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I want to flip cars for profit. I know if CA you can do 3-5 (not sure the exact amount) in a calender year. Can I do that from home without having to get an office, lot, and all that kind of stuff?
Has anybody went through the process of obtaining a dealer license?
My advice to you would be to continue curbing cars. AFAIK for a retail lic. you would need a place of business, bond, sales tax account etc. Expensive and the state does not just hand them out. Site visits are the rule by inspectors etc. Wholesale only can be out of your house though there are some stips regarding egress and phone lines.
So I couldn't get a license just so I could buy & sell used cars?
Because if I just buy 1 car at a time it would not make any sense for me to have an office, a lot etc.
Also have the laws changed on how you would acquire a dealer's license? Because a friend of mine back in the early 2000's had his dealer's license and as far as I know he did not have an office, lot, or a different business address.
My friend is a dealer here in TX and he needed all of the above aforementioned items--lot, land line, bond, et al. That is the idea of this racket...to keep just any schmoe from peddling cars for the heck of it.
You get all that together, wait a few months for your license to come in the mail and you are set. Then you get the real fun of trying to make ends meet.
Welcome to the big time. You pay inventory tax, sales tax, property tax, tax on shop, tax on tools used to fix vehicles, probably a tax on the other taxes just because they can tax you and laugh at you while doing it, younameit.
My friend makes his money as a landlord, not as a a dealer, btw...the dealer thing must be a demented hobby.
As Alfred said, it's a business that is licensed and administrated by state agencies. There is no EASY way in. The rules are to protect consumers and the dealers of course. Joe Six-Pack selling cars to the public can cause a lot of problems so..... the business is regulated like many others selling high cost items.
KrazyKarGuy
A dealer in Colorado
People flip cars on craigslist all the time. No license required. Just buy the car and then resell. It's that easy. No need to over complicate things if you are only doing one car at a time. Now if you need the license to go to some of the dealer auctions then that's a different story.
Although there may be some differences from State to State, there are probably some similarities too. For example, here in Florida you do not need a license if you sell under a certain amount of cars a year, that is probably true elsewhere too.
We just got our Florida dealers license and it took about 6 months and about $ 3,000.00 to do. It entails applying with the State, having an initial inspection of your business location, erecting a sign that is readable from 50 yards away, you need a certain number of roped off parking spots, and you have to attend classes and pass the test. Then they come back and submit your final paperwork to see if it is in order or if you need to change anything. We also had to set up an LLC, and separate bank accounts and phone service.
The main advantage is that we can now go to dealer only auctions and buy there.
Don
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