If i buy and sell a car for profit !?

(2012-02-04 15:30:13)

1. SA_MAN Says: I dont know much about the car sales department but ive got some money coming my way, and id like to invest in the car sales biz... now if i want to buy and sell for a profit cant i just buy it than sell it the next day ? ive done alil research and in the state of TEXAS, they will only giv u a dealers license
if u hav a place to hold 4 to 5 cars that the state of texas know about it cant be from your home... so how can i do this with out a dealeres license ? id like to buy one at a time before i buy multipul cars... How do i get started ????????????????????????????????????????…

2. Never Says: You cant legally do what you are talking about without a dealers license.

You have to title each car in your name, wait for the new title to come back and THEN you can sell it.

Unless you deal with "open" titles and that's illegal too. It happens but its illegal.

Id say just buy a car, title it, wait for it to come back & then sell it. If you make money, rinse & repeat a few times.

When you get to 5-6 you run into potential problems because you aren't supposed to buy & sell any cars for a profit without a dealers license.

But, I also know that most states have no way of keeping up with who sold how many during any year.

I titled my first few cars and later became a wholesale only dealer and then upgraded to a retail dealer later. This was MANY years ago and now, its gotten a lot harder and they require garage liability insurance, a land line phone in your business name & so forth.

I used to be pretty good about getting around many or most of the rules. But they kept making the rules tougher & tougher.

I went without insurance for a LONG time and was very lucky. One accident could have meant my license was revoked and would have screwed me pretty badly.

Ive gotten out of the car business. Don't even dabble anymore because the cost of garage liability itself is very expensive.

It blows my mind how I went without insurance for so many years without any big issues.

Now, you've got to send a copy of your garage liability insurance before your dealers license gets approved.

I was pretty much exactly in your shoes way back when. Got a higher up on the phone from the dealer regulatory department and I grilled him pretty good about "what ifs".

Basically, there wasn't a lot of downside to getting caught operating without a license and if you were, they would just push you to become licensed or stop dealing.

When i first got my retail license, I used a location of a business my dad worked at. I put up a cheap sign I had made, took a picture of it (took it right back down) and told them that was my car lot. That worked for years without anyone ever realizing that it wasn't. I kept sending in the same picture every year.

I used a PO box for my titles. And if anything was sent to that location, my dad intercepted it for me.

Later, I just stop getting licensed and nobody knew any better. I had a lady doing my titles that didn't question me. The auctions knew me. They would ask for my stuff and I would promise it but never brought it and it never caused me any issue.

I do know that when you DO get a license, that's when dealing in "open" titles can REALLY come back to bite you. They apparently had a big problem with that so they were threatening a 3 year suspension of your dealers license for the first offense dealing with an open title.

So I never dealt with open titles when I had a license.

Later I did but never ripped anyone off and therefore never had anyone complain and I never got caught.

Its fairly easy. When you buy a car, say you're buying it for your friend or sister or whoever and ask them to leave the title open and the bill of sale too.

Most don't know any better and will do it. Then when you sell it, just put he buyers name on the title & bill of sale and you are good to go. (Also have them leave the date open)

Cant always do that. And you cant buy from auctions or dealers and do that. But most private parties don't know any better. Some do.

3. John Doe Says: best way is find a car on Craigslist for fairly cheap, slap some touch-up on it, clean it out, take some really nice pictures of it, and post it back up. for the title and dealers license, Ive sold 13 cars this past year, but uncle SAM thinks i sold 3. dont sign the title when you get it, and don't date it if you can help it.. forge a bill of sell when you sell it.. no one looks at that anyway, just copy the guys signature off the title, and send em on their way. you just jumped a title, didn't pay taxes on the car, didn't register the car, and no one is the wiser, and your up around $200 plus what you made on the car.

4. mr wabbit Says: please learn english i cant understand much of what you are saying

each state is different on DMV rules and laws pertaining to these things

you need to contact a TX state DMV office to find out this type of information really

you really dont need a dealers license you can do this without one if you are smart and dont tell ppl what you are doing, and dont get real crazy with it.