Joel So the dream to have a part time business flipping cars is not viable in most states because of the few cars that can be turned in 12 months. Do i need a dealers license? What can we do? @WPBF25News Look at all this damage. Don. Because I would be registered under the dealer license in the program. By Gerrard Kaonga On 4/30/23 at 6:55 AM EDT. The the LLC is the owner of the vehicles. So Im confused is buying and selling excessive amounts of used cars throughout the calendar year with the intentions of making large tax free profits illegal? Don. We and our partners use data for Personalised ads and content, ad and content measurement, audience insights and product development. The Sun reports that fines in the U.K. start at 100 pounds, but can run as high as 5,000 pounds, or $6,500. He wants the money back he claimed to have paid for the car. So they are driving a car still titled to the original seller with no insurance. 4. You just sign a lease for your lot with the option, it is valid only after you receive approval for your license. Video of Florida Tornado Flipping Car in Air Viewed 1 Million Times. Thats it. So this person is saying, Ill sacrifice my personal integrity for money. He uses other people to post on Craigslist because he probably knows that the Enforcement Officers for the DMV regularly check auto ads for repeated contact info. Thank you. And youre selling to other states? The buyers understand they may be buying a loser. Two, you need to have some money saved up. I see places for rent on Craigslist everyday that meet these requirements and they dont look like car lots. Heres what the State of Arizona requires for business location: Established place of business must be a permanent enclosed building or structure, owned either in fee or leased, with sufficient space to display two or more vehicles of a kind and type that the dealer is licensed to sell. Is that illegal? Watch Tornado Flip Car in Florida 00:46. Similarly, I was driving a 2014 Volkswagen Jetta SportWagen, which cost me $13,000 out the door. (I looked at renting a dealers license, but everything is geared toward cars). What if me and 3 or 4 relatives buy 3 cars a year and sell them. Sorry for the delay in answering. Watch this video https://www.youtube.com/watch?v=mBvXM_S-t_8 He does a great job of explaining why it can be difficult. No one can. During the 2015 legislative session, the Florida Department of Highway Safety and Motor Vehicles (DHSMV) included language in CS/HB 7055 that increases fines for curbstoning from $100 to $500 per violation. Now, if flipping cars turns out to be a side hustle you're interested in, then it might be worth it to apply for your dealer's license. I simply want to sell them at a wholesale price and with an it is what it is mentality. The length of time it takes to get a car dealer license in Florida can vary depending on a number of factors, such as how quickly you complete the required steps and whether there are any issues or delays with your application. Does making a profit play a role? And finally, as the bonding requirement in AZ for a dealers license is 100k what would a general estimate of the bond cost be? Start by looking up the value of the car you want to flip in pricing guides such as Kelley Blue Book and Edmunds. If you are buying and selling several cars a year (flipping) then you are open for an investigation by the state dealer licensing group. 1. We are trying to figure out what to do. Don please clarify or point me to the regulations: for an individual in the state of New York, if five or less vehicles are sold in a calendar year, a dealer license is not required, correct? He was scammed but not by her. If I get licensed and want to buy cars and sell them online is there anyway I can get out of having to have a physical business? You need to ask your question directly to the California DMV. G Davis, you may want to read through these from the State of Indiana website, http://www.in.gov/sos/dealer/2572.htm?WT.cg_n=SOS_billboards&WT.cg_s=092711_04_LAD. 2.3M views 1 year ago In this video i go over the entire process of how to flip car. You are the problem with this country. It is however, in poor taste. 43-47-2 (17)(A) of acting as a dealer, it opens the door for the Sales & Use Tax Division to come after you for failing to collect and remit sales tax. You wont make a profit on your very first flip, so you need to have some money to cover your costs. Therefore, if you plan on flipping cars in Florida, you are allowed to sell up to five cars in a 12-month period without a dealers license, but if you exceed that amount, you are required to have a dealers license. I am currently a licensed retail dealer in California and I have a question. Some states, its zero. Sorry, I cant answer that. I wish I had an easy answer. Therefore, if you plan on flipping cars in Florida, you are allowed to sell up. See photos, videos of tornado flipping cars and destroying homes in Palm Beach County. The open title ability (although it is technically illegal to leave a title open when selling privately in Arizona), and the total lack of enforcement of the time limit in which a private buyer has to register/title a car (I believe it is about 10 business days in this state) compounds this issue. I would NOT have a license. In the example you gave there is no issue. I was in the hospital for 12 days. Another option is to approach the District Attorneys office in your town or county. You are a clown. I emailed the AZ Motor Vehicle Dealers Licensing Unit with this question: In Arizona, can an individual buy a used vehicle, at an auction, using a friends AZ dealer license then turn around and sell that vehicle,at his own home? Hope that helps. Technically not. I live in the Bay Area. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Absolutely. I dont even know what it means. PLease let me know what happens. It looks like the storage rooms you see for individuals except they are 20X40 with large roll doors on each end to drive vehicles into. They are buying high end cars and shipping them overseas. Be here are some telltale signs. But its not sensible or worth the trouble for us to ship our old vehicles to the other island for the purpose of trade in when we can accomplish the same by selling to a private party. Manuel Yes, a dealer may pay fees to receive dealer plates. A second line of strong to severe thunderstorms is forecast to develop during the early morning hours and move across the area through Sunday afternoon.. To answer your question. Thanks for your question. Arizona changed the rules this year for the maximum number of cars one can buy/sell without a license. So that means 11 is the max in 12 months, not 12 as you said. Please help me out. I live in Texas and I would like to know what is the best thing to do in this case! If you buy and sell 4, or 5, or 6 in a year then you can be found. This seem ludicrous. Davian BS again. Your website has been very informative ( I didnt know there were any restrictions on selling cars for a profit) but I have one question. All financial products, shopping products and services are presented without warranty. Any person violating these licensing requirements is guilty of a second-degree misdemeanor, punishable by up to six months in jail and/or fine of $500. I show you that you dont need a lot. First caution. And I could go on and on. Video shows a car being flipped over by a 'spin up' tornado near Palm Beach Gardens, Florida. We do have a statute which limits individual sells to no more than 5 per calendar year. You need to have a business locations that meets the requirements of your state. And then theres the sales tax and registration fees that will cut into your profits. If you have friends in Washington I would ask them to contact the title division of the DMV and ask how does a owner remove his information from the title records. This protects consumers from sellers that really should have a dealers license but dont want to or cant meet state regulations. Basically, so I need make all title or title of all cars in lot under my name after buying from someone else? The only folks who will buy a vehicle without seeing it are collectors and even then they will usually fly to the location of the vehicle to view it. I will contact you directly by email to help provide you more information about what to do. Problem: the negotiating and closing of the deal must take place at the dealer location. Its okay because I am paying the registration tax. They want to see it, touch it, drive it and negotiate. I would call them. However, there are a few exceptions. Buying cars on Craigslist from individuals can be very problematic as you have found out. I declare my $1,000 as income to the IRS and pay all taxes. Note this is called a Shared dealers License Program. Don. Some states u say are 2. The footage, shot from within another car, showed debris swirling around in the street as cars are pushed by the powerful gusts. (1) It can be a high-back or a backless booster seat. If you violate the state statutes and buy and sell for profit ONLY, then a person can get into legal trouble. The regulations as I read them tend to favor the consumer in most states. If i purchase a vehicle in CA, advertise it online, can anyone in any state purchase it? Car dealers have many special interest groups and lobbyist in D.C which is why there are many favorable regulations. Hi Don, thanks for your website information. All fine now. Am i able to sell cars online in any state? So you need to contact each state and find out. Also there are companies that will co-op you with a dealer in your state. Great information here, Don, but what about Colorado dads like me who arent flippers/curbstoners but who sometimes sell three or more titled/registered motor vehicles every year (trailers are defined as motor-vehicles in Colorado (ColoradoRevisedStatutes: 12-6-102). In light trucks, the corresponding reductions are 58% and 59% respectively. Also, for purposed of clarification, you stated that a bond is a form of insurance. Otherwise I would think they would say NO. The titles are in the databases of all vehicles sold in a state. Thanks for your question. I want to know if I have to complete the buyer fields or can I just leave it blank for the new owner who buys the vehicle from our non-profit. Well, as of now i have sold 2 small classic trailers on ebay and the customer never came in person. I would go to the dealer and ask him what he knows about the vehicle. It is legal when applied according to the laws in your state. This situation wont last forever, says Karl Brauer, iSeeCars executive analyst. Buying a car this way gives you some protection (the dealer has to follow state law) versus almost no safeguards when buying from a private seller. Julies writing has been published by USA Today, Business Insider and Wired Insights, among others. More specifically can a dealer sell cars in an area where both they and their customers dont live? Is there something Im missing? For example, an individual Colorado seller simultaneously advertising more than two vehicles violates state law (which limits private sellers to no more than two vehicle sales a year). I understand the desire to protect buyers, but what about my rights? five or more motor vehicles within Team up with a local car dealer to do the paperwork for you. Check with the source of the rules. Main timing for activity would be sunrise-mid morning for NW areas, and late morning-early afternoon for the east coast.#Flwx https://t.co/CWs2b0bVpz. It means, I want to operate illegally and probably wont get caught, right Don? But many folks dont know that many states allow zero. Joey Yes, what you are saying would be legal but if you exceed the number of vehicles a year and are doing it as a business, even part-time, than a license IS REQUIRED. https://connect.ncdot.gov/business/DMV/pages/car-dealers.aspx, My resources at https://dealer-license.com shows you the 12 steps to get the license to be legal. If my brother gets dealer license in California, can I work there as salesman without valid drivers license as it is revoked! My questions are as follows; Where to purchase it. I would like to just get rid of it but cant sell it without it being registered. Estimate all fees and the cost of any work that has to be done to the car. If you are considering flipping cars, it is important to consult with an attorney to ensure that you are not violating any laws. Requirement specifics are set by laws, statutes and rules in individual licensing agencies. I was looking into getting licensed to legally buy and resell cars in the state of California. Thanks for your comment from the Idaho Department of Transportation. You cannot use your home for the dealer business unless your residence is zoned for commercial use. So to sum it up, if buying a car off someone who cant afford the fix and I fix the problems 100% correctly, then I feel I can sell it to put food on the table. At the 4:00 4:12 minute time in the video, I say you must not believe everything you hear or read on the Internet (including me) and to educate yourself by contacting your state dealer licensing board. Wholesale, Retail Dealers, rental companies, banks, etc use the services of dealer only auctions to find a buyer for their vehicles. No dealer would jeopardize his license to put an inexperienced person on his license. I would have to keep the vehicle at the dealership and show it there and the actual transaction would have to take place at the dealership. Although I havent done an exhaustive legal analysis, its likely that in those states that preserves the peoples legal right to buy and sell cars, no business license is required. Most states have a statement, that says completing a tille with false iformation (youre not a dealer) is reagarded as a felony. Can I count parts I have accumulated and use against the sale price? They will usually want to see the vehicle. In my state there are non-profits who resell donated vehicles and do not need a dealer license. A tornado in Palm Beach Gardens, Florida, has caused devastation in the area and flipped multiple cars. I have four C-corp company owned vehicles. I plan on liquidating about 10 of these vehicles. Note the flipped car! I keep seeing titled and registered however in Virginia you are not forced to register a vehicle after taking a title into the DMV and having it put in your name. , such as Carvana, Shift, Vroom and CarMax. Of course I want to get my license before I proceed, but is there anyway I can forgo having to pay for a lease on a lot? Between the rent, utilities, insurance, equipment, lag time for an actual profit, there is a significant need of funds to float the business. Its in the Dealer Regulation Manual for NC. I always ask these guys what do you do about insurance. As a matter of fact one may spend a lot of money on repairs then have to sell his car and actually lose money! Youre right about your state but not all states have that high a limit. Are you registering, titling, and paying applicable sales taxes for the car you purchase in your name? Three, you need to be patient. I did obtain from tag agency information on the previous owners, which Im trying to find to help. You may sell cars to any person in any state. Find a cheap location that meets the requirements, not what you think a car lot should look like. I said this was wrong. Oh, also check with the state: Is it per year or per 12 month period? On behalf of another and for commission, According to Florida statutes, "in case of repossession of a motor vehiclepursuant to the terms of a security agreement or similar instrument, an affidavit by the party to whom possession has passed stating that the vehiclewas repossessed upon default in the terms of the security agreement or other instrument shall be considered satisfactory In addition, Florida is a hot and humid state, which means that the surfaces on which cars are flipped are generally more wet and slick than in other states. The twister continued to wreak havoc through the city, and caused a massive vehicle pile-up when it smashed into the Palm Beach Gardens apartment complex, footage shows. Hi Don. My husband said no, because if she takes the title, I wouldnt have a legal leg to stand on and I would never hear back from them. donmassey@gmail.com Don. But I cant prove a negative. ORLANDO, Fla. Several people stopped to help after a car flipped upside down during a crash on Interstate 4 in downtown Orlando. If he bought them new he didnt make a profit Clayton.. A business location is always required. Thanks, quite great article. How do I go about finding a small commercial storage unit for cheap to start a dealership? Any Normally I dont read article on blogs, but I would like to say that this write-up very pressured me to take a look at and do so! new or used motor vehicles, or used mo I mean you died 3 years ago. Brandon CoPilot helps you avoid any tricks, traps, and scams. We've received your submission. I specifically asked can the dealer plate used on cars and trucks be used on on class 8 trucks. Any buyer or seller who knowingly and willfully violates this subsection with intent to commit fraud commits a misdemeanor of the first degree, punishable as provided in s. 775.082 or s. 775.083. If you wish to deal with repossessions, then yes, start a loan company. Don. Jerry Fisher. . If you buy a car however as an individual, you must register and title it and pay fees and taxes. There are no prescribed height or weight limits. Ive paid the sales tax and started the registration process with fees paid and after Ca. Montana is zero. Since you are buying the vehicle as an individual living in Utah, the laws of Utah say YOU must register and license the vehicle in Utah as a retail buyer. Florida actually has a number of regulations dealing with selling a car on your own. The laws and restrictions were written to protect us as consumers and to control and protect dealers. But I would think most of them are actually honest. The majority of curbstoners are not dealers. Read other posts on here to see how flippers have seriously affected individuals financially. Im in Oklahoma, Paul You can find cars at auction, on Craigslist, or on eBay. Is there any type of specialty car license that applies to this type of sale? (Yes we know Miami is mislabeled on this map)Another active weather day is expected in SFL with strong winds, hail, and even a few tornadoes possible. Posted on Feb 26, 2013. Real estate dealers are also barred from completing a section 1031 exchange . It is illegal to transfer title to a motor vehicle when the purchaser's name does not appear on the title. Then, if it sounds probable, he will call a particular person back and then schedule a time and day for that potential buyer to either meet him up at the corner or come by his home to check out the vehicle he has for sale. I think its an unfair requirement. The question is how does the state prove it? A dealer NEVER pays registration fees on a vehicle so dealer plates dont save on registration fees. 1 Like. He gets the potential buyers to call a phone number and they have to leave a message. In addition, youll also need to provide the DHSMV with a copy of your drivers license, proof of liability insurance, and a copy of your car dealers license, if you have one. The license plates are in the name of the registered (titled) owner. The use of the word shall has even gone to the Supreme Court. As noted on the website, GA is zero flips. The bill also allows the governing authority that authorizes the tow of a curbstoned vehicle to keep the fines collected. This can make flipping cars more challenging, but it also means that there is more potential for a car to flip successfully.
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