I don't wan to get a dealers license...

[gijoe985]

Hey all,

I'm venting a little, but also seeing if anyone has suggestions. In Washington state, you are supposed to get a dealers license if you sell more than 4 cars in a year. I'm a shop teacher who got cut last year, I'm doing some subbing, but also working on friends cars and flipping a few. My problem is that I can foresee me going over that 4 car limit next year if I focus more on cars than subbing.

Now, getting a dealer license has some ups, but I am finding more downs. I can handle the paperwork and the $750 for the license. The thing that is getting me is that I'd have to a commercially zoned location, with a business sign, business phone, that operates, AT MINIMUM, 10am-4pm five days a week...

The way I look at this, they're basically making it so nobody can just sell a car a month at their leisure. You either needs to be a used car dealer, or you can only sell 4.

Here is my problem, I'm typically a very straight shooter, I'm not trying to scam people or the government (even though they don't seem to mind scamming me...) and I want to be legit. But I can't justify opening a full time used car business, nor can I justify not making the money I need to make to provide for my family. Most of the cars I sell are just given to me by people, or traded for my labor, and I just sell them at reasonable prices to make extra cash. Maybe I should sell 4 in my name, 4 in my wife's, my dad, brother, mother, uncle bob... Realistically I could probably get away with just using my name and my wife's as long as Uncle Sam doesn't come after me for that... I don't really see me selling more than 8. But I feel that 4 would be too little.

Any thoughts?

 

[tunethis]

Here in Florida it's only 3 you can sell before having to get a dealers license. It costs too much money to get a business location, insurance, etc. just to sell a few cars leisurely. Flipping cars is a good way to make extra cash and it sucks that you have to do all this just to do so. It must be some easier (cheaper) way to do this when you don't know anyone with a business. When I first thought of doing this years ago, I was thinking about maybe working out a deal with a local gas station or a shop. Giving them a percentage of my profit for using their location. I was young at the time and didn't get to that point and gave up on the whole idea. I would also like to hear some suggestions from others.

 

[cs82685]

Don't register them. When you are handed a title from someone else, don't sign it. Sure it's slightly risky if you want to let people test drive the cars, but if they're never put in your name and you don't have to drive them around, then you never owned it and therefore never sold it. If you can keep the people who are giving you the cars from dating the title and / or righting the sales price you'll have no issues. Then when you're ready to flip it write in the sales price and date. (FYI, the original owner may be asked to pay sales tax on the amount that's then written on the title so try to work mostly in cash and keep the amount low or offer to pay the tax)

 

[Lofty]

Don't register them. When you are handed a title from someone else, don't sign it. Sure it's slightly risky if you want to let people test drive the cars, but if they're never put in your name and you don't have to drive them around, then you never owned it and therefore never sold it. If you can keep the people who are giving you the cars from dating the title and / or righting the sales price you'll have no issues. Then when you're ready to flip it write in the sales price and date. (FYI, the original owner may be asked to pay sales tax on the amount that's then written on the title so try to work mostly in cash and keep the amount low or offer to pay the tax)

This guy tells the truth. Just try not to make it obvious that you aren't titling them in your name. If word goes out, it's called tax evasion. I mean, I've never EVER not titled a car in my name. That would be illegal...
Naw what im sayinnn?

 

[gijoe985]

I've sold cars that I never registered before... Only a few times though. If they write a date and price on the title, you need a bill of sale, then you just write a second one for the new price and date. The DMV takes both and it is ok. I doubt they keep your name if you were the middle man, but maybe.

When it all boils down, I am a firm believer in following the heart of the law, but maybe not the letter of the law. I don't want to evade taxes that I rightfully owe, but I must admit I feel that paying sales tax on a car that has had sales tax paid on it 4 times before wrong. I also think limiting a person like me to 4 a year is pretty cheap.

 

[snipingkills]

Why not talk to a small used car dealer? Operate under his license and slip him $50 for every car that you sell under his license. Selling a car a month that way would be cheaper than a license on its own.