama's website


it can be good money it can be a disaster. I have a dealers' license and don't even buy, I make more money other places without having to depend on others (well the economy). It's lots of competition with the "professional" car lots out there, these guys do it everyday and have big overhead to pay so they make their money based upon volume. I got my license for other reasons. I deal closely with several dealerships in my area as most of them were/are my customers and some of them aren't moving nearly as much as they used to even the buy here pay here guys.

I don't want to steer you away but don't get into it if you're half assed motivated because you'll lose money quick trying to. Where in Alabama do you live?

 

[Bens4vcobra]

OP, if you live in Alabama, you obviously haven't done all of your leg work. Do some more looking on Alabama's website


it can be good money it can be a disaster. I have a dealers' license and don't even buy, I make more money other places without having to depend on others (well the economy). It's lots of competition with the "professional" car lots out there, these guys do it everyday and have big overhead to pay so they make their money based upon volume. I got my license for other reasons. I deal closely with several dealerships in my area as most of them were/are my customers and some of them aren't moving nearly as much as they used to even the buy here pay here guys.

I don't want to steer you away but don't get into it if you're half assed motivated because you'll lose money quick trying to. Where in Alabama do you live?

I'm in Mobile. You sound like you concentrate primarily on wholesaling. I can see where you'd get your ass handed to you as soon as the car market dips a little. I mainly wanted to this on the side, with cash and as I wanted to so there isn't much risk involved. I assume you are also in AL, where abouts do you live?

 

[NXSVTCOBRA]

I'm in Mobile. You sound like you concentrate primarily on wholesaling. I can see where you'd get your ass handed to you as soon as the car market dips a little. I mainly wanted to this on the side, with cash and as I wanted to so there isn't much risk involved. I assume you are also in AL, where abouts do you live?

Phenix City. I have a license mainly for me. I don't wholesale as much, but the market I target is shot, but slowly getting better.

 

[Bens4vcobra]

Phenix City. I have a license mainly for me. I don't wholesale as much, but the market I target is shot, but slowly getting better.

I see, that sucks. You must target larger vehicles.

So how did you get a license without a lot and a bond?

 

[jf4boogie]

My friend cracked 200k last year doing it on the side, incredible what you can do with a little bit of money to start, he started with 50k and after about 4 years in it, he cleared 200k as his part time job.

He buys in one of the biggest auctions in the nation(PA) and is extremely well connected with almost ALL the dealerships around.

He sticks with cars in the 8,000 to 20-24,000 range and does anywhere from 500$ per car, which is nothing but a quick turnaround and unload the car so your money isnt tied up with it, to anywhere in about 5, 6,000$ in profit, before taxes that is.

Word of advice, stick with Nissan's, Mazda's, Honda's and Toyota's as a starter and try to buy within the 10,000 limit as your max.
Buy simple colors, nothing that is "hate or love it" paintjob. Stick with silver, white, gray, dark blue, the simple ones, you get it.

His full time job doesnt make half what his part time brings in but he still keeps working both for now, I guess he is the "Cant put all your eggs in one basket type of guy"


Good luck op.

Florida also has the same auction which would be a lot closer for you to attend.

The only issue some guys run into is for the "lower end" vehicles you cant offer financing which a lot of the customers look for and possibly cant get at a traditional lending institution. Thats where some of the lots will have you beat.

I think in NC you can only buy/sell 7 cars without a dealers license (havent checked lately). But I do know that having an open title is a big no-no. They get pissy b/c they cant collect their fees/taxes on the transfer.

Good luck! There is def. money to be made, but be careful and hope you dont buy any turds!!

 

[Jefe]

Might be the worse timing ever to consider this. Would of worked a year or two ago but not now. Unless youre going to buy and sell Prius'

 

[Sonic605hp]

One of my friends buys cheap cars on Craigslist and flips them. He actually makes some decent side money doing it.

That's exactly what I do and have made a good buck doing it.....good tax free money; you just carry the title from the previous owner clean and tune the car and of it goes I usually make $700-$2k on the cars; you just have to troll a lot and look for deals and be willing to travel 1-3 hours sometimes for a smoking deal.....I sell Ford Focus' and usually have them less then a week after I post them.

 

[Bens4vcobra]

That's exactly what I do and have made a good buck doing it.....good tax free money; you just carry the title from the previous owner clean and tune the car and of it goes I usually make $700-$2k on the cars; you just have to troll a lot and look for deals and be willing to travel 1-3 hours sometimes for a smoking deal.....I sell Ford Focus' and usually have them less then a week after I post them.

Do the buyers mind that you are "floating" the title? Do they question it when its not your name on it? I don't want to appear underhanded and someone report me to the state.

 

[01svtL]

I just sold my Audi s4 for almost 2k more than I paid for it (found and re-sold on Craigslist), 3 weeks after I bought it. (I never registered the car in my name, and "buyer" was left blank on the title, which was not originally intended, but ended up being exactly what I needed to happen) Funny thing is, I listed it 2 weeks after I bought it, and had a buyer the next day. I had to wait another week to find a car to replace it so I could drive to work. I sold the Audi and bought an 02 540i sport the same day (also from Craigslist) for over 3k LESS than the car is worth according to KBB. I would turn around and try to resell this car for 2,500-3k more than I just paid for it, but it's in really good condition after cleaning up the inside some, and I actually like driving the car. I have no idea what I would replace it with ...