Flipping Cars for Profit: Your How-to Guide Included

Short Answer: Flipping cars for profit involves deciding what type of car to flip, finding cars to flip, and finding buyers. When selling cars, it is important to follow all of your state’s vehicle laws; you will need to keep proper documentation, conduct legal vehicle transfers, and take care not to exceed your state’s limit for non-dealer vehicle sales. In most states, you can sell four to six vehicles per year without a dealership license, but some will allow you to sell up to twelve.

Find out more about how to make money flipping cars below. We cover all aspects of flipping cars for profit including how do do it, how many cars you can sell in a year, how to get a dealer’s license without a car lot, and more.

How to Flip a Car

Step 1: Deciding What Kind of Car to Flip

You don’t need to have a wealth of mechanical knowledge to flip a car, but it certainly is helpful. If you are a decent negotiator, you should be able to make a profit on your cars — and just like all sales, the more you do it, the better you’ll get. It’s said that when flipping cars for profit, the money is made on the purchase, not the sale, so buy low.

You have a couple of options to consider when flipping cars for money. If you are a good mechanic with access to tools, you may want to consider operating in a niche market of cars. For example, select a make, such as BMW. Once BMWs start to get old, the maintenance can be expensive, pushing people to sell their car instead of taking on the cost of repairs. If you know your way around an engine, it could be quite profitable for you to operate in this niche.

If you are not so mechanically inclined, you still have options. Many consumers buy small commuter cars to use until they can afford to upgrade. When they decide to upgrade, the car is still in fine condition, but they want to change vehicles. Depending on what area you’re in, it could be profitable for you to buy these commuters and sell them at a profit.

Step 2: Find a Car

Once you decide the type of car you are aiming to buy, you need to find your first car. Fortunately, in this age of technology, you aren’t just limited to the “Classifieds” section of the newspaper. Craigslist and eBay are great options to check out what kinds of deals you can get for a car.

Once you have your car, you need to decide whether you want to do anything to increase the value of the car. If you got a great deal on a vehicle that someone had to dump quickly because of a move or another reason, you may not even need to get the oil changed before you resell it at a profit. If you are mechanically inclined, you may have great luck purchasing cars with some issues that you can fix on the cheap, and reselling for more than the purchase price plus the costs of your parts and labor.

Suggested article: Can you drive without plates if you just bought the car?

Step 3: Find a Buyer

Once you are ready to sell the car, you have a few options of how you want to unload it.

  • You can list the car on sites such as AutoTrader, CarGurus, or eBay. These sites will advertise your car and walk you through all the necessary paperwork for selling the car, as well as offer fraud protection, all for some kind of a fee. These sites are an easy option, but the fees will usually outweigh the benefits.
  • The best options to make the most money are to list the car on sites like Craigslist or your social media outlets, take advantage of word-of-mouth advertising, or simply put a “For Sale” sign in the window and drive/park the car in places where buyers may be. With these options, you will be entirely responsible for filing all involved paperwork, but will not pay any additional fees.

You Have a Buyer, Now What: The Paperwork

The paperwork processes are different for each state. Most states just require a bill of sale (or a vehicle transfer form), a release of liability (or a notice of transfer), and an official title transfer.

States have slightly varied requirements on what must be included in a bill of sale. Usually you can write the bill of sale yourself, but there are online templates available to help you out. Usually the bill of sale needs to include the vehicle’s VIN number, vehicle description, date of transaction, amount paid, and buyer and seller name and address. This will need to be signed by both the buyer and the seller. Check the DMV website in your state before conducting the transaction so you don’t miss any important information.

The release of liability is there to protect you if anything happens to the car between the point of sale/title transfer and the time that the buyer finishes their registration of the vehicle. It usually includes all of the same information as the bill of sale, plus the odometer reading at the point of sale. Again, each state has its own requirements. Your state’s DMV website will have the answers.

The title transfer is the easiest part. Usually there is a title assignment section on the back of your current title. You will sign as the seller and have the buyer sign as the buyer. It is recommended you accompany the buyer to the local county tax office to ensure that your buyer has officially filed for a new title.

How Much Money Can You Make Flipping Cars?

You can make anywhere from a few hundred dollars to thousands per car, depending on your skill level with cars and your luck with finding low buys and high sells. If you are going to make less than $700 on the car, then it may not be worth your time.

If you’re a strong negotiator but don’t fix up the cars at all, you can negotiate the buying price of the car down and sell it for a $700 profit. If you live in a state like Indiana, you can do this once a month before being considered a dealer, giving you $8,400 extra dollars in your pocket annually, before taxes. (You will need to list this as extra income on your taxes.) Once you have a few sales under your belt and gain experience as a buyer and negotiator, you could start making even more per sale.

You can make a living flipping vehicles, but depending on what state you live in, you may have to get a dealer’s license to earn a sustainable living. Once you gain experience with flipping cars, you may be able to flip up to four or five cars per week. At this point, you would need your dealer’s license. With a dealer’s license you could, for example, make $700 per car, and average four cars per week. That makes $8,400 per month if you took one week off per month. This gives you over $100,000 per year in income, before taxes, while still taking 12 weeks off per year. You could make almost $150,000 per year if you only took two weeks off.

How Many Cars Can You Sell in a Year?

Some websites will tell you that flipping cars, in and of itself, is illegal. This isn’t true if you follow your state’s rules regarding flipping cars for profit. Many states will allow you to sell a handful of cars per year without a dealer’s license. But, it’s important to be aware of state laws about car dealers and title registration, which both have important implications for your ability to flip cars for profit. Here’s the detailed answer to, “How many cars can you sell in a year?”

Dealer License Requirements

The number of cars you can legally sell without a license per year depends on how your state defines “dealer.” Typically, a dealer is defined by a minimum number of car sales per year. Indiana and Vermont are the most lax states, allowing you to sell up to 12 cars in a calendar year without a dealer’s license. Several states — including California, Kentucky, Minnesota, and Mississippi — consider you an automotive dealer as soon as you sell one car, used or new, if the sole purpose was to make a profit. Most states allow you to sell around five cars per year before being classified as a dealer (see for example, Wisconsin (five cars) and Washington (four cars)).

Regardless of the basic limit, you should check with your local DMV to make sure you aren’t violating dealer licensing laws. Many states define the limits differently. For example, a five car limit could be phrased such that “the sale of five cars is evidence of operating a dealership,” or, a state could define “dealer” as “one who sells more than five cars in any 12-month period.” It’s important to find out the nuances and make sure you’re within the law.

Title Hopping

Title hopping refers to buying and reselling a car without ever registering it in your name. Most states give a grace period for how long you have to register your car once you buy it. This can range anywhere from two business days (Wisconsin) up to 60 days. If your state has a longer grace period for registration, you could technically purchase a car and resell it within the grace period without ever registering it under your name. You would still owe taxes on any proceeds from the sale of the car, and some state laws will consider the practice of title hopping to be fraud and evasion of dealership laws.

Another type of title hopping is known as an “open title sale” and is typically illegal and considered fraud. An open title sale is where the seller fills out the title, usually leaving the date, buyer information, and sometimes the price blank. The buyer can then sell the car to a third party at any time and retain the profit. This is not recommended, especially for the seller, who is legally responsible for the car until the title has been transferred to another person or entity.

What could go wrong with an open title sale? Let’s say you sell your car in an open title arrangement. The buyer of your car (who is not on your title) has a wreck where he/she is injured, or even injures other people. Since you are still technically the title holder, you are completely liable. Also, since the car is still in your name, you will be the one to receive registration renewals, traffic violations, and parking tickets. Many things could go wrong in between the time that you hand the keys and title over to the first buyer and the time that your buyer sells it to someone else.

Limits by State

There are limits on how many cars you can sell without a dealership license, limits on selling cars for someone else, and limits on why you’re selling a car. Most states put a limit on how many you can sell per 12-month period (that’s not the same as a calendar year), and many restrict your intent — you can’t buy and sell with the intent to make profit. That means if you’re just selling your own old car or the occasional fixer upper, it’s fine, but if you’re actively flipping cars and buying with the intent only to re-sell, it’s not fine.

Here is what you can do without a dealership license in each state:

  • Alabama: Anyone who sells used or new vehicles must have a dealership license.
  • Alaska: You can sell up to four vehicles per 12-month period.
  • Arizona: You can sell or trade up to six used cars in a 12-month period. You cannot sell or trade new cars, and you also can’t be a car broker, manufacturer, distributor, or other related occupations.
  • Arkansas: You can sell or attempt to sell up to five vehicles per 12-month period.
  • California: You cannot sell any cars without a dealership license.
  • Colorado: You can sell or lease two vehicles per calendar year.
  • Connecticut: You cannot engage in the business of selling or repairing vehicles.
  • Delaware: You can sell up to four vehicles per 12-month period.
  • Florida: You can sell and display up to two vehicles in a 12-month period.
  • Georgia: You can sell your own personal vehicle. You cannot sell a car for a profit.
  • Hawaii: You can sell up to two vehicles per calendar year.
  • Idaho: You can exchange or sell up to four vehicles per calendar year.
  • Illinois: You can sell up to four vehicles in one calendar year.
  • Indiana: You can sell up to 11 vehicles in a 12-month period.
  • Iowa: You can sell up to six vehicles in a 12-month period. You cannot buy and sell cars for the sole purpose of making a profit.
  • Kansas: You can sell up to four vehicles in a calendar year.
  • Kentucky: There is no set limit, but you can’t buy and sell a vehicle with the sole intent of making a profit. The license requirement is not excused when vehicles are registered (and taxes paid) by the person who buys and sells them.
  • Louisiana: You can sell four vehicles in a 12-month period.
  • Maine: You can sell four vehicles in a 12-month period.
  • Maryland: You can sell two vehicles in a 12-month period.
  • Massachusetts: You can sell five cars in a calendar year.
  • Michigan: You can sell four cars in a 12-month period.
  • Minnesota: You can sell up to five cars per 12-month period. You can’t be a broker, do consignment sales, or sell used car parts. You can’t buy and sell the car solely with the intent to make a profit.
  • Mississippi: You cannot buy and sell cars with the intent to make a profit.
  • Missouri: You can sell five cars per calendar year.
  • Montana: You can sell your own car to a third party. You cannot sell any cars that are not registered in your name.
  • Nebraska: You can sell up to seven vehicles in a 12-month period. You cannot consistently (meaning regularly over a period of 30 days) sell or exchange vehicles. (So, your up to seven should be spread out — don’t sell them all in a month or two.)
  • Nevada: You can sell up to three personally owned vehicles per calendar year.
  • New Hampshire: You can sell four vehicles per 12-month period.
  • New Jersey: You can sell three cars per calendar year.
  • New Mexico: You can buy, sell, or exchange up to four cars per year.
  • New York: You can sell five cars in a calendar year. You cannot display more than two vehicles in a single month (i.e., you can’t have those five cars out on display in your driveway or lawn at the same time).
  • North Carolina: You can sell four cars in a 12-month period.
  • North Dakota: You can occasionally sell a car you own to a third-party buyer. You cannot be in the business of selling cars.
  • Ohio: You can sell five of your own vehicles in a 12-month period.
  • Oklahoma: You can sell up to six cars per year.
  • Oregon: You can sell, display, offer for sale, trade, or exchange up to five cars per calendar year.
  • Pennsylvania: You can sell four vehicles in a calendar year.
  • Rhode Island: You can sell four vehicles in a calendar year.
  • South Carolina: You can sell five vehicles in a calendar year.
  • South Dakota: You can sell up to four vehicles in a 12-month period. You cannot be wholly or partly into the business of selling vehicles.
  • Tennessee: You can sell five vehicles in a calendar year.
  • Texas: You can sell up to four cars you own per calendar year.
  • Utah: You can sell your privately owned car to a third-party buyer. You cannot be in the business of selling, exchanging, trading, manufacturing, or distributing vehicles.
  • Vermont: You can sell 11 cars in a year.
  • Virginia: You can sell four vehicles in a 12-month period.
  • Washington: You can sell four vehicles that are registered to you per 12-month period; you cannot sell vehicles that aren’t registered to you. You can’t buy and sell vehicles for a profit.
  • West Virginia: You cannot engage in the business of sell or exchanging cars.
  • Wisconsin: You can sell up to five vehicles per 12-month period as long as they’re your own and you didn’t buy them for the purpose of selling them.
  • Wyoming: You can sell up to two vehicles in a 12-month period.

Beyond these dealership license requirements, many states have specific rules for how to transfer a title and have specific time limits for notifying the state of the sale or registering the car. You should learn about these before you try to flip a car. Many states also have insurance requirements.

How to Get a Dealer’s License

Because every state has different laws regarding dealer’s licenses, you need to find your particular state’s license application to know the exact requirements. Most states avoid the verbiage “car lot,” and instead require that you have an “established place of business” in order to get a dealership license.

What Is an “Established Place of Business”?

Each state may vary in the details of what exactly an “established place of business” is, but the overarching theme similar. You usually need to have a separate business address that is not your residential, permanent address. This location will need its own registered phone number as well as have signs for your business. Some states (like Colorado) require a certain number of bathrooms and/or parking spaces, and may require that your address only be used for dealer business.

Dealer’s License Requirements Example

Each individual state’s DMV website has applications as well as rules regarding your dealer’s license, and every state has its own level of difficulty that goes along with acquiring your dealer’s license. You may want to find someone who has already done this locally and ask how the experience was.

For example, Georgia requires you to get a Used Motor Vehicles Dealer’s License. To do this, you need to:

  • Fill out an application
  • Have an “established place of business” (with pictures to prove you have met this requirement; may be subject to inspection)
  • Purchase a surety bond of at least $35,000 (talk to your insurance company)
  • Procure insurance on your business
  • Attend a qualified pre-licensing seminar with a board-approved education provider
  • Submit fingerprints

In Summary

Flipping a few cars a year is doable in most states, and if you’ve got a knack for sales or mechanics, you can make decent money. If you are serious about flipping cars as your main source of income, you’ll have to get a dealership license. Requirements vary by state, but usually that means you’ll need a place of business with a separate address, phone, and other requirements.

Suggested next articles: How many cars can you legally have in your name at once? And, if you’re going to have a lot of cars around your house, consider expanding your driveway; our article details where to source cheap driveway materials like crushed concrete and asphalt millings.

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34 comments

  • You say, Each state allows you to legally sell a certain number of cars per year before the state classifies you as an automotive dealer. Once the state sees you as an automotive dealer you are required to carry a state-issued dealer’s license. By mistake I sold over what the state of WV allowed. (4) I do not want a Dealers license. I just want to fix up one here and there. In fact it has been over one year since I have sold my last one.

    The letter I got from Dealer Services was “A Cease & Desist Letter. ” I saw this definition ,, It is often times the first step to asking an individual, or a business, to stop an illegal activity. The purpose of the letter is to threaten further legal action if the behavior does not stop.

    NOW, My question is this. Does this mean I can never sell another car the rest of my life or does it mean Stop selling too many and being like a dealer. I take it to mean that for that year no other cars should be sold and then when the new year starts make sure I only sell 4 each year from now on. Stop and desist from selling too many. Sell legally.

    thanks for yoy input.

  • I cant find online where it tells me how many days I can go without registering a vehicle on the DMV site in West Virginia. But lets say it 30 days, so what you’re saying is in those 30 days I sell the car then is it legal to not get it registered?

    • Laura Bachmann says:
      First Quarter Finance logostaff

      Hi Justin,

      Yes, in those states with longer grace periods, you wouldn’t have to register the car in your own name as long as you bought and sold the car within the grace period. The person you sell the car to would still have to register the car in their name once you sell it to them, though.

      I found this, §17A-3-1, specifically on the grace period in West Virginia: “Provided, That in the event of the sale of a vehicle by a person other than a registered dealer, the person purchasing the same may, for a period of not more than ten days, operate such vehicle under the registration of its previous owner and display the registration thereof: Provided, however, That he or she shall have and display on the demand of any proper officer the consent in writing of such previous owner so to use such registration.” See West Virginia Code, Chapter 17, for more. So, it looks like you have a ten day grace period in West Virginia, probably not enough to fix up and resell the car, so you’ll have to get the car registered in your own name.

  • Ceeb Khang says:

    As a car dealer in NC, is it legal to sell and deliver cars to buyers at their residence, without them coming into the car lot? Adding to this question, can the car delivery be made out-of-state?

    • Laura Bachmann says:
      First Quarter Finance logostaff

      Hi Ceeb,

      We generally can’t respond to location specific questions because of the volume of comments we receive, but I’ll try to get you started with respect to this question. You definitely can deliver vehicles to the purchaser, and if you can meet all of the contractual requirements, you should be able to do so without the buyer coming to the dealership. For your reference, and hopefully to help you find more specific answers, here the NC car dealer’s manual. I didn’t see any specific requirement that the buyer come to the dealership to view the car.

  • Hello,

    Im curious to see if there are any legal ways for me to but and sell cars in the state of OR. without a dealers license..? For example, the open title sale. Although not recommended for the seller, is it legal for me, the buyer, to buy a vehicle and not register it, then resell it within the allotted 30 day grace period?

    Second, it states that we cannot sell a vehicle unless we can prove ownership or that the vehicle was for personal use… How can you prove personal use? If I register the vehicle, drive it to and from work for a week or two, then sell it, isn’t that personal use?

    Thanks so much for any advice, and I’d love a reference for more info on this if you have it.

    Jason

    • Rebecca Turley says:
      First Quarter Finance logostaff

      Hi Jason,

      As with many states, selling cars can get tricky when the state considers you a car dealer — and Oregon is no exception. The specifics on proving that a vehicle was used for personal or business use is quite vague, and it looks like holding onto the car and actually using it for a period of time would constitute personal use. But owning a primary car and then purchasing another car and proving that this was for your personal use could prove tricky. Here’s a brochure provided by the DMV that may help clear up the issue of a dealer certificate. If in doubt, get the dealer’s certificate — it beats the heck out of fines that could result from not having one. Good luck!

  • Here in Kentucky that State MVC website that a dealer license is required for anyone who purchases a motor vehicle with the intent of selling it for profit. This makes it sound like flipping one care, even if you take possession of title and register in your own name. That is the letter of the law. I understand the intent is to keep illegal businesses from popping up in residential neighborhoods, ensure state gets money for roads and to protect consumers. I’m having trouble getting straight answers about the grey area in between. Has your research given you any information about my state in regards to how many cars one could buy, repair and re-sell before getting into trouble?

    • Rebecca Turley says:
      First Quarter Finance logostaff

      Hi James,

      That’s a good question. I researched this and found out yes, you’re right about Kentucky dealer laws. Here’s a direct quote from the Kentucky MVC site: “A dealer license is required of any person who is engaged in the business of selling, offering to sell, soliciting or advertising the same, of motor vehicles, or possessing motor vehicles for the purpose of resale, either on his own account, or on behalf of another. There is no minimum or maximum number of vehicle transfers which are allowed before a dealer license is needed, and the requirement is not excused when vehicles are registered (and taxes paid) by the person who buys and sells them. The license requirement comes into play and a license must be obtained if one is engaged in the business of a motor vehicle dealer, even if it is only a single vehicle which is purchased with the intention of resale.” The cost of a license is $100. Now, the question is: Are these laws strictly upheld? I went on a couple discussion boards and learned that it is often is. One person said, “The KY MVC says that sometimes neighbors and even county clerks will turn people in if they suspect selling without a license.” They said that fines may result if you are caught selling a vehicle without a license. Chancing it by not getting a license may result in a fine of more than $100, making you wish that you would’ve paid the $100 in the first place!

      • Thanks, I suspected as much. The 100 dealer license is not a problem but they also require a car lot with full garage and sales office open to public with 250,000 min liability insurance to even submit an application for a dealer license. Too risky in state of Kentucky.

  • Rosemary says:

    My 17 year old grandson bought a cash car and it is a lemon on a car so what can be done. Is it legal for him to buy it or not.

    • Rebecca Turley says:
      First Quarter Finance logostaff

      Hi Rosemary,

      I am not quite sure what you mean. Could you provide me with more details so I can see if I can assist you?

  • Rachel63 says:

    Hi,
    I am not mechanically inclined but the difference in the cars prices in Mississippi vs a lot of other states is outrageous. Is there a risk when you buy a car and the title is clear that this is not accurate. Would carfax always be up to date? Can people really roll back the miles? Is there a way to see the car that sells the most in the south? Last what is the best way to tell if your buying a car and it’s a great deal? Car guru car.com No there is one more question, what is a good way to know how to price to resale other than looking up resale value. Thank you so much for answering our questions. Also is there a website or book you recommend

    • Sarah Quinn says:
      First Quarter Finance logostaff

      Rachel,

      Carfax sources their information from many different places — registration records, police records, title records, and so on — and they may not have complete information on every single vehicle. For example, someone could potentially have a problem with their vehicle, fix it on their own, and never have the issue show up on Carfax. The miles certainly can be rolled back on a vehicle; hopefully, odometer fraud would show up on Carfax, but you can never be 100% certain. “The south” is a very broad region, so it would be difficult to say what car sells best over such a large area. To learn more about how much you should spend on buying a used car, I recommend looking at our article on that very subject. As to your question on setting resale value, I recommend checking your local market and Kelly Blue Book. I hope this helps!

  • Name* (displayed publicly) says:

    have you heard of auto dealer consulting? whats your opinion on getting a dealers licensed under a dealership?

    • Sarah Quinn says:
      First Quarter Finance logostaff

      Yes, we’re familiar with auto dealer consulting. Are you interested in becoming an auto dealer consultant, or in using the services of one? If you’re hoping to a get a dealer’s license through a dealership, the amount of commission you would make on selling vehicles would certainly be less than what you’d make if you were working for yourself; of course, you’d also avoid many overhead costs that come along with being a small business owner. The pros and cons of working through a dealership vary greatly depending on your long-term goals, the amount of risk you’re comfortable assuming, and the options available in your area. Let us know if you have additional questions.

  • So legally what’s a difference in a small dealer with a stock of 5-8 old used cheap cars working from a small place and a big dealer of with 50-100 used/new cars with a huge display/showroom?
    I mean the legal requirements to be a cars dealer are same for both regardless of the capacity of investment, area covered and number of cars.
    Is it not strange? It means to start working as a small dealer is more difficult by covering all the requirements same as the big dealers do. So starting business with survival and competition becomes more difficult for small dealers in such a situation, which I think is unfair as it discourages small businessmen.
    Thanks

    • Sarah Quinn says:
      First Quarter Finance logostaff

      Sam,

      I can understand your frustration. I recommend contacting your state of residence for more information about their dealer licensing policies, specifically regarding any policies that may favor small business owners. I hope this helps!

      • The state office REQUIREMENTS for dealer licensing are same for big or small dealers as I said in the previous post, there is no special incentives for small dealers, which makes the situation hard for new entry in used cars dealership. Thanks

  • So theoretically, here in California (where I’m pretty sure the limit is 5 cars), would I be able to flip more than 5 cars if I am not registering any of them? Does the 5 car limit only apply to cars that I register?
    Thanks!

    • Sarah Quinn says:
      First Quarter Finance logostaff

      Ryan,

      The registration grace period does offer you a time period in which you can sell additional cars beyond the five-car limit. In California, you have a grace period of 30 days in which you can register a vehicle you’ve purchased. The DMV is encouraging vehicle owners to use renewal by mail or its internet renewal program to renew vehicle registration; these alternative renewal methods automatically waive late fees for the 30-day grace period but will assess a penalty of 60% of the VLF on the 31st day. The DMV will refund any overpayments to car owners who were unaware of the 30-day grace period if they included penalty fees in their mailed payments. However, it may take a month for the refund to be processed.

  • hi i see a van for sale from a dealer in ny could resell for at least $2500 more in my area in nj whats the best way to buy it from the dealer without having to regester….paying taxes….

    • Sarah Quinn says:
      First Quarter Finance logostaff

      TK,

      We would never recommend that you attempt to purchase and resell a vehicle illegally, and avoiding taxes and registration is just that — illegal. If you’re interested in learning more about the process of purchasing and registering a vehicle in NY, I recommend the NY Department of Motor Vehicles page on sales tax information (information about registration is included as well). I hope this helps!

  • I am new in US, moved in to PA and wish to start selling used cars (5-10) cars from home. Is it legal?
    Or will I need a proper business place for this purpose? Do I need bond for business?
    For a new resident in US what could be an economical way to get cars trade insurance and bond?
    I was in auto business for years in Europe, now new to US, but am experienced in auto business. Wish to continue here in US but it looks quite complicated in US with too many requirements.
    Thanks

    • Sarah Quinn says:
      First Quarter Finance logostaff

      Sam,

      Welcome to the United States! If you plan on buying and selling used vehicles, you’ll need a dealer license. There are, indeed, a significant number of requirements. As you apply for your license, you’ll learn more about the requirements for your place of business and the other laws and regulations for your state. Good luck to you in your business endeavors; I hope this helps!

  • Is it possible to sell used cars out of a barn (where they will be stored & repaired) on a property zoned EFU?

    • Hillary M. Miller says:
      First Quarter Finance logostaff

      Hi Ann,

      That’s an interesting question. It seems that zoning laws are quite localized, especially for EFU zones. An article from the Law Office of Bill Kloos PC states, “Allowable nonfarm uses are incorporated into local zoning regulations.” The article is referring specifically to land use in Oregon, but laws can vary similarly by locality in other states. Based on this information, it seems your best option is to contact a state or local office to find out more about allowable uses for an EFU property. I hope this helps!

  • What actions are actually required post-purchase? Do I have to register the car i will flip? can i just pay for the title and other info and not register it if i’m not going to be driving it anyways?

    • Hillary M. Miller says:
      First Quarter Finance logostaff

      Hi Tate,

      The required actions following purchase will depend largely on the laws of your particular state, and your plan for the car. For example, Wisconsin allows just two days between the purchase of a car and when you’re required to register it; other states have a longer grace period, up to 60 days in some cases. Most states require you to register a car even if you are not driving it, but again, specifics can vary considerably. It’s best to visit the DMV website for your state and, if necessary, contact a representative for clarification to ensure that you don’t inadvertently break any laws in the course of your car flipping ventures. Best of luck!

  • Phillip mueller says:

    Thank you for the great advice. I’m a little confused on how to acquire a dealers license with out a car lot. I’m from IL.

    If you could clarify that would be helpful

    Thank you

    • Hillary M. Miller says:
      First Quarter Finance logostaff

      Hi Phillip,

      That’s a great question! The state of Illinois doesn’t make it particularly easy to understand the process and requirements of granting a dealer’s license without a car lot. A pamphlet regarding the Illinois laws for a dealer’s license states that dealers will generally be required to show proof that they have a lot, that it is properly zoned, and that it contains all the necessary equipment to carry out business in compliance with auto regulation laws; it also says that these requirements do not apply for a vehicle auctioneer licensed under 625 ILCS 5/5-700. It does not specify any further information about getting a dealer’s license without a lot, or how many cars an individual can sell per year without a dealer’s license. I would recommend contacting a local DMV office for further clarification so that you can find out the laws and requirements that apply to your specific situation. Best of luck!

  • Diane Rusell says:

    A lumber business in our town will sell used vehicles to it’s workers. I don’t know how they acquire these vehicles. They have the payments taken out of their payroll check. I would like to know if this is legal. My son bought one and they have keep poor records of payment. My son has most of his check stubs but not all and said he has paid in full. They have notarized papers that my son never signed! Should they have a dealers license to sell cars? What about financing license? From what I take they have done this to more than one person. We are in Georgia if that makes any difference. Thanks for any help or advise.

    Diane

    • William Lipovsky says:
      First Quarter Finance logostaff

      Hi Diane,

      From the research I’ve done, it appears they can do this as long as the payment isn’t more than 25% of his total income. The notarized papers are troubling. If your son no longer wants the vehicle, I’d try to ‘sell’ it back. They may be just fine doing this and it would get you out of the mess.