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Old 11-06-2014, 03:06 PM
 
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I know some states say you can sell up to 3 cars a year and are not require to have a dealers license, but in GA, they claim you cant sell any cars unless you have a dealer license.

Is it alot that goes into getting a license?
Is it worth it to try to get a dealer license just to try to sell 4-8 cars per year?
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Old 11-06-2014, 03:12 PM
 
Location: Eastern Washington
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How much does the license cost? How much profit do you think you can make per car?

You need to check on what the actual # of cars you can sell without a dealer's license - at least when I lived in GA, you could sell your own car direct to someone else without a license. Typically the issue comes up if you are selling several cars per year.

Do you have a good source of cars to sell? Are you a mechanic/detailer who can take in a car with limited needs, clean it up, tune it up, and sell for a profit? How are you at sales?

What is your day job? Would you be better off applying the extra effort to it, maybe get promoted?

Are you trying to actually make some money, have a hobby that pays for itself, or what?

If you are actually in Atlanta proper, you would probably need a business license and probably some sort of specific insurance to be legit.

Maybe you should get a job selling or prepping cars at a small lot for a while, to learn the ropes of the biz, and to see if you really like it?
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Old 11-06-2014, 03:39 PM
 
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Well, assuming you get a license, are you also required to have a separate place of business? I do know that some states require you have a place to sell cars that is not your home, for example, so that can drive up your expenses a bit!

If you want access to auctions and have a business location already, it may make sense. Otherwise, I'd just flip cars as a hobby. At five cars a year, who is really going to be looking at you?

I know some people who will purchase cars, apply the glamor changes (fresh polish and wax), and sell for a profit. It helps that they can fix minor mechanical issues themselves, and have time to sell.
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Old 11-06-2014, 04:01 PM
 
5,445 posts, read 4,393,490 times
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Quote:
Originally Posted by SAAN View Post
I know some states say you can sell up to 3 cars a year and are not require to have a dealers license, but in GA, they claim you cant sell any cars unless you have a dealer license.

Is it alot that goes into getting a license?
Is it worth it to try to get a dealer license just to try to sell 4-8 cars per year?
That doesn't make any sense. So, everyone selling a car on craigslist has to have a dealers license? What if I am I buying a new car and trading in my old car? I am basically selling my old car to the dealership? Do I need a license for that?

Here is some info I found and it explains the thought behind what you are thinking.

Basically, you are allowed up to 5 per calendar year. If you plan on selling more than 5, you need to be licensed. It seems like people interpret the law that you can sell 5 and then on your 6th one you need a license. This is the wrong interpretation. The link below had some good

How to Sell Vehicles at Auction - Georgia Auctioneers Association :: Georgia Auctioneers Association

Keep it under 5 and you should be good to go.

Here is the law I believe. Read paragraph 17A.

43-47-2 - Definitions :: 2010 Georgia Code :: US Codes and Statutes :: US Law :: Justia
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Old 11-07-2014, 09:50 AM
 
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Dealer Licensing in Georgia

Georgia Auto Dealer Licensing Requirements at DMV.org: The DMV Made Simple
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Old 11-07-2014, 10:29 AM
 
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Given that you must have a dealership in a brick and mortar business zoned location, business insurance, and all the associated overhead to comply with GA used car dealer license requirements ...

it's unlikely that you can make enough money on so few cars per year to make it worthwhile.

better to stay within the maximum limits of private car transactions per year and make those few bucks that you can, unless you really want to have to work at the business to do a lot more volume.
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Old 11-07-2014, 04:32 PM
 
4,039 posts, read 3,698,225 times
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Quote:
Originally Posted by sunsprit View Post
Given that you must have a dealership in a brick and mortar business zoned location, business insurance, and all the associated overhead to comply with GA used car dealer license requirements ...

it's unlikely that you can make enough money on so few cars per year to make it worthwhile.

better to stay within the maximum limits of private car transactions per year and make those few bucks that you can, unless you really want to have to work at the business to do a lot more volume.
Yeah for all that is required, unless your selling 2-3 cars a month minimum, its not worth the hassle.
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Old 11-07-2014, 04:43 PM
 
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No. Sell things on Ebay. That's way too expensive
of a venture to only be selling 5 cars a year.
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Old 11-07-2014, 07:34 PM
 
Location: Eastern Washington
13,388 posts, read 42,701,155 times
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Apparently you can, though, sell up to 5 cars a year without becoming a dealer. If this is going to be a part-time job/hobby, that's just a little less than one every 2 months.

You never said what your business model idea is. If you intend to buy a car with limited needs from an individual, polish it up, tune it up, and sell it for a small profit, doing 5 a year is probably all you want to do anyway.

You probably don't want to get into direct competition with small professional car lots, buying at auctions - hard for you as an amateur to beat the pros at their own game.
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Old 11-07-2014, 09:13 PM
 
Location: Ft. Myers
15,566 posts, read 9,642,463 times
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Every State is different, but here in Fl my Son has a dealers license and it cost him about $10 grand when all was said and done. There were the classes, license, inspections of his premises, equipment to do temp plates, etc, etc. He hasn't broken even yet, but is doing it as a long term investment.

It isn't as easy as it sounds.

Don
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