Thinking about getting into selling cars on the side

[Sonic605hp]

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.

I have never had anyone complain I just tell the I found a good deal on the car, detailed it and sold it again....I've sold to cops and they haven't said a word, in fact the one guy said "man I wish I could work on cars so I could do that."

Tax free $$ FTW.

 

[shhak]

We've (my dad, brother, and I ) got a dealers license in TN. We're in a little "backwoods town" so the car market is pretty tough. Floating the titles is illegal. If you don't think it is, let a license investigator find a car in your possession with an open title and see what he says.

My dad has had a car lot since about 1970 and sold over 7,000 cars in that time. Then in about 1990 or so he closed down. But last year, we bought 75 of those FEMA campers in June so we needed to get a dealers license again to avoid having to title all of the campers in our name and pay taxes on all of them. Within 90 days, we'd sold all 75 of the campers and had made over $175k profit after all our expenses.

There are ways to make money buying, selling, and trading cars, trucks, campers, bikes, etc... You just want to make sure you go about it legally. Just one little fine can take you from making money to losing your ass.

 

[Bens4vcobra]

We've (my dad, brother, and I ) got a dealers license in TN. We're in a little "backwoods town" so the car market is pretty tough. Floating the titles is illegal. If you don't think it is, let a license investigator find a car in your possession with an open title and see what he says.

My dad has had a car lot since about 1970 and sold over 7,000 cars in that time. Then in about 1990 or so he closed down. But last year, we bought 75 of those FEMA campers in June so we needed to get a dealers license again to avoid having to title all of the campers in our name and pay taxes on all of them. Within 90 days, we'd sold all 75 of the campers and had made over $175k profit after all our expenses.

There are ways to make money buying, selling, and trading cars, trucks, campers, bikes, etc... You just want to make sure you go about it legally. Just one little fine can take you from making money to losing your ass.

Unfortunately, I don't have the resources (or desire) to buy a lot and put up $50k for a bond. Both of which are required to get a dealer's license.

I think if I do this, I'll start with small value cars and only do a few a year and see how that goes. The major advantage to getting the dealer's license is being able to go to the auctions.

 

[shhak]

Alabama is actually one of the easiest states to get a license in. You can actually just rope off part of your yard and setup a desk in your house somewhere. As for the $50k bond, you get what's called a surety bond. It's a 50-100k bond but it only cost you like $150 or so. They do a background check on you and that sort of stuff. All the bond really does is covers others when you write checks basically. It just assures people that your checks will be good.

 

[Bens4vcobra]

Alabama is actually one of the easiest states to get a license in. You can actually just rope off part of your yard and setup a desk in your house somewhere. As for the $50k bond, you get what's called a surety bond. It's a 50-100k bond but it only cost you like $150 or so. They do a background check on you and that sort of stuff. All the bond really does is covers others when you write checks basically. It just assures people that your checks will be good.

Yikes thats scary I didn't think of buying a surety bond considering I'm an insurance broker.

As far as the lot goes, I thought the state sent out an inspector to look at the property, make sure of proper zoing, etc... is this not the case in Alabama?

 

[shhak]

There are a couple lots close to me but on the AL side that are just setup in the guys yards. I'm not sure about the inspector, but I know TN has an inspector who likes to drop in every once in a while. You may want to check into getting a wholesalers license. I dont' think you actually have to have a lot that way, but I could be wrong.

 

[Bens4vcobra]

There are a couple lots close to me but on the AL side that are just setup in the guys yards. I'm not sure about the inspector, but I know TN has an inspector who likes to drop in every once in a while. You may want to check into getting a wholesalers license. I dont' think you actually have to have a lot that way, but I could be wrong.

I've not heard of a wholesalers license. I'm sure that prohibits me from selling to the public as that would make me a dealer.