buying selling used cars?

[kenversusryu]

I plan to go to an auction and buy a car and sell it for a quick profit but I was wondering if I needed some kind of dealer license if i wanted to buy and sell more cars down the line. I'm in cali and the dealer license is pretty complicated as far as a place of business and a business license is concerned. I just wanted to do it on the side.

Thanks.

[cmcdougle]

Yes you do. Most auctions won't let you in unless you have a license. Auction cars are crap anyway.

[kenversusryu]

so then that means i need a place of business (or at least photographs) and a business license just to sell cars? Even if it's just one or two a month? that's crap.

[Apossiblehybrid]

i think without a license you can only sell 3 a year under your name. but if you wanna sell more you have to get a license.

[kenversusryu]

Does anyone know if there is a different dealer license that doesn't require a business license or a business?

[S14DB]

IMHO I would incorporate and get a biz license for the corporation. Yes, it's some money. But, it will save your ass in the long run.

[unwed_transient]

i think without a license you can only sell 3 a year under your name. but if you wanna sell more you have to get a license.

6 per year.


auction cars are usually not going to turn the profit you're looking for like mcdougle said.

[topsecretgold]

it just doesnt really make sense to me that there is a limit on buying and selling personal cars. if you work to find the deal, and sell to make some money, it should be ok because you earned it. right??? im guessing it mainly has to do with the government wanting "their share" of taxes on your profits.

[cdlong]

if you're doing it to make money, it's a buisness. it doesn't matter if you own them personally or through a company. if the sole reason for owning the car is to resell it, it's a buisness.

now if you had 6 cars and you had to sell them all for whatever reason, that's a different story, albeit, an unlikely one.

[unwed_transient]

it just doesnt really make sense to me that there is a limit on buying and selling personal cars. if you work to find the deal, and sell to make some money, it should be ok because you earned it. right??? im guessing it mainly has to do with the government wanting "their share" of taxes on your profits.
correct. more tax revenue for uncle sam.


to the op: if you're in the la area, the trick is to buy up a honda dirt cheap in the sf valley and try to pawn it off on somebody in the AV. they always need cars up there, their usually clueless as to worth and they usually have some decent cash lying around.

just my past experience.

[PBucch]

The auctions you want to be at will need a dealership liscense for sure, and the thing that kills it is that they dont liscense people, at least in CT, they liscense a location. shits totally bunk.

Wholesale auctions are the shit though, great deals, but the shit that you want like hondas/toyotas/nissans go for hella dough, all kinds of fools in there driving up the price, paying $2k for 92-95 civics with body damage and shit.

[StaticX27]

Just so you know the whole process:
There are two types of dealer licenses, wholesale and retail licenses, most likely you want a wholesale license (significantly cheaper and less stringent).
1) Go take a required class on your dealer's license, then go down to the DMV and take your test. For a wholesale license, that authorizes you to sell 25 or less cars per year, and requires you to lease a $10000 bond yearly (works out to be around $140-150ish if I remember right). This does not authorize you to sell motorcycles through use of your dealer license!

Unfortunately, even passing the test, taking the class and paying your money, you don't qualify for a dealer's license yet. You need a place of business. If you're lucky and your city will allow it, you can use your garage as a place of business. You will need to schedule a zoning agent to come out and inspect your "place of business." Then you need to file your business, have a bank account, and a seller's permit.

All in all, you will spend around $500 your first year in miscellaneous fees (plus rent of the building if you have to), then around $250 every year there after. Dealer plates cost you $21 per year per plate you have. However, the cool thing is that dealer plates exempt you from both smog and safety requirements, are legal to drive on the road.

Meaning you can technically slap these on a full blown race car and drive it around on the streets. However, that's a good way to get your license revoked. However, it will allow you to drive that SR20 swapped S14 around legally, and technically, the police can't do anything about it. Just remember, the state can revoke your license for whatever reason they want. Its a privledge, not a right ;)

[Farzam]

I do it.

It's not worth it.

I kinda stopped.

I swear that i'm keeping a car...and then 2 weeks later i'll change my mind.

All the annoying shitheads call and tell you they're coming and they waste your time and BALHASHDAIFA. Fuck it.

['90RPS13]

^~~~Haha, that would be me. I would fall in love with a car at the auction. Buy It. 2 Weeks later Sell it cause I got bored with it. I would be worse then Gleb's 240 Buildup Thread if I had a Wholesale License.

[Farzam]

Yeah...i've never really bought a bad car from an auction.

They always have something I didn't know like a weird clunk going into 2 to 3 (in an auto) butwhatever. Nothing I can't fix.