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selling cars without a dealer license

Discussion in 'The Hokey Ass Message Board' started by sixbangr, Jan 14, 2011.

  1. sixbangr
    Joined: Jul 17, 2010
    Posts: 212


    I was set to go pick up a car on Sunday from a guy in Wyoming. He is just a car guy trying to get rid of some toys so he can move. He had a visit from an Investigator from The Dept of Trans. Said he sold 3 cars last month and he is done for a year. Two of the cars were sold to a junk dealer. Any way around this?
    djr041060 likes this.
  2. I know here is Alabama your allowed 5 cars per year before you have to get a license. I know the license here was alittle pricey..

    I guess he could give it to a family member. They would have to pay the gift tax and they sell it to you.
  3. thunderbirdesq
    Joined: Feb 15, 2006
    Posts: 7,073


    Sounds like horseshit to me!
  4. sgnova72
    Joined: Nov 22, 2010
    Posts: 130


    Here in Massachusetts you can sell 5 a year before you need a license.
    djr041060 likes this.

  5. 40FORDPU
    Joined: Mar 15, 2009
    Posts: 3,506

    from Yelm, Wa
    1. Northwest HAMBers

    I believe it is five in Washington also. I was told the license is expensive, and that you must have a legitimate place of business-street business sign, exposure, properly zoned, etc. not a housing development, or residential area.
  6. sixbangr
    Joined: Jul 17, 2010
    Posts: 212


    I called Wyoming a few minutes ago. You can only sell 2 per year. He only has a few months be for he has to move. He has several cars that need to go . He is not selling at a profit.
    Clay Belt likes this.
  7. George
    Joined: Jan 1, 2005
    Posts: 7,577


    Buy a trailer from him that just happens to have a car parked on it....
  8. 49ratfink
    Joined: Feb 8, 2004
    Posts: 18,480

    from California

    I bet there are plenty of people these days selling off thier car collections to keep the house. there has to be some sort of appeals process so a guy can sell his own cars that he has owned for several years.
    junk yard kid likes this.
  9. stevechaos13
    Joined: Sep 11, 2008
    Posts: 419


    Looks like there isn't a legal way to get around it.
    Having him gift it to someone else and then them sell it to you is probably the only option, unless you want to buy it and not file on it until next year.
    Clay Belt likes this.
  10. sgnova72
    Joined: Nov 22, 2010
    Posts: 130


    Does he have any close imediate family, ie kids, parents. They may have a gift form at rmv. He could transfer to them and then they sell remaining cars. I have done that a couple times here in ma, though you do have to pay for title, but no sales tax.
    junk yard kid and pitman like this.
  11. Title in your name? If not have the wife or your children sell the car. There's more than one way to skin a cat. Be creative!
    Clay Belt and LOU WELLS like this.
  12. shainerman
    Joined: Apr 18, 2009
    Posts: 820


    Yeah! I sell at least 5-6 cars a year. I just never register them, just title them. Who knows about other states. Ours is 8 cars in a year in Missouri. I just try to keep my name out of everything legally associated, haha. Fly under the radar or pay the price.
  13. Kingcrow
    Joined: May 8, 2009
    Posts: 343


    Yeah I think 2 cars a year is BS, here in TX it is 5 per year. But there is always away to get around it ;)
  14. loudpedal
    Joined: Mar 23, 2004
    Posts: 2,200

    from SLC Utah

    I wish the government would leave us car people alone.
  15. voodoo1
    Joined: Jun 27, 2007
    Posts: 452


    Yes be creative. Maybe he just happened to start "storing" them somewhere else!
  16. 66L-79
    Joined: Mar 4, 2008
    Posts: 348


    If I buy a car or truck to sale I never put them in my name just have the previous owner to sign the title. In S.C. if you have dealer lisence you have to sale 10 cars per dealer tag you have.
  17. That was what I was doing in NY some years back, but I hit the threshold one year (maybe 3 or 4...) and got a letter from DMV that I should register as a dealer under their "itinerate vehicle collector" guidelines. I almost did it, since it was so easy to do.

    All I had to do was register, keep a file drawer for my paperwork and hang a sign outside my garage. At the time it was a small sign, like "XYZ Auto Sales" and that would keep them happy.

    It was funny, at the time I did have a NY State dealer plate that I found by the side of the road. I used that for years until they changed the plate colors.

    Clay Belt likes this.
    Joined: Jun 3, 2005
    Posts: 9,229


    The whole "car limit" thing is BULLSHIT!! As long as that car is in your name TAXES AND REGISTRATIONS PAID, no form of gov't can stop you from selling them. Do you need a license to sell stamps? Beanie Babies? Coins? No. It's an attempt by local authorities to legally extort funds from the general public. It takes a bit of courage to take them on but it's true. We lived in Allen PK, MI back in my youth. Dad and I bought and sold cars all the time. Some jealous neighbor tried to turn us in for our hobby. They lost. If you own them outright, all yours, no liens, do as you please. Dealers are required to collect sales tax. That's it. Dealers can buy w/out paying sales tax. That's also what they're for. Private collectors are not a buisness. They're enthusiasts who like their cars and can swap em around at their will.
    weps likes this.
  19. PhilJohnson
    Joined: Oct 13, 2009
    Posts: 906


    In Wisconsin it is 5 cars. If I am planning on flipping a car I usually don't title it in my name. I know I've come pretty close to the 5 car limit in a year. If the limit was 2 cars I'd be in trouble every year :eek: Folks in Wyoming must not sell their cars that often :rolleyes:
    mike in tucson and weps like this.
  20. Pir8Darryl
    Joined: Jan 9, 2008
    Posts: 2,488


    Damn beaurocrats :mad:
    So sick of gooberment up our asses... How long untill you have to have a license to f'ing breath in more than your alloted share of oxygen?
    Clay Belt likes this.
  21. CharlieLed
    Joined: Feb 21, 2003
    Posts: 2,463


    If you go to Wyoming and hand this guy cash and take the car back to KS...who's going to stop you? If you aren't registering the vehicle in WY then WY should butt out.
    twenty gallons and weps like this.
  22. rlsteel
    Joined: Apr 10, 2005
    Posts: 507


    This is not a new law been like this for a number of years .I remember a buddy getting a letter from missouri 30 years ago.RLS
  23. Squablow
    Joined: Apr 26, 2005
    Posts: 16,407


    It would be nice if there was an exemption for old cars, a lot of collectors sell off parts of their collection and get different stuff all the time, I know I do it, I'm not trying to be a dealer, it's just kinda part of the fun of the hobby to get new and different cars.

    At the same time though, I don't want my neighbors having a pile of Taurus's parked on his lawn for sale all year round, so I can see where that would be a problem.

    The laws are in place to keep shady dealers from pawning off a bunch of junk and then leaving, moving around a lot without any accountability, which I can see where that would be a problem, but the old car hobby is totally separate from that kind of stuff, and it'd be nice if the state would recognize that.
  24. Gerry Moe
    Joined: Jan 29, 2006
    Posts: 498

    Gerry Moe

    So if you get the dealers license, do you get to go to the dealers window at the dmv, vin verification rights, buy cars at state auctions, local auctions, vehicle inspection? Could be some benefits, don't know what until ya research your state rules.
    Clay Belt likes this.
  25. bobwop
    Joined: Jan 13, 2008
    Posts: 6,099



    There are some benefits, but there is huge responsibility.

    There are three main reasons why most States limit the number of cars you can sell:

    1. They want to be certain you and your neighbors are able to get along. A dealer must meet zoning restrictions and have a suitable facility before a license is issued.

    2. Consumer Protection...a dealer must be bonded and insured. All vehicles sold must be inspected and all defects or deficiencies must be disclosed. All title brands must be disclosed. Any changes or alterations from OEM must be disclosed. Should there be an issue and the dealer found to have falsified information of intentionally deceived a customer, the dealer is liable. Should the dealer not be able to make ammends, the bond or insurance is drawn upon.

    3. Funds...a dealer is responsible for collection of sales tax, registration, title and lien filing fees. The dealer is responsible to collect and submit to the State all fees and do so within a timely fashion.

    I don't make the laws, I just try real hard to obey them. Squack all you wish on here about your displeasure for the law, but you are just preaching to the choir. If you feel strongly about your beliefs and feel you have a good arguement, contact those that make the laws, your legislators.
    lothiandon1940 likes this.
  26. bobby_Socks
    Joined: Apr 12, 2006
    Posts: 938

    from ǑǃƕǑ

    I would have him date the title to last year since we are not that far into the new year !!!!

    Clay Belt likes this.
  27. sixbangr
    Joined: Jul 17, 2010
    Posts: 212


    It is not done by calender year. If you sell the 1st car in June, it goes 'till next June. I did ask when i called the people at the WY dmv. I just emailed him about giving the car to his wife.Then she can sell it to me.
    Tin Lizzie likes this.
  28. Edelbroke
    Joined: Dec 12, 2008
    Posts: 770


    Not much benifit to buying cars at auction. No real steals there.
    Better deals can be had from private partys.
    Not profitable to maintain a dealers liscence if nobody's buying cars.
    As far as "inspections" go. There's alot of dealers that just check the "not ok" box the disclosure stickers to sell junk. So all having a dealers liscence does for you is it tells the buyer this guy paid the state for a liscence and everything on the window sticker is correct.
  29. sixbangr
    Joined: Jul 17, 2010
    Posts: 212


    I guess we could date all the papers as 2009. So I didn't re do the title for a year.Should not be a big deal, the car was not running any way until a few days ago. Sounds good to me.
  30. brad chevy
    Joined: Nov 22, 2009
    Posts: 2,627

    brad chevy

    In Fla you are allowed 6 cars before having to have a license but easy to get around,sell for cash only and write Gift in the slot on the title for amount.And take it to a different DMV office to have it changed over to your name.
    Fedcospeed and Turbo26T like this.

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