Used Cars: How Many?, selling used cars, boat gas


Question
QUESTION: Jay,
I would like to turn my hobby into a little boat gas cash for this summer.  I love to sell things and I would like to try my hand at selling used cars one at a time.  I have talked to the DMV and they have told me that there is no limit to the number of cars I sell as long as I register each one in my name.  The used car commission has suggested that to sell even one used car with the idea of profit is illegal.  So, how many can I sell?

ANSWER: As long as you do everything by the book, according to the state you are in, I would think there is no limit on what you can sell.  I have never heard of selling a car for profit is illegal, I think you need to visit with them again about that, it sounds as though there is a misunderstanding.

---------- FOLLOW-UP ----------

QUESTION: Jay, I want to make sure I am communicating like I should.  I want to sell cars one at a time without getting a dealers license.  Does that change your answer?

Answer
Okay...I did misunderstand you.  Now understand each state is different, but as long as you put each car in your name, and do everything by the books as for the tag and registration, I think you could sell as many as you want to.  That part about the Used car commission telling you that selling a used car with the idea of profit really blows my mind, but I would imagine they are just telling you that it probably is illegal to start selling cars for profit without having a license, when the truth of the matter is, how could they really prove anything, or would you ever get caught.  Now if you started selling like 10 to 15 a month or something you might draw somebodies attention but the fact of the matter is that anybody can get a used dealers license, it does not cost much money, and when you are handling a bunch of vehicles, you can do it more cost effective having a license (because then you dont have to register or tag vehicles that you get).  I guess in a nutshell if you are just going to do a few vehicles over the course of a year, just make sure you put them in your name and tag them, if you are going to start doing a sizable amount a year, get your license.  Good luck selling cars and just remember something, dont let greed over rule who you are.  Because I promise you, that if you do crooked things to make more money, it will come back to get you.  So many people in this business do things that literally scare me to be on the road with cars they have sold, they ultimately go out of business and ruin their reputation for life.  Do things the right way, and over time, you will see the rewards.  And I cant stress enough the importance of the last few sentences preceding this one.