Flipping Cars

Please read this surprising testimonial now…..

dealer license

“If you want to be confused, in trouble, possibly fined, and have that “knock at the door” from some government agency….. then sell cars like the internet tells you to.

If you want to have real help, the truth, accurate advice, and the clearest step by step process to make money selling cars legally then Don Massey’s e-books are for you.

When I found them (in the midst of the misrepresentations on the internet) I immediately paid for them, got more than I paid for, and the SHOCKER of all SHOCKS I actually got to speak to the MAN HIMSELF.  I downloaded the ebooks in less than 10 minutes after paying.

This guy is an EXPERT and has the track record to prove it.

Don’t tell Don I said so but after using his books and getting it done LEGALLY I would have paid ten or twenty times the $27.00 he asked.”  My son and I now have our license.

Thanks Don!

Richard R. in Oklahoma

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5 Important FACTS You Need to Know About Flipping Cars

 1. Flipping cars is illegal! Read details below!

2. It’s a violation of your state laws

3. It can include possible federal and state tax fraud!

4. It may have heavy fines or jail time associated with it!

5. Flipping cars could stop you from ever getting a dealer license

Don Massey

Don Massey
A Colorado Dealer

I hope I have your attention.  

I’ll explain the facts about flipping cars!


But first, let’s define what “flipping cars” means.

The definition is to buy and sell cars without a dealer license.

Another name for it in the auto industry is curbstoning.  Individuals who want to sell a car usually park it at the curb with a for sale sign in the window.

 The California DMV says….Curbstoning is the repeated, unlicensed “flipping cars” for profit.  Curbstoners are people who buy and sell vehicles without a license.  They do not have proper permits or a place of business.  Many times, they represent themselves as private sellers to attract buyers.

dealer license hq

So on to the facts Jack….

Flipping cars is illegal!

  • To buy and sell cars, for profit, without a dealer license, is illegal in EVERY state.  

  • States MAY allow a small number of sales without a license.  This is usually 3-6 in a 12 month period.  

  • Check your state’s requirements!!!!!!!!  

  • Many states set the number at absolute ZERO.  

  • ZERO: California, Oregon, Kentucky, Minnesota, Mississippi, Montana and Georgia.  Here are some states where it is TWO:  Florida, Nevada and Utah.

  • Don’t believe what you read on the Internet blogs and forums.  

  • Check with the licensing group in your state.

    As an example here is what Georgia’s FAQ website states:

I thought I could sell up to five vehicles in a year before I had to be licensed?

The “five cars per year” statement has been misinterpreted by many people.

The sale of five or more used motor vehicles in any one calendar year shall be evidence that a person is in the business of selling used motor vehicles.”

This means that if a person has sold five or more used motor vehicles in any one calendar year then that person is engaged in the unlicensed sales of used motor vehicle.

This statement should not be misinterpreted to mean that a person may sell up to five vehicles in a year before becoming licensed.

It’s a violation of your state laws!

The auto industry is one of most regulated industries.  

A car is one of the most expensive buys a consumer makes.

States have passed dealer licensing regulations and rules to protect the consumer

The states have inspectors to check for curbstoners.  They track by title transfers using names and addresses in the state DMV database.  They check Craigslist for repeated sales by individuals.

If you’re selling cars unlicensed for profit (flipping cars) your state will take legal action against you.

Your violations may include federal and state tax fraud!

Some car flippers will slip a title or use an “open title”.  This means they never register the car in their name.  They leave the buyers info on the title blank so they can fill in the name of the person they buying it.

When a car flipper buys a car he is the new legal owner.  EVERY state requires a new owner to register the vehicle, get a new title and pay fees and taxes.  To not do this is tax evasion.

When an individual vehicles for profit they must pay state and federal income taxes.  To not do this is tax evasion.

It can have heavy fines or jail time associated with it!

Flipping cars can get you in legal trouble.

Here’s Georgia’s statute  (O.C.G.A. § 40-2-39.1 – GEORGIA CODE)

(g) Any person who violates this Code section shall be guilty of a misdemeanor and,upon conviction thereof, shall be subject to a fine not to exceed $1,000.00 for each violation or imprisonment for a period not to exceed 12 months, or both.

South Carolina law :  If you operate as a dealer, wholesaler, auto auction, or transporter without the proper license, you may be convicted of a misdemeanor and fined up to:

1. $200 and/or imprisoned for up to 30 days for first offense.

2. $1,000 and/or imprisoned for up to six (6) months for second offense.

3. $10,000 and/or imprisoned for up to two (2) years for third and subsequent offenses.

ALL states have similar statutes, fines and possible imprisonment for violating dealer licensing laws.


Follow what the YouTube videos and “flipping cars for profit” web sites say and you could be toast!


Flipping cars for profit could stop you from ever getting your dealer license! 

An applicant has been found guilty of past fraudulent actions for the sale or lease of motor vehicles.  Most states will deny this application for a dealer license . 

As an example here is Arizona’s law.

An applicant convicted of fraud or an auto-related felony within the last ten years or any other type of felony within the last five years will have his or her license application denied.


Don’t be a an illegal flipper!


dealer license

“1 LEGAL flip a week can be a $1,000 profit”

dealer license


dealer license hq

Follow The EXACT Formula I Used To Qualify for My License and…..

  • There is no experience necessary,

  • No expert skills required,

  • Anyone can do this. 

  • Just take a few minutes to find out how today…

All you need is to get the right tools and systems working for you to get your license.

   9Don Massey

Hi!  Welcome, I’m Don Massey – Colorado Dealer License #38936

For over 20 years, I’ve helped people get their dealer license.  Let me help you.

A dealer member of National Independent Automobile Dealers Association and Colorado Independent Automobile Dealers Association.

Dealer License Consulting, Don Massey, 8201 Lighthouse Lane Ct,  Windsor CO 80528


(970) 988-3682        help@dealer-license.com





Flipping Cars — 234 Comments

  1. Hi Don,

    If I was to get a California Wholesaler license would it be legal for me to buy a car wholesale and then have an auction house that sells to the public sell my car for me?

    • Jeff

      If you purchase a car as a wholesale dealer, your wholesale business owns the car. Wholesale, Retail Dealers, rental companies, banks, etc use the services of dealer only auctions to find a buyer
      for their vehicles. The auction does not “SELL” the car because the auction doesn’t own it. The public is not allowed into these auctions.

      In a public auction, just like the dealer only auctions, the owner of a vehicle (dealer or individual) uses the auction services to find a buyer through the auction (bidding)
      process. The auction does not own the vehicle.

      As a wholesale dealer, you may only sell to other dealers, so there is no way to have the auction own the vehicle.

      Hope I’ve explained it so as you understand.

      Simplified, auctions do not own the vehicles and you, a wholesale dealer, cannot sell it to them anyway.


    • J
      The Missouri Dealer Handbook states: You must be licensed as a dealer if you sell six or more vehicles in a calendar year unless you are:
      1. A financial institution or selling repossessed motor vehicles;
      2. Disposing of vehicles used and titled solely in your ordinary course of business; or
      3. A collector of antique motor vehicles.
      Here is the link to the Handbook: http://dor.mo.gov/motorv/liendeal/documents/DealerOperatingManual_002.pdf

      So you can only buy and sell 5 (not 6) in a calendar year (not 12 month period unless it is the calendar year)

      Most states the number is ZERO. So you have to check the law in your state and not depend on what someone else has
      said or what is in comment sections and forums on the internet.

      Sorry for the delay in answering. I was in the hospital for 12 days. All fine now.


  2. I live in Missouri and am confused with the title loan companies they are selling the repos without a dealer license and dealers are required to have a safety inspection done on every car they sell to the public but the banks ,title loan companies sell to anybody without a license if that is the cas wouldn’t we be better off becoming a title loan business

    • Mike
      Most states don’t require dealer licensing for repo sales by banks/credit unions. Why? They don’t have a continuous inventory of vehicles to sell. They are not in the car selling business. The vehicles are clearly sold AS-IS with no warranties. The buyers understand they may be buying a loser.

      If you wish to deal with repossessions, then yes, start a loan company. 🙂


    • O.C.G.A. § 40-2-39.1 – GEORGIA CODE…”shall be subject to …” You, i presume are a “Lawyer”/attorney and as such You are aware “SHALL” is a FUTURE TENSE Word?
      and ANY “LAW” Written as “SHALL” has ZERO enforcement Power….
      SHALL verb 1.(in the first person) expressing the future tense.
      “this time next week I shall be in Scotland”

      • K
        You’re absolutely right. The use of the word “shall” has even gone to the Supreme Court. And all the laws written with the word “shall”
        have not been changed, yet But if I lived in Georgia and I disagreed with the application of the law because of the wording “shall”, I would have to
        hire a lawyer to present my case which would be very expensive and not worth it. The Georgia agency which found I was violating the law is not going to stop enforcing it
        due to the misuse of the word “shall” rather than “will”.

        I’ll just follow the laws in my state because I don’t want to hire expensive lawyers to just make a legal point. Most of us can’t afford it. Go to the legislature to change the ONE word in the law.

  3. A lot of ripoff artists exist that have a license as well. Probably even more and they go mostly unfettered. So it is not about “consumer protection” as much as it is about tax collection.

  4. Don,
    I live in PA. What is the amount of cars that can be sold without a dealers license? Also what if I am selling to a dealer, such as a CARMAX, Carsense etc… Does this count as an unlicensed sale? Does it count as a B2b sale

    • Howard
      From what I read from the rules it is 5 BUT you need to call the Dealer Board at Phone – (717) 783-1697 to verify.
      It doesn’t matter who you sell to, an individual or a business, if you sell over the quantity, a dealer license is required.

  5. Don,

    I have a friend who has been a ‘straw buyer’ for an export company. They are buying high end cars and shipping them overseas. He is only the buyer using the exporters cashiers checks and signing over the title to them after driven off the lot. Even though this is not illegal, can the state come after him for making a commission on these cars even though taxes are paid? I suggested get a dealer or wholesale license and do this. He is in Illinois…is this too good to be true as they will do any amount of cars. Is this on the up and up or something to be worried about?
    Thank you in advance.

    • Brandon
      You don’t have enough details to give a complete answer. When you say he is signing the title over to them after driving off the lot, does that mean the car is not titled or registered in his name even though he was the buyer. Does he not sign the title as the buyer even though he was and signed documents saying he was? Most states require the dealer to collect sales taxes on auto purchases. You didn’t say if these were new or used vehicles.
      If he is making an income on this business, then yes he should pay income taxes. He is an employee or agent for these exporters. What ever they PAY him to do the deals should be reported on a W-2 (employee) or a 1099 (contract employee) by these exporters. If they do not give him a W-2 or a 1099, he still has to report and pay taxes on the income he is making.

      • Don, thanks for getting back. These are brand new Mercedes and Rangerovers and the taxes are being paid with the cashiers check. The cars are registered in his name and once he receives the titles in the mail he gives it to them. The car is already in their possesion. He just started doing this, this week, so the titles have not even came from the state yet. Yes, he is a 1099 and they are giving him a commission per say. By doing this can he purchase more cars than say 4 per year and not worry about a license? From some of the research I have done, this looks like a way around the signing of the non-exporting clause to the exporters. I am leary on this whole deal and trying to look out for him. After reading and seeing some of these exporting profits, I will be buying your book soon to learn for myself.

        • Brandon
          I can’t answer the question about whether this solves the issue of the number of cars he an buy and sell a year. The question is whether he is buying the cars or just acting as an agent for the exporter. Only your state dealer licensing board can answer that question. The non-exporting clause that dealers may require is at the discretion of the dealer. It is not a law. It is a requirement that the manufacturers place on the dealer.
          Paying cash for a new Mercedes or Range Rover should be a heads up for a dealer to have the purchaser sign the non-export document. BUT dealers don’t want to lose sales so they may conveniently decide not to have the document signed and plead ignorance if the manufacturer discovers the vehicle was exported. How does the manufacturer discover these sales. The primary way is when the overseas buyer takes it to a dealer for warranty work.

  6. What about buying a car from someone who is ‘flipping’? Is there anything illegal about it if I get a clean title and pay the taxes myself?

    • Marc
      I would think there would be no problem. BUT, I don’t know all the rules and laws of such a question. So, if I was you, I would call your DMV and ask. You can do it incognito.

      • Is curbstoning the same as intentionally purchasing vehicles from a keystone auto auction with the intent to sell. I know someone who buys cars from an auto auction for maybe 500$ and then he will turn around and try to sell it for 2500$ or less. Now what he does then he gets someone to make payments while the vehicle is still in his name and insurance as well. Then if something goes wrong with the car he gives them another car to use while he gets the car he is selling fixed. Note he does not have a dealer license either. Is this ok?

        • Ashley

          Wow, this is a new one!

          The only place to find the answer is from the dealer licensing group in your state.

          I see three potential issues/answers.

          1. Yes, he is curbstoning. He is buying and selling cars for profit. The financing of the purchase and closing is a separate issue.

          2. What would his insurance company think about this whole process? They are liable for a person who possesses the vehicle and drives it as the ONLY driver
          but is not on the policy.

          3. Is this a type of lease/purchase plan? Auto leasing is regulated by individual states as part of protecting consumers.

          I think it is extremely short-sighted to do this. The personal liability of the owner/seller, if the person driving the car has a major accident with injuries or deaths, could be enormous. The insurance company after investigations could say this use of the car is not covered under the insurance.


    • Is it legal for a resident from one state to buy multiple cars from one state and have them transported to his home address for sale purposes?

      • Terry
        To sell cars in a state for profit, one needs a dealer license in the state he is negotiating, demoing and finalizing the sale. It does not matter in what state he purchased the cars. Each state has a minimum sales limit that does not require a license. This can be anywhere from ZERO to 12. Most states it’s in the range of 4-5. Some states, it’s zero.

  7. Hello Don,

    If someone is a dealer are they allowed to sell cars in a residential area? More specifically can a dealer sell cars in an area where both they and their customers don’t live?

    • Joseph

      Please excuse the late answer but some some personal issues with family illness that took my time.

      To answer your question. EVERY state requires a dealer sell the vehicle from the business location.
      Could they take the vehicle and demo at a person’s home? Of course. But deal and paperwork is to be finalized at the dealer’s business location.


  8. Selling your legally owned car which is registered in your name is not illegal! Just because someone sells his/her car that doesn’t mean there is a profit in it. As a matter of fact one may spend a lot of money on repairs then have to sell his car and actually lose money! Stop making blanket statements and giving inaccurate legal advice! I agree that no one should trust what is written on the internet blogs and that includes yours! If someone needs legal advice there are much more reliable sources than a website named “dealer-license.com”.

    • Adam

      A person can sell their own personal vehicles without a license. But the flipping of vehicles for profit is a BUSINESS that requires a license.
      You can fix your own plumbing but when you fix others for a fee it requires a license. The same is true for electricians and barbers and contractors
      and home builders and car sales, etc etc.

      The webpage/video say. If a person intentionally flips (buys and sells) vehicle(s)for profit, every state requires them to have a dealer license because they are operating a vehicle sales business. The webpage states:

      +To buy and sell cars with the INTENT of profit, without a dealer license, is illegal in EVERY state.

      +States MAY allow a small number of sales without a license. This is usually 3-6 in a 12 month period.

      +Check your state’s requirements.

      +Many states set the number at absolute ZERO.

      It is zero in my state. What did I get wrong?


  9. Hey,my question is,if I buy a car for personal use for let’s 1,000 I used the car for three months,someone ask would I sell it to them,and I say for 2,000
    They paid me twice as much as I paid,how would I be wrong in for making a profit if someone’s willing to pay,that’s what the dealer’s do,why do you need a license to sell,if you don’t need a license to buy?I’ve seen somewhere that we really don’t need a license to drive its not in the constitution,please give me insight on this.

    • Everett

      In the example you give, there is absolutely no violation of any state dealer licensing laws or rules. It’s when a person does this multiple times, as a dealer does, is when a state’s law regulating dealers kick in.. When one flips multiple cars the laws of a state are violated.

      The Constitution does not directly address the buying and selling of cars nor the needs to have a driver license. Thomas Jefferson and George Washington were not concerned about these two issues. The Constitution gives states the freedom to make laws as needed. When the law or rule violates the personal freedom of an individual,
      as guaranteed by the Constitution then lawsuits are filed in federal courts to have the state laws ruled illegal. Dealer licensing laws have not been found to violate personal rights.


  10. Hi don, I currently live in New Jersey. If I was to get license for private dealership that I’m willing to run legally. In order for me to fill out my lot with used cars, do I need to sign trh titles as buyer under my name and have it registered? In order for customer to check, text drive, and sell it to them afterward? Basically, so I need make all title or title of all cars in lot under my name after buying from someone else?

    • Shrhab
      A dealer does not sign a title as buyer. On titles there is an assignment section. The dealer fills in this section. He does not need to register the vehicle and have a new title issues as a consumer does.

      When the dealer sells the vehicle the buyer completes the buyer section. The buyer takes the title to the DMV and registers and gets a new title in their name.

      Hope that helps. That and more information is in my ebooks on the dealer license.

  11. Hi, I’m the executive director of a small non-profit organization in NY state. We were given a car by a generous donor for the purpose of selling the car and keeping the proceeds to further our mission. The donor signed the “seller” information on the back of the title. I want to know if I have to complete the “buyer” fields or can I just leave it blank for the new owner who buys the vehicle from our non-profit.

    • Laurie
      My initial response is no. But acting as a now profit, your state may have an exception rule.
      Here is the website address for New York and the telephone number.
      Sorry I did have a satisfactory answer. Best wishes in your support of single Moms.

  12. Hi Don –
    Does your program apply to motorcycles? I’m looking to get into the buying/selling of titled motorcycles for road use as well as ATV’s, Dirt Bikes, etc for recreational use? With my background being a motorcycle tech, that is my comfort zone on product knowledge and the market.

    • Hi Don:

      I have a question. I have been flipping cars for 2 years. I want to understand how DMV tracks someone’s sales. Whenever I bought a car I did put my name on the back of the tittle and my address, but never registered the car. I just re-assigned to the new owner with a bill of sale. Would this be considered an open tittle? I am not understanding very well. Thanks for your response

      • George

        A definition of an open title or “slipping the title” is where a title is never issued for a retail buyer with their name as owner. You are a retail buyer. By not registering (plates and taxes)and titling the vehicle you are not paying these fees and taxes. This is illegal. Tax evasion an violation of DMV laws/rules in your state. I smile at your question of how does the DMV track sales or how do they catch me?

        I always ask flippers what are they doing about insurance? Since they are not registering and tagging the car they don’t have to show proof of insurance. Driving ANY vehicle without insurance is absolutely stupid and irresponsible. What if the flipper is the cause of a vehicle accident and injures another person, say a child. How will the other vehicle’s repairs be paid? How will the medical bills for the child be paid?
        What happens if one flipper has an accident with another flipper? Both uninsured. How will the accident affect the families of both?

        How is the vehicle being driven with no plates? Do the previous owners leave THEIR plates on the vehicle?



  13. Hi Don. Great information you offer here, I appreciate the work you put into it. I’m in Georgia and am looking into getting a broker’s license. Just wanted to point out a couple of things. The code section you cited (O.C.G.A. § 40-2-39.1) deals with allowing vehicles for sale to be parked on property you lease or own, or parking a vehicle you own on someone’s property when offering it for sale. A grocery store I worked at inadvertently ran afoul of this by allowing customers who had cars they wanted to sell to park them at the end of the lot. At one point there was about 15 cars out there.

    The more applicable code section might be O.C.G.A. 43-47-2 (17)(A), which you quoted in your page. As you noted, too many people interpret that to be “implied permission” to flip 4 cars without consequence. But, the implied permission isn’t a reality if the end goal is profit.

    Another potential pitfall is in sales tax. If convicted under O.C.G.A. 43-47-2 (17)(A) of acting as a dealer, it opens the door for the Sales & Use Tax Division to come after you for failing to collect and remit sales tax. You can be fined for that, as well as having to cough up the dollars to cover the taxes. Just another reason to do things the right way. Especially here in Georgia because it isn’t overly difficult or expensive to get a license.

    Thanks again for a great resource.


  14. Don – please clarify or point me to the regulations: for an individual in the state of New York, if five or less vehicles are sold in a calendar year, a dealer license is not required, correct? But if more than five are sold in a calendar year, a dealer license is required? And also clarify, is the limitation based on a calendar year, or any twelve month period?

    • Max… Here is the New York regulation on dealer licensing. I won’t interpret it for you. If you have ANY questions call the NY DMV. Especially paragraph (b).

      Registration Procedure Section 78.1 Introduction.
      (a) Section 415 of the Vehicle and Traffic Law, as amended effective January 1, 1963, provides that no person shall engage in business as a dealer, or represent or advertise that he is engaged or intends to engage in such business in New York State unless there shall have been issued to him a certificate of registration as provided in subdivision 7 of section 415 of the Vehicle and Traffic Law. Therefore, any individual, firm, corporation, co-partnership or association engaged in the business of buying, selling or dealing in motor vehicles, motorcycles or trailers, other than mobile trailers, at retail or wholesale, shall be required to make application for registration with the Commissioner of Motor Vehicles and shall not be permitted to engage in the business unless the application is approved and a certificate of registration issued.

      Any person who sells, or offers for sale more than five motor vehicles, motorcycles or trailers, other than mobile home trailers, in any calendar year or who displays or permits the display of three or more motor vehicles, motorcycles or trailers, other than mobile home trailers, for sale at any one time or within any one calendar month upon premises owned or controlled by him, if such vehicles were purchased, acquired or otherwise obtained by such person for the purpose of resale, will be regarded as a dealer.

      (b) A dealer engaged in business consisting in whole or in part of buying, selling or dealing in motor vehicles, motorcycles or trailers at retail shall be required to register as a retail dealer.

      (c) A dealer engaged in business consisting exclusively of buying, selling or dealing in motor vehicles, motorcycles or trailers at wholesale is required to register as a wholesale dealer.

    • Tom
      FOUR in any 12 consecutive months. It’s in the Dealer Regulation Manual for NC.

      My resources at http://dealer-license.com shows you the 12 steps to get the license to be legal.

      Here are the details
      (11) Motor vehicle dealer or dealer.
      a. A person, who does
      any of the following:

      1. For commission, money, or other
      thing of value, buys, sells or exchanges,
      whether outright or on conditional sale, bailment lease, chattel mortgage,
      or otherwise, five or more motor
      vehicles within any 12 consecutive
      months, regardless of who owns the motor vehicles.

      2. On behalf of another and for commission,
      money, or other thing of value,
      arranges, offers, attempts to solicit,
      or attempts to negotiate the sale,
      purchase, or exchange of an interest in
      five or more motor vehicles within
      any 12 consecutive months, regardless of who owns the motor vehicles.

      3. Engages, wholly or in part, in the
      business of selling new motor vehicles or
      new or used motor vehicles, or used mo
      tor vehicles only, whether or not
      the motor vehicles are owned by that
      person, and sells five or more motor
      vehicles within any 12 consecutive months.
      4. Offers to sell, displays, or permits
      the display for sale for any form of
      compensation five or more motor
      vehicles within any 12 consecutive

      • Hey Don…..I have been a licensed small time used car dealer for 40 years / in the Northeast……My license lets me wholesale and retail, but over the years i have been wholesale only. I run the auctions strictly selling there.
        Here is the question…..
        The big time guys/ wholesalers that have huge operations have buyers all over the country, buying cars most of the time directly from new car dealerships / 90 day old cars and just stuff that the new car dealerships feel that they cannot retail.
        These buyers under your above post work for the wholesale operations and we know that they are not licensed dealers.
        Not once have i heard that the buyers for the wholesalers must be a licensed dealer as mentioned above to receive a commission/ money……Not once have i been told that the buyers are doing illegal acts. Thanks
        Please explain…….Thanks……..

        • Lawrence…. Based on what you’re saying, these buyers are using the auction access of a dealer. They are, in effect, employees of the dealer. As an example, I have a wholesale license. I could use experienced buyers to go auctions for me and pay them a fee for each vehicle. They don’t need a license to do the buying at the auction. They are using my account. They are selling the vehicle. Am I understanding your comment?

  15. Hi Don, IL resident here and ever since I got my drivers liscense I have been buying cars fixing them up while driving them around and selling for profit or trading for nicer cars. Been interested in starting to legitimize this and make things legal so I can do it with more vehicles. Can you obtain a dealers liscense and not own any kind of dealership? Fixing up cars in my garage and selling them through craigslist, local ads ect? Is the only thing holding me back from being legal a liscense? Or is there more to it?

    • Eric
      You don’t have to have a “dealership” or a “lot” but the state does require a business location. There is no way around it. There are cheaper options
      you can use to find a low price business location. You also have to have a bond and insurance. this is all explained in my material on http://dealer-license.com
      Good luck

  16. Hello. Your website has been very informative ( I didn’t know there were any restrictions on selling cars for a profit) but I have one question. Do I need to buy a car lot to legally sell cars? I live on a large rural property and I thought I could store them there, then move up to a lot. I live in WA.

  17. Can a used car dealer export used cars by themselves to another country? If the used car dealer will be able to obtain export permit is that legal?

  18. These laws will rarely get enforced. First off u say some states have limits on the number of cars u can sell! Some states say absolutely ZERO. This is BS. Basically if u sell your car its illegal. Some states u say are 2. So if a guy owns 3 cars and decides to sell 2 this yr thats illegal also? BS again….

    • Mike

      The words you missed “buying and selling for profit”. An individual can sell his own vehicle without a license. We are allowed to sell our personal vehicles. If you are buying and selling for profit and go over the max number for your state, then a license is required. Really! No B.S. If your state does not enforce it’s laws, so be it but there are states that do.

      Take a look here: The law in Washington: http://app.leg.wa.gov/Rcw/default.aspx?cite=46.70.021 The fines for violating the law in Washington: http://www.dol.wa.gov/business/disciplinary/disciplinarydealer.html Several every month!

      If I lived in Washington and followed your general comments (“these laws rarely get enforced”) I could get in a lot of trouble.

      We have to find out in each of our states the law and then decide to want to follow it or take the chance of nothing, fines or jail time. Yes, in some states it’s a misdemeanor offense to buy and sell cars for profit without a license.

      I don’t make the rules and laws. I don’t understand why commentators go after me when I only attempt to educate folks. And yes, to provide access to my resources on http://dealer-license.com for those who want to operate a profitable, legal business.


    • James
      With a license in Texas you may sell cars in Texas. You do not sell cars on-line. You ADVERTISE on-line.
      To clarify. You are licensed to sell cars in Texas, that is the car is located in Texas and the sale takes place in Texas.

      I live in Colorado. If I had a dealer license in Texas, I could not sell cars located in Colorado. If I am doing business in a state I must be licensed
      in that state. Same goes for licenses for plumbers, electricians, doctors, lawyers, etc.

      I am explaining this because there are offers on-line to get you a license in a state other than you are going to sell your cars you will buy at auction.
      Also there are companies that will co-op you with a dealer in your state. Problem: the negotiating and closing of the deal must take place at the dealer location.
      You cannot show cars from at your home or a Walmart shopping center with a co-op license.

      If anyone reading this disagrees, call your state’s licensing group to get the answer. You can find their telephone number here: http://dealer-license-requirements.com

  19. Hello Don, Thanks for the info. In Virginia I think you’re allowed 4 vehicles per year. My question is do they look at it per calendar year or for any 12 month period? I sold 5 vehicles from Last September to this August, All of the vehicles were titled and 3 were registered and my own daily vehicles. Thank you

    • Chris The Virginia code says; “Offers to sell, sells, displays, or permits the display for sale, of five or more motor vehicles within any

        12 consecutive months”

      Please explain the cars that were titled but not registered. NO license plates? Were the titles in your name? Don

  20. Hi Don I purchased a car from a person in San Clamente Ca. In August and I’m having a hard time smoging it. I was told when I recieve the car everything will be in a envelope with the car. I live in the Bay Area. When I recieved the car, the only paper work was a Title Slip from Pennsylvania. Apparently the guy I bought it from purchased the car in March and never registered it. From what your advise I P/U from your comments is this guy has violated many laws. I was suppose to get a smog certificate from him also Ca. law.as well as other violations. Is there something I should do. I’ve paid the sales tax and started the registration process with fees paid and after Ca. Took my money, they say I can’t register it. 2 bladed knive. Any advise.

    • Kathy… the answer to your question vary form state to state. Some states say no. Others put a number of years since found guilty. Others will deny based on what the felony was.
      So you need to contact each state and find out. The best way is by phone. I have found many states do not include this question/answer on their website. Go to my
      website http://dealer-license-requirements.com and you will find the contact numbers for every state. Do not waste your time trying to find the answer on the net. You won’t find it. Go the agency making the decision and ask. Good luck Don

  21. If my brother gets dealer license in California, can I work there as salesman without valid drivers license as it is revoked!

    • Gurpreet
      On the salesperson application you must disclose any revocation of any license. I assume this would include a driver’s license.
      You need to ask your question directly to the California DMV. The number is (916) 229-3128 for general application questions.
      Good luck

  22. Great information here, Don, but what about Colorado dad’s like me who aren’t flippers/curbstoners but who sometimes sell three or more titled/registered motor vehicles every year (trailers are defined as motor-vehicles in Colorado (ColoradoRevisedStatutes: 12-6-102). We have four driving-age kids: two snowmobile trailers, two jet-ski trailers, a boat trailer, three motorcycle trailers, seven motorcycles, three scooters, a 28′ motorhome, a 24′ toy hauler, an F350 Ford pickup, a Suburban, a Lexus, a VW, a Civic and three Toyotas. I own these motor-vehicles for private, personal, family use; I paid whatever sales/transfer taxes that were due; I hold a CO title on them listing me as the owner on the face of the title and when I sell one or more of them, they’re not sold for a profit motive (most of the time they’re sold for less than I paid for them). For example, a bike we purchased this Spring turned out to be too tall for my daughter so we quickly sold it and got her a different bike. Likewise, a bike we purchased this Spring was too under-powered for my oldest boy, so we quickly sold it and got him a bigger bike. We’re probably going to buy a newer car for my daughter later this year and sell the Civic she’s been driving.

    According to Colorado DOR, I’m a motor-vehicle dealer because of prima-facia evidence that I sold a scooter, a snowmobile trailer, two motorcycles and a Toyota this year for money? Next year i might sell be six! According to the DOR, if a motor-vehicle is sold in exchange for any sum of money, the DOR considers it ‘for profit’. The DOR says there are no exceptions to it’s ‘un-official’ annual limit of three. The legal presumption is that the sale of three or more motor-vehicles in a calendar year is prima-facia evidence of flipping/curbstoning. Period. I’ve read the ColoradoRevisedStatutes and can find no exceptions whatsoever. I must now prove a negative……that I’m not flipping/curbstoning. But I can’t prove a negative. No one can. It’s impossible to do so.

    So, I must be missing something, or the DOR is. The folks at the DMV office here in Denver contradict the DOR. The folks at the DMV claim that as long as the motor-vehicle owner paid the sales/transfer taxes at the time the owner acquired such motor-vehicle AND that as long as the owner’s name is listed as the owner on the face of the title, there is no limit as to the number of motor-vehicles an owner can sell each year. What should I do? Have my attorney get a legal opinion from the lawyers in the Enforcement Division? Thanks Don.

    • Richard If all your sales were for personal reasons. Prima-facia evidence means you have to show otherwise. I could not see the State of Colorado coming after you for the scenario you described.

          • Yes. Every state has a limit from 0 to 12. My state it is zero (Colorado). Check with you state licensing group. Call them. Do not depend on the Internet for the answer.

      • You know what used car salesmen and politicians have in common? They both give confusing/contradicting answers. Your response to Richard states that there are no limits on personal sales. You then confirmed that the difference between personal sales and curbstoning is if the intention is to profit and then you say that there is a limit on personal sales. So which is it?

        • Glenn
          I knew this would happen. 🙂 Personal sales are when I sell a vehicle with no intention of making a profit. Individuals who sell their personal vehicles have usually have driven them a few years or put a lot of miles on them and there is no profit to be made.
          If I buy a vehicle with the INTENTION of reselling it for a profit then I am in the business of buying and selling vehicles which requires a dealer license with conditions. Each state defines those conditions in their dealer licensing rules and regulations.
          Now the next question is….. I have heard these so many times is… How does the state prove your buying and selling for profit? The under lying reason for this question…. how can I get away with violating the licensing laws?
          The titles are in the databases of all vehicles sold in a state. It has the buyer’s price for each titled issued. So if the next car is sold for more than it was purchased for… the state investigators become interested. So let’s say one buys and sells 5 vehicles in a year and the limit is 4. The DMV computers will spit out a report based on name and address that the number was exceeded and this is followed up by investigators when they see a profit on each sale. Here are results of investigations by sate investigators.
          Next question?

          • Oh ok so they can track the price a vehicle sells for each time it’s sold and if the price goes from one sale to the next they know a profit has been made. Alright that makes sense thanks

          • So in the state of Wisconsin the limit is 5 for an individual. Would a husband and wife count as one individual or 2? Likewise if I owned a company would the company and myself count as one individual or 2?

  23. Don, Thanks for taking the time to respond to the many questions posted here. I live in Az and as a hobby I find orphaned older vehicles to bring them back to life. After much hard work and expense I sell them on. I rarely if ever make a profit. My goal is to break even and the reward is bringing these old cars back to life. Generally I revive two or three cars a year. The last thing I want is a knock on the door by a DMV investigator accusing me of flipping when my intentions are not to gain a profit. My questions are as follows;
    Can I count my labor time against the sale price?
    Can I count parts I have accumulated and use against the sale price?
    And finally, as the bonding requirement in AZ for a dealers license is 100k what would a general estimate of the bond cost be?

    • Don
      I can’t answer your question about accounting but in AZ you can buy/sell up to THREE a year without a license. Here is the info form the AZ DMV.

      “Used Motor Vehicle Dealer” means a person, other than a new motor vehicle dealer, who buys, sells, auctions, exchanges or offers or attempts to negotiate a sale or exchange of any interest in, or who is engaged in the business of selling, four or more used motor vehicles in a continuous 12 month period. Used motor vehicle dealer does not include a wholesale motor vehicle auction dealer or public consignment auction dealer.

      I have a $100,000 in Colorado and it costs me $375 a year. The bond price is is usually based on your credit score. If you decide to go for your license remember I have a lot of resources on my website (http://dealer-license.com) to help guide you.


  24. Hi Don, thanks for your website information. What are the legal implications, if any, by buying a vehicle from Tesla (mfg is in California) with a Montana LLC that you control. Titling is done under the Montana LLC and then selling it to an individual/private party in Arizona that doesn’t charge sales tax?

    • Ryan
      Question. When you say an LLC, what do you mean i.e. why is the LLC formed? As a business partnership for dealer licensing? Or just an LLC for a business partnership?

  25. Don,
    I have read most of these posts and there are many good questions and answers. I too am looking into obtaining a used car dealer license. I have been very successful flipping cars in the State of Arizona and see the potential to get a license.
    Do you have any advise concerning funding i.e. SBA loans etc?
    Much like many of the people in the posts, it seems the “operating capitol” is the largest hurdle. You have a good point about obtaining an actual lot, but lets be realistic. If one was to operate a legitimate business, 2-3 vehicles does not pay the bills. Between the rent, utilities, insurance, equipment, lag time for an actual profit, there is a significant need of funds to “float” the business. I have a B.S. Degree, over 25 years in the Automotive industry and a solid business model.

    • John, In the auto industry the financing of inventory is done through “floor plans”. These use the car purchased at auction as collateral (lien) so the approval for obtaining a floor plan (line of credit) is easier than just getting a typical line of credit because there is collateral for the loan.

      This and many other issues not addressed in my videos are in my manual on my website. It’s worth the $27 because it has answers to questions you do not know to even ask. I’m not being critical, just letting you can spend a lot of time searching on the net and not find the information you need to be informed as you approach this business.

      The auctions such as Manheim provide floor plans with a third party service. You can find ads for financial serves in the National Independent Automobile Dealers Assoc magazine which you can browse here: http://www.usedcardealermagazine.com/read/account_titles/163463

      Good luck


  26. Thanks for having this web site. I live in Utah, where they allow an individual to buy/sell up to 2 vehicles a year without being considered a dealer. I want to purchase a vehicle from a Utah dealer with no intent of using or registering it in Utah. I plan to sell it to a private party in Arizona. The current Utah title is in the name of the dealer. The back of the title has a place for the assignment of the title and another place for the reassignment of the title. Can I purchase the car from the dealer and have him assign the title to me, then immediately take the car out of state and sell the car to the private party in Arizona, without getting the Utah DMV involved? I would simply fill out the reassignment of title area and give it to the guy in Arizona. Will this work?

    • Brian The reassignment area on titles is for dealer to dealer transactions only. Dealers do not pay sales taxes or title the vehicle in their business names. The transfer of the title by dealers is done by completing the reassignment information. Since you are buying the vehicle as an individual living in Utah, the laws of Utah say YOU must register and license the vehicle in Utah as a retail buyer. Then of course you can do anything you wish with the vehicle. Of course, as you know, if you are buying and selling for profit, the limit is 2 per year. If you find a dealer willing to do this with you, please carefully read all the info on a title. Most states have a statement, that says completing a tille with false iformation (you’re not a dealer) is reagarded as a felony. Don

  27. Hi Don,

    I’m a licensed salesperson in CA. I want to sell my personal car. Will I have to pay taxes (sales or income) on this transaction? Also, do the same rules/steps apply as if I were doing a transaction for the dealership? I appreciate your wisdom!


    • Amber

      There are no sales tax to be paid by a seller. Only buyers pay sales taxes.

      In Publication 525, the IRS says, “if you sold an item you owned for personal use, such as a car, refrigerator, furniture, stereo, jewelry, or silverware, your gain is taxable as a capital gain.” Report your gain as a capital gain on Schedule D (Form 1040).

      This is not usually applicable because we never sell personal items for more than we paid for them. I know I couldn’t get more for my car than I paid for it!

      But if you’re flipping cars for profit then taxes are due on the profits.


  28. Hey Don, I have a question for you. This might have already been answered but I wondering, if I live in PA, and I decide that I want to buy and sell cars Not For Profit, simply for buying a vehicle that may need repairs, and turning it into a good reliable safe vehicle and selling it to only people who have a genuine need for affordable reliable transportation without going into debt for it, then with the money made from the sale, putting the money towards business expenses for tools equipment and other things to keep the business running, then donating the rest of the money to a local charity or church, is there any licensing that needs to happen? Also at the time of purchase the vehicle would be registered to me, and I would file all paperwork with dmv and pay all the taxes and regulatory fees, then fix the vehicle and sell it for an affordable price, most likely well below fair market value, then when it is sold have the buyer file all the necessary paperwork and the money would go to a local charity or church and be used to purchase supplies for the business or tools or equipment or other vehicles so that there is no profit being made.

    Thanks for your help and advice in this matter. Have a great day!

    • Your question is so unusual I have no idea. I recommend you contact the PA State board and ask. You will not find the answer on their website or anywhere else on the Internet.
      I would think if you legally formed a non-profit you could do it. In my state there are non-profits who resell donated vehicles and do not need a dealer license. The telephone number of the State Board in Harrisburg is 717-783-1697.
      I would base your question on the fact you want to start a non-profit. Otherwise I would think they would say NO.
      Good luck. Please let me know what they answered. donmassey@gmail.com Don

  29. Don, i am a new licensed retail dealer based in AZ. I have family in CA so i visit alot and like the auctions there. If i purchase a vehicle in CA, advertise it online, can anyone in any state purchase it? I also have friends in the retail and wholesale car business in different states. Sometimes they request us to buy an sell to them. It is legal for me to do this even though we are in different states, correct? as we are all licensed.

    • Kimberly Yes, you can advertise on line and sell your vehicles to anyone in any state. Clarifications. The vehicle you are advertising to the public must be located in Arizona. You are licensed as a retail dealer in Arizona only, not California. You cannot advertise and SHOW (demo) vehicles in California to the public. Most people are not going to buy a vehicle advertised on line without seeing it and test driving it, anyway. Yes, as a dealer, you can buy and sell to any other dealer in any state. You could buy a vehicle at a dealer only auction in California and immediately sell it to another dealer in California. This is a business to business transaction between dealers and the states are not concerned about these transactions because a consumer is not involved.

  30. I am currently a licensed retail dealer in California and I have a question. If I purchase cars from private parties, do I need to register it under my dealer name and pay a sales tax and registration fees, even though I’m gonna be selling the car on my dealership? Confused about that?

    • Chris A licensed dealer does not register vehicles they purchase from auctions or individuals. That’s why you have dealer only license plates to put on your vehicles that you hold the title Don

  31. We need to liquidate all the vehicles and trailers I have because we are selling the House. Does a flatbed and a dump trailer count as vehicles, and what about my sandrail and our 5th wheel camper?? They all need to go and I cant wait a year to get rid of them all..

    • Justin You are NOT buying and selling with the intent of profit. So I don’t see any licensing issue with what you’re doing. You are liquidating personal assets. Any vehicle that has a title is considered as a vehicle under the dealer licensing laws in a state. Thanks for your question. Hope you get top dollar!

  32. I keep seeing “titled and registered” however in Virginia you are not forced to register a vehicle after taking a title into the DMV and having it put in your name. There is no law saying you have to register a vehicle you own if you aren’t going to have it on the road(there may be some county or city ordinances about them sitting in driveways unregistered but fine if covered up or in your garage). You can own a vehicle without having tags on it. You get insurance, then register when you want to drive it on the road but not for the purpose of reselling a vehicle you just bought. It would be stupid for someone to buy a car, have the title transferred, then insure and register it when the only thing they needed to do legally first was just transfer the title to themselves and paying taxes before selling it to someone else.

    • Just want to add that of course you would have to have the vehicle towed to your house if you didn’t insure and register it, and only allow the potential buyer to test drive it in your backyard, but however no law saying you have to register a vehicle when you transfer the title in your name, so why do you keep repeating that people have to register vehicles they get to resell, it is not true.

      • Tom It’s a matter of interpretation of the words. In my state registering a vehicle is changing the title ownership i.e. registering the vehicle with the state so there is a ownership string that be followed. The purchase of the license is called “tagging a vehicle”. The major cost is the title work which involves a fee, taxes and in some states personal property taxes. The tags for the vehicle are usually less than $50 unless you purchase a personalized tag.
        The license plates are in the name of the registered (titled) owner.

        There are probably hundreds of thousands of vehicles setting in barns, vacant land and in garages that do not have a current license plate. But they are titled (registered) with the state under the name of the “owner”.

        Using your example of a purchase of a vehicle without a license, but sorry as a buyer, a test drive in the field would not be enough for me.

  33. Hi Don,

    I have a question. I currently have a transportation business. I plan on liquidating about 10 of these vehicles. They were bought for a certain amount and have depreciated quite a bit. I am not flipping them or selling for a profit. Technically, I’m selling for a loss. Would I need to get a dealer license for this? Even if I am not in the “car sales” business. Simply selling off assets.


    • Joel
      You are selling assets not selling to make a profit. So you are not buying and selling as a business. I might recommend you consider selling your vehicles through a public auction. It would be easier and much faster. Just a thought.

  34. Thanks for the info. What I can’t figure out is at what point you’re considered a car flipper. I’m in California – you mentioned there is a 0 car tolerance. I bought a car last year from a private party, and now want to sell it, in order to upgrade to a nicer one. If I sell it, does that make me a flipper? Is there some amount of time (6 months, 12 months, 3 years, whatever) between buying and selling that would cause it to be considered flipping versus just a buy and sale transaction? Does making a profit play a role?

    • John
      I can understand. It can be confusing. If you are selling a personal car that you had no intentions of buying and then selling (flipping) for profit, there is no issue.
      The issue comes about when a person intentionally buys and sells cars for profit. The question is how does the state prove it? If you are buying and selling several cars a year (flipping) then you are open for an investigation by the state dealer licensing group. And they can find out. That’s it. Can they catch you?, is a question I get all the time from other folks. Sometimes they just say, they can’t catch you. I understand the intent of the question and comment. It means, I want to operate illegally and probably won’t get caught, right Don? As I say often… My old Daddy taught me that was the wrong way to approach life. And he showed me what happened when I got caught violating his rules. 🙂 Hope that clarifies it.
      In the example you gave there is no issue. A farmer might sell old ones and buy 5 or 6 new vehicles in a year. Is that illegal? His intent is not to make a profit. If he bought them new he didn’t make a profit

  35. I’m located in Ohio. I live in a township where it is legal to have a home based business. Currently I have a 3 car garage with plans to build a 6-8 car outbuilding. I would like to start buying and selling classic cars on a very small scale. Maybe 4-6 cars per year. Unfortunately i won’t have the facility to qualify for a dealers license even after buliding the outbuilding because I don’t want to have that much parking area on my property but I want to operate properly according to the laws. This will not be my full time job, just something I do because I enjoy working on classic cars and always get bored with them once I’ve finished fixing them. Is there any type of specialty car license that applies to this type of sale? I have zero interest in going to auctions or having a “used car lot”. I feel like I’m somewhat backed into a corner as a “flipper” just because I’m not trying to do this on a larger scale and make a career of it. Any help is appreciated!

    • In Ohio, the last time I checked, you can buy and sell up to 5 cars a year without a dealer license. 6 or more require a license. Please verify this, because state rules/laws change.
      You must register and pay all taxes and license fees for each of the vehicles. You can find the Ohio dealer licensing group telephone number at my website http://dealer-license-requirements.com. Call them to verify the number of 6 or more has not changed.

      YouKNOW there is no problem with operating your part-time business/hobby on your property? if so then the city/township has no regulations that you must conform.

      You’re good to go, as long as you remain within in the state limit. Oh, also check with the state: Is it per year or per 12 month period?

      Good Luck.

  36. How would it work if you’re selling online on a website like ebay? And you’re selling to other states? Still need a sign? I’m in Utah and I don’t know if I would need a dealer license for an “online” business. thanks.

    • Hi Tim
      We need to understand terms. A dealer does not sell online. The dealer advertises online. So whatever state the vehicle is located, then the business must be licensed in that state. The average buyer does not see a car online and then just buy it. They want to see it, touch it, drive it and negotiate. That is done at the dealer’s location. There is no such thing as an online dealer business.

      The only folks who will buy a vehicle without “seeing” it are collectors and even then they will usually fly to the location of the vehicle to view it. If they don’t do that then they will require an appraisal be done it by a professional appraisal company.


      • Well, as of now i have sold 2 small classic trailers on ebay and the customer never came in person. So it wouldn’t be a a “classic” dealership.

        • Tim
          The best way to answer your question and for anyone else reading these comments is to refer you to YOUR state’s licensing group. You can find the the telephone number on my website http://dealer-license-requirements.com. Your reply leaves too many questions, such as are these trailers considered collectibles? Are they titled in your state? Do they have to have a regular license plate or a collectable plate. And many more questions. Do not answer them here but go to your state and have them give you the answer about requiring a dealer license to sell them.
          Good luck

  37. Wow. Flippers are like drug dealers I geuss. You make it sound like these people are steeling something. Yes I’m sure there are the assholes who bondo a frame or what ever else. But I would think most of them are actually honest. They buy a car with a mechanical defect, let’s say a head gasket. They fix the problem themselves because they are an ASE master mechanic and they KNOW what they are doing. Then sell it. They bout the car at a fair price and sold it for a fair price. Labor is not free at any shop I have ever worked at. So I would think the same would go for buying, fixing and selling cars. Why can someone buy an antiq rocking chair restor it for a profit? Some antiques furniture goes for more then a $2500 car. And the vidio of the moron who says you can’t make a profit should go back to school. What you did is demonize what it really is. You said in one comment “flippers” don’t effect you. Lol yea and you do this because its the right thing to do. You are a clown. As long as the car being sold is safe, functional, and worth the asking price and all the DMV paperwork is accurate then its no way shape or form of a crime. Its only a crime to you and the government because you lose money. Its all money and you know it. You like to keep the little guy down. Don’t reply if all your going to say is “its the law”. Yea so isn’t heroin sales but that acualy kills people. Prioritys man. Think about it. So to sum it up, if buying a car off someone who can’t afford the fix and I fix the problems 100% correctly, then I feel I can sell it to put food on the table. And I’ll sleep like a baby. You are the problem with this country. Not the flipper.

    • Spongbob
      I am only giving facts so don’t shoot the messenger. The comparison to drug dealing is weird.
      I understand everything you’re upset about but the issue is… there are laws in every state to protect the consumer from the “flippers” who are not honest and rip off the consumer. We may not agree with a law and if we don’t want to follow it, we have to understand we put ourselves and our families in jeopardy. As one example here are the penalties for violating the dealer licensing laws in Florida. Florida allows the sale of 2 vehicles per 12 month period without having a license. Beyond that then the following law is applicable.

      Any person violating these licensing requirements is guilty of a second-degree misdemeanor, punishable by up to six months in jail and/or fine of $500. Such person will also be liable under civil law for violation of Florida’s Deceptive and Unfair Trade Practices Act, subject to fines of up to $5000 per violation, and may face a permanent injunction issued by a circuit court.


    • I live in fl and the max is 3 cars. What if me and 3 or 4 relatives buy 3 cars a year and sell them. As long as I don’t have more than 3 per year I’m good. So then you could just have your relative put the next 3 in their name. All I’m saying is I hate how the laws are usually focused on the little man who’s just trying to feed his family and not ripping ppl off with cars that have been sold and repoed and sold and repoed Over and over til the cars are finally just taken to a junk yard. I’d rather deal with an individual or “flipper” over a dealer any day. I hate fast talking, slick haired, crooked dealers.

      • Patrick
        Doing what you say will probably “hide” the flipping. But I do have to take issue with your wholesale take-down on dealers. The independent dealers I know started small with 3-5 cars and by treating customers right grew their businesses by

          repeat business

        . No business will survive by treating customers as you painted the picture of small dealers. I know probably 20 dealers who have been in business for 20+ years and they would have not survived by ripping people off. On the other side of the coin, I receive emails every month from individuals who have been ripped off by “flippers”. So there can be “bad guys” on both sides. We as buyers must make good decisions on purchasing but I’d rather trust a dealer who has been in business for 20 years than a stranger who advertises on Craigslist and wants to meet me in the Walmart parking lot. Don

  38. So why is there not a website to search by name and address to see if someone has a dealer license and a website to report those breaking the law. Why is there no enforcement efforts with all the regulations and laws being violated so openly? Why can’t someone call the police and report when a someone is flipping cars and have them arrested? Have consumers been completely abandoned by everyone?

    • Dina
      The enforcement of vehicle dealer licensing laws is usually within a state dealer licensing organization. They have investigators who respond to complaints from the public. So they have to receive complaints. They do not have the resources to go driving around to look. They do however browse Craigslist. In the consumer laws of states and federal, the police or FBI do not arrest people. The type of consumer law violated is investigated by the government entity responsible to enforce the rules. If they find violations, they can fine or in extreme cases bring criminal charges. The police are there to protect the community. Even when they arrest someone, they can only detain until the District Attorney decides to file charges.
      Anyway, you or others, that know of probably violations of dealer laws, have to report them, not to the police, but to the dealer licensing organization in the state who will

    • Jim A dealer does not pay sales tax on a vehicle purchase unless the dealership purchases it for internal business use, registers, titles it and puts permanent plates on it.
      Example would be the car used to take service customers to work or home – shuttle service.
      The temp plates that a dealer can purchase are for movement/demo driving of inventory vehicles. They are not intended for vehicles that are driven everyday for dealer use. Don

  39. Don
    I purchased a car from a guy, I paid cash when he handed me the title it’s from a used car dealer signed to the previous owner that this guy bought or traded for when I asked him about it he said just take it to the tag office they can change it over to you , I said no I don’t think so! Long story short he would not give me my money back so I go ask the tag office they say no way can I change title over and it was illegal for him to sell it like that. I have a copy of his add and text messages back and fourth to and from him until he will not reply back to me wanting my money back due to the fact He can’t legally sell the car . What should I do? I’m in Oklahoma

    • Paul
      Sorry about your situation. I hope you have a signed receipt for your purchase. If not then it’s your word against his.
      I would go back to the tag office and ask how do you report fraudulent sales. I would go to the dealer and ask him what he knows about the vehicle. If he doesn’t seem to want to help or pleads ignorance, then I would apologize but tell him you need to report him to the Oklahoma dealer licensing agency. Since his dealer’s name is on the title, he is to have a PERMANENT record of how he was involved it the transaction that caused him to be assigned the title. Another option is to approach the police and ask for help. Another option is to approach the District Attorney’s office in your town or county.
      Of all these I would approach the dealer first.
      Good luck. PLease let me know what happens. My email address and phone number is on the “Contact” page on this website.

  40. I get what you are saying however if I buy a car and have it registered and drive it for 3 months then sell it. Its okay because I am paying the registration tax. And its not for profit sometimes i make sometimes i lose.

    Car dealers have many special interest groups and lobbyist in D.C which is why there are many favorable regulations.

    • Joey Yes, what you are saying would be legal but if you exceed the number of vehicles a year and are doing it as a business, even part-time, than a license IS REQUIRED. There is another special interest group you didn’t mention that lobby for regulations. It’s the consumer protection groups. The regulations as I read them tend to favor the consumer in most states.

  41. Is it true that having a dealer’s license gives you the opportunity to “buy” dealer plates to drive around without paying any registration fees until the vehicle is sold?

    • Manuel Yes, a dealer may pay fees to receive dealer plates. The dealer plates are for limited use. They are temporarily placed on vehicles when they are being demo’ed to a potential purchaser. They are also used if the dealership needs to drive the vehicle to another location for business reasons such as to move it to a storage lot. A dealer NEVER pays registration fees on a vehicle so dealer plates don’t save on registration fees. The dealer plate may not be used for personal use.

    • Ryan… Usually any vehicle with a title falls under the guidelines of requiring a dealer license to buy and sell for profit. You can confirm this with your state’s DMV. One should ALWAYS check with the licensing organization in their state. DO NOT follow what forums say. Do not follow what I say because the “rules” can change. Check with the source of the rules. You state.

      Here’s a recent example of misinformed folks. I was was reading a forum where a participant stated one could buy/sell up to 20 vehicles a year in Kentucky without obtaining a license. I checked it in the Kentucky Dealer Licensing Manual on-line. It says: 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.


  42. Are all of your books sate specific and up to date? I live in Indiana and have been thinking about getting a dealer licence, but I know the laws have been changing a lot here.

    • Michael… Thanks for your interest in the e-books. Yes, they are current. I update them every year. Are they state specific? Yes, but let me explain. I have reviewed the 50 states and have explanations of the requirements so you can easily understand them so you can more easily satisfy them. The licensing agencies are not there to help you get a license. They provide no assistance.

      As an example here is one requirement; every state requires a bond to be purchased. Some states it is $10,000, some $25,000 and mine is $50,000. I explain what a bond is. Why it is required. Where to purchase it. What it costs and how to shop for the lowest price. Every state have different levels of requirements. States will not necessarily have all the requirements that I cover but every state’s requirement are covered in the e-books.

      Requirement specifics are set by laws, statutes and rules in individual licensing agencies. They can change at any time… and do. Arizona changed the rules this year for the maximum number of cars one can buy/sell without a license. This year Indiana did away with the wholesale dealer license. Because these detailed requirements change regularly, it would be impossible for me to keep the specific details (such as insurance and bond dollar requirements) up to date. Researching the requirements details of your state is something you will need to do. I show you how to find the requirements….. Don

  43. I recently purchased a vehicle on Craigslist. To make a long story short, the person I bought the car from never transferred the title. He did possess the blue title and an older copy of the DMV U130 form, the previous owner signed both in the correct areas.

    Where do I go from here?

  44. Just because you ran your family business into the ground and sold to Sonic, doesn’t mean you have the right to falsely and very illegally convince others that this absoltule misinterpretation of the law is anything BUT BS!!

    This is a scam. Most of these pieces of trash have licenses that have been revoked or have expired, or have a debt against them!!! Can’t EVER legally sell to the public as a wholesaler.

    • Allen…. I am not the Don Massey that sold his dealerships to Sonic. He had 16 Cadillac dealerships.. was well respected by all. If this was who you were referring to, it was a mischaracterization. Read about Mr. Massey here: http://www.clickondetroit.com/news/Rod-Meloni-Goodbye-To-A-Legend-Don-Massey/1791004

      Flipping cars for profit is ILLEGAL in every state. Some states allow 3 or 5 a year but after you reach the max, the law is being violated. Many states have ZERO as the number like my state of Colorado and an important one California. In the video I clearly state to check with the licensing department in your state to determine legality.

      I am a licensed wholesaler. And yes, your right, wholesalers cannot sell to the public. I have talked to many folks over the years who have fallen for the scams of getting a wholesale license to sell vehicles from Internet ads. If you’ll visit one of my website pages, http://dealer-license.com/indiana-dealer-license/, you’ll see I clearly explain the problems with not understanding the licensing regulations involving wholesale vs retail.

      I offer help and resources so people can explore the possibility of getting a legal license to sell cars. That’s all.

      One should not just begin flipping cars without researching the laws in their state.


  45. Hello! I just recently bought a car, and when I went to try to register it under my name; I realized it was flipped. Not only the car was flipped but also it stop working really fast. I live in Texas and I would like to know what is the best thing to do in this case! Thank you!

    • Annabel
      As far as the purchase and quality of the car, you have very little you can do. It is always “buyer beware” when purchasing anything. All your discussions with the seller were probably verbal, not written. So it becomes a, he said, I said, which is of no value. It’s your word against his. If you think there was something illegal in the titling, i.e. his name was not on the title, only the previous owner, then you can report that to your DMV. Sorry.

  46. Hi Don,

    Great info. I was looking into getting licensed to legally buy and resell cars in the state of California. After some research, it seems that for me to obtain this, I would have to have an office in a proper location with a sign and display area. I was just hoping to “flip” cars on the side and want to do it legally. Am I misinterpreting the info? Or is there a specific license for what I want to do?

    • Tony
      You’re research is right, you do have to have a business location but you don’t have to have what you might call a lot. I give you options in the manuals. Did you see the one option on my website or youtube video and the explanation of how to the interpret the state’s rules about a business location? There are other recommendations for satisfying the business location requirements without what you would call a “lot”.
      Here is link to YouTube Video.
      There is no specific license for what you want to do. You can do it with the standard dealer license.
      Hope this helps.

  47. I was looking at opposing a dealers license in IL, but I can’t seem to find anything in the states website in regards to class 8 trucks. (Semi trucks). I’m fairly certain I can’t use a regular plate on a class 8 truck, so any ideas on where to start for larger trucks. (I looked at “renting” a dealers license, but everything is geared toward cars).

    • John
      I called Springfield and asked your question. (217-782-7817) There is only one standard dealer plate and it can be used on ALL vehicles including a class 8 truck. I specifically asked can the dealer plate used on cars and trucks be used on on class 8 trucks. The person said yes, it can be used for moving the vehicle from one location to another or for a test drive by a potential buyer. Hope that helps.
      You do not want to get into “renting” a license. The concept is not valid in most states. One cannot “rent a driver’s license, a Dr’s license, a contractor’s license. I don’t even know what it means. Caution: If you find such a “deal” please call the above number to insure you’re not going to create problems for yourself.

  48. In Arizona, can an individual buy a used vehicle, at an auction, using a friends dealer license – then turn around and sell that vehicle,…at his own home?

    I know someone who is doing this and he pays people $100.00 to take pictures and advertise the vehicle on Craigslist. The phone number that is used is never his own. He gets the potential buyers to call a phone number and they have to leave a message. Then, if it sounds probable, he will call a particular person back and then schedule a time and day for that potential buyer to either meet him up at the corner or come by his home – to check out the vehicle he has for sale.

    He has made thousands and thousands of dollars from doing this.

    => Doesn’t he have to be registered (or whatever) with the Motor Vehicle Division – through his friends dealer license,…to be able to use that friends dealer license number?

    => Isn’t it against the law to sell vehicles from your home, in the state of Arizona when you use a dealer license to purchase vehicles? I read somewhere that one has to use a business facility to sell vehicles purchased with a dealers license???


    • Barbra

      I emailed the AZ Motor Vehicle Dealers Licensing Unit with this question: In Arizona, can an individual buy a used vehicle, at an auction, using a friends AZ dealer license – then turn around and sell that vehicle,…at his own home?

      Here is their answer: A dealer license may only be used by an owner or employee of the dealership. You may not use a friend’s license to go to the wholesale auto auction, sell a vehicle or use their dealership to complete paperwork.

      So the person you know is operating illegally. He would probably use the reasoning that they will never catch him. It’s the same excuse many people use who violate laws. He uses other people to post on Craigslist because he probably knows that the Enforcement Officers for the DMV regularly check auto ads for repeated contact info. So he knows it’s wrong what he is doing.


  49. Hi Don,
    I recently obtained my wholesale dealer’s license in CA and been wondering if I can purchase vehicles from private owners if I find them cheap enough and then re-sell them to other dealers or auctions for a profit, I know I can’t sell to private individuals, only to owners. what about buying vehicles from a public auction and then sprucing them up and selling them to other dealer auctions. Is there anything wrong with this?

    • Hi Sal
      Sure you can do that. Purchasing cars from individuals is one way a wholesale dealer acquires cars for auction sales and dealer sales. You can also purchase cars from dealers and do the same thing. as you kow, you cannot sell cars to individuals.

  50. Hi Don…scenario… Oregon man dies after collecting cars but not selling any of them for more than 60 years. Cars are all on his property which his wife has now inherited…cars and all. Wife now wants to sell them or junk them because most of them don’t run and all of them haven’t been registered for more than 10 years. She doesn’t have a dealer’s license and is 85 years old. If she sells more than 5 in a year is she considered a flipper?

  51. Sorry Don, but that is honestly one of the dumbest videos I’ve ever seen. If I buy a car, drive it for a month and decide to sell it, how the hell are you going to prove I was trying to “flip”anything?

    • Jim
      You’re not the first to say that! Other comments have gone ahead and attacked me, my wife and mother. Really! Why would someone do that? Usually because they are flipping multiple cars a month. Because you did not do this, I will leave your comment and answer it.
      You’re absolutely right if a person buys ONE car and resells it intentionally for profit as a business deal, how can anyone prove it. It can’t be done. If you buy and sell 4, or 5, or 6 in a year then you can be found. Here’s how. The DMV in your state has programs in the title registration computers that flag multiple title actions at the same address. Buying a car and not registering it in your name but putting the next buyers name on it is fraud. Why? Evasion of fee and sales taxes for your purchase, if applicable in your state. Also the “flipper” can’t get insurance on it, in case of an accident, there is no coverage.
      Another way flippers get caught is by a buyer who complains to state because of deal gone bad. Another way is the compliance officers in the dealer license organizations constantly review Craigslist for multiple entries over time by name and telephone or contact information.
      And lastly, to approach this legal issue with “How can they prove it” attitude, sorry Jim is wrong. If you buy and sell and car for personal reasons then that’s OK. If you violate the state statutes and buy and sell for profit ONLY, then a person can get into legal trouble.
      A vehicle is the most expensive thing we buy except for houses. The laws and restrictions were written to protect us as consumers and to control and protect dealers. Read other posts on here to see how “flippers” have seriously affected individuals financially.

  52. I had mistakenly bought a flipped car from a woman last week.It had false registration tags on it which I found out later while trying to change titles as she lied about it being smog-ed and registered. my bad. I accept paying the extra for my mistake. However, with more investigation on this woman I found someone else online who she also con-ed and from both his and my story, this woman does this a lot. She accidentally left papers in my car proving that she had bought the car from a lien sale ten days before she had sold it to me, though she claimed she had the car for a long time and used it for work. My question is how do I bust this lady? Will the dmv do anything about it? Can I go through law enforcement? This lady saw that I had just came from my job at the hospital, saw an early twenties girl that was gullible and in a bad place, and had no qualms about selling and unsafe car to me knowing I would have a long drive home. I don’t want her taking advantage of anyone else.

    • Cora… Sorry to hear about your situation. This woman and people like her are the reason that states have licensing requirements. The only thing I can recommend is to call the dealer licensing department in your state. They might be able to help. You can find the contact number on my website at: http://dealer-license-requirements.com Good luck. DON

  53. I bought a car from a guy back in 2013 on craigslist with a salvaged title he never registered the car in his name the title has an insurance companies name on it and I am having the hardest time registering it to get stickers haven’t really been able to drive it and I’m not sure what to do at this point. I would like to just get rid of it but can’t sell it without it being registered. I’m pretty sure this guy flipped this car. Any advice that would help me get the money back or selling it. I do know where the person is located but it’s been a year already how do I approach that

    • Andre… Sorry to hear about your problem. It’s one of the reasons to not buy from flippers and to not become a flipper. The only advice I can give you is contact your state’s dealer licensing group to see if they have any ideas applicable for your state. You can find the website and telephone number for your state here: http://dealer-license-requirements.com
      I would call them. Not spend a lot of time on the website. Good luck.

  54. I live in TN. We do have a statute which limits individual sells to no more than 5 per calendar year. TO me, that statute would not include an LLC, as it is not an individual, but rather comprised of members. Do you know if a vehicle title with a listed LLC business can sell a vehicle legally?

    • Kristen… Your logic is correct. A business that is selling a car that is listed as an asset in its tax records would not be required to have a dealer’s license. But one never knows how the state licensing agencies would interpret the sale so I recommend you contact the Tennessee licensing group. Don

  55. Hi Don,

    Thanks for sharing all this valuable knowledge. Can you kindly answer this below question that was asked by someone else.

    Respect to the business location (the commercial front required by law to get said license) is that required to be kept for ever to retain my license or if I am unable to pay the rent down the road will I be able to still sell cars.

    Asked by Clayton.

    • Clayton.. A business location is always required. If you have none, then your license would be invalid because there is no business location for the license. Don

  56. Don,

    I have a small business where I import niche market cars that are 25 yrs old for customers. I don’t actually own the cars i am just the middle man who helps set up the deal to purchase a car at japan auction then i do all shipping and customs. Do i need a dealers license?

  57. Hi Don. I own a non auto related business in Hawaii. I have four C-corp company owned vehicles. All of the vehicles are paid off and depreciated on our books and it is time for us to acquire new replacements. I wish to transfer ownership of one vehicle to an employee at no cost or exchange (more as a gift/bonus so my CPA did inform me I still have to pay tax for the fair market value which is fine with me). I would like to sell the other 3 vehicles to a private party for nothing more than low private party blue book which I will need to do to show that I did not liquidate a corporate asset for nothing. Would this be considered legal as we are not looking to profit and these vehicles are all 7 years old or older and bought for the purpose of business use (not for short term flipping or intent to profit). Hawaii has a 3 per year limit rule.

    Note: In case you are wondering why we don’t trade them in against our new purchases, we are located on one island and making purchases from a dealer on another island who is willing to pay for interisland shipping of the new purchases. But it’s not sensible or worth the trouble for us to ship our old vehicles to the other island for the purpose of trade in when we can accomplish the same by selling to a private party.)

    • Kay
      States usually have no issue with a business liquidating their vehicles. Go to my website http://dealer-license-requirements.com. It is a site that gives links to all the state government licensing groups. Click on the Hawaii link. It will take you to the Hawaii Department of Commerce and Consumer Affairs. There are telephone numbers for each island that you can call to get the answer to your question.

  58. I live in Wisconsin and am on the border of Minnesota and am interested in getting my license. I believe I would be buying and selling heavily in and to Minnesotans. will a Wisconsin license allow that. also in respect to the business location (the commercial front required by law to get said license) is that required to be kept for ever to retain my license or if I am unable to pay the rent down the road will I be able to still sell cars. I am disabled and am just trying to help my family get by. I would keep up on the bond and other requirements but being I only plan on selling 5 or 10 cars a year will not need the location(in my eyes at least). I understand the governments point as far as they just want their cut and make sure people don’t get screwed but its a little redicules to say you HAVE to have a location no matter how inexpencive you say it can be to just sell a couple cars a year to help your family. Times are tough all over and these laws are making it harder and harder to make a couple bucks. I don’t want to start a damn company I want to sell a few cars. why cant their be a license for the guy that wants to sell say less then 8 cars a year to make a buck and another for the guy that wants a full fledged car lot. Sorry I know don’t shoot the messenger lol. Thanks in advance Clayton

    • Clayton
      You are fortunate, Wisconsin allows an individual to buy and sell up to 5 vehicles per year of their own vehicles. What this means you have to register, license and pay all taxes and fees on the purchase of the vehicle you own as an individual. Why they clarify this is because there are “flippers” who never title the car in their name they are selling. They do this by asking the seller to not fill in the buyers name on the title…. “I’ll take care of that later”….. SURE. The they put the name of the person they sell it to on the title. That is completely illegal in every state because the “flipper” is not paying required, by law, fees and taxes.

      Here is the website page for Wisconsin that gives the right to sell 5 per year that YOU own.

      And the reason for the regulations on sales of vehicles is to protect the consumer. Why? It is something everyone must buy. It’s usually the most expensive thing they buy except for a home. With no regulation, there would be every Tom, Dick and Harry selling cars on corners. No written contracts. No investment by the seller in a brick and mortar business. No recourse for a buyer that gets cheated. And I could go on and on.

      So in Wisconsin you can sell a couple of cars a year, in fact 5 to help your family. BE CAREFUL! A car is not just a car. It’s a brand, model, age mechanical condition and mileage. To be successful you have to be savvy in all these areas. Watch this video… https://www.youtube.com/watch?v=mBvXM_S-t_8 He does a great job of explaining why it can be difficult.
      Good luck…

      Don’t forget that’s 5 per year. This year is almost half over… That would be 10 through the end of 2016.

  59. Hello Don,

    You are the real deal, with great advice and knowledge. EVERTHING I have read from Don here is spot on.

    I own a small retail dealership in Phoenix as a side business (fully licensed, bonded, insured). The curbing problem in Arizona is simply out of control. The legislature passed a new law last July with a $3,000 fine plus lost taxes for dealing without a license, but it is a joke how understaffed the Dealer Licensing Investigations Unit is in this state. Most of the curbers are both buying and selling their “inventory” off of Craigslist, but the trend that amazes me is how many dealer auction cars purchased at dealer auctions through a wholesale dealer license find their way to the retail market. I believe there are many third party MVD companies are illegally transferring title to private parties for them (Arizona farms out some MVD services to private business–I use a great, legitimate one myself for my dealership titlework).

    The “open” title ability (although it is technically illegal to leave a title open when selling privately in Arizona), and the total lack of enforcement of the time limit in which a private buyer has to register/title a car (I believe it is about 10 business days in this state) compounds this issue.

    Anyway, I would be interested in speaking with you sometime. Please mail me privately, if you have the time.

    Thanks Don,

    – Paul

    • Paul

      Thank you for the kind words. There are so many flippers and curbstoners who use all kind of excuses to justify their unethical and illegal business practices. “They are just the little guy trying to make a living.” They disregard that you are as a small retail operation also the little guy trying to make a living LEGALLY. And so many of them sell crap. I received so many comments from individuals who have been ripped off by buying on Craigslist. I don’t post those comments but do answer them directly and try to provide guidance.

      Many states do not have the resources to find the illegal operators. And I’ve had “flippers” say, “Well, they can’t catch you anyway”. So this person is saying, “I’ll sacrifice my personal integrity for money”. Anyway…. enough said.


  60. I recently bought a 2004 jeep from someone. Turns out, it’s a 2001, is that illegal to lie about the year?

    • Chelsea

      Thanks for your comment and sorry to hear about your problem.
      Yes, it is illegal for someone to lie in a business deal BUT it usually falls under civil law, not criminal law, because it’s a contract issue. And if it’s a “he said, she said” with nothing to prove the property was sold under false premises then it becomes impossible to prove.
      And a civil law violation must be handled through a lawsuit where you have to hire a lawyer.
      There MAY be some rule/law in your state to address your issue. The best thing to do is contact your state’s organization that licenses dealers and see if there is a rule/law about individuals lying about the vehicle (age) when they sell it.
      Here is another one of my websites where you can find the telephone number and website you need to contact. Don’t spend anytime on the website, it will not contain your answer. Call them. http://dealer-license-requirements.com

  61. You can sell legal car without a license upto a certain amount (8 cars is my state limit) before having to get a license…then when over the state regulatrd limit is when you will get penalized…..what he is talking is giberish

    • Jason
      Thanks for your comment. You’re right about your state but not all states have that high a limit. At the 4:00 – 4:12 minute time in the video, I say you must not believe everything you hear or read on the Internet (including me) and to educate yourself by contacting your state dealer licensing board. In my state it is zero. Georgia is zero. California clearly states if you buy and sell cars for profit, the seller must be licensed. Many states it is 3 to 4. So the dream to have a part time business flipping cars is not viable in most states because of the few cars that can be turned in 12 months.
      I have found sites and forums on the net which recommend floating or having an open title. That’s where the flipper does not put his name or info on the title but waits until he sells the vehicle and then puts the next buyers name on the title. Then the flipper does not have to pay any state taxes or fees and there is no paper trail that he owned the car. I always ask these guys what do you do about insurance. They usually say nothing. So they are driving a car still titled to the original seller with no insurance. I have have talked to original owners who start receiving letters about past due traffic fines or accident claims because the title is still in their name. The new buyer just didn’t register it.
      I’ve seen flippers who put a lower price on the title than what they sold it for because it helps to reduce the fees and taxes. All the tiles I have seen, clearly say that it is a felony to sign it with false information.
      Flippers who ARE following state guidelines usually never report the income of their side business. The sad part of this, I’ve talked with guys who did NOT KNOW the legal aspects of flipping cars, got caught, were fined by their state and then had to pay IRS penalties on unreported income. And I’ve had many flippers to tell me %%$^@%#^ %%#^%$ and my wife, too. I just say, why not explore the possibility of being licensed. It’s not as hard as you read about on the net.

  62. i have a huge problem. I purchased two cars from some people in the state of Oklahoma, who I have realized are flippers. They go to sales and auctions and get repo’s stuff like that. I do not believe they have a dealers licence. They were unable to locate the titles to these cars. They gave me notorized bills of sales, which due to new laws in Oklahoma do me no good to obtain titles. I did obtain from tag agency information on the previous owners, which I’m trying to find to help. They agreed to trade the two cars I got for two they had the titles for, which they are now giving me the silent treatment and run around. One of the cars has an active lien on it from Georgia! How do I report these guys and get them shut down. What do I do?

    • Annette
      Sorry for your problem. You can report them to the Oklahoma Motor Vehicle Division at (405) 521-3600. The issue you have with these “flippers” or “curbstoners” in most states is not a criminal issue but a business dispute between the two of you i.e. a civil issue requiring lawyers! The buying and selling of cars without a license can be a criminal issue. That will have to be determined by your state’s licensing agency when they investigate your complaint.

    • Seth
      Yes, eBay has a whole section dedicated to dealers on eBay Motors. The tool is called “Dealer Center”. On Craigslist, when you list a vehicle for sale you list is an an individual or dealer selling it. It’s interesting your dealership does not use these forms of selling on the Internet.

  63. So let me get this straight. I can buy a vehicle today, title and register it in GA, sell it next week, claim any net as income and Im good. But if I decide to sell my personally owned, legally registered property 5 times in a calandar year in GA, then I broke the law? That doesnt sound right to me. Private citizens must have the right to sell or otherwise do what they wish with their legally owned property without fear of retribution because “auto dealers” feel infringed upon. I can sell as many houses as I want in a year without a realtor or a realtors license as a private seller.. so the idea that a vehicle is your second largest investment and buyers need protection is bunk. I understand the desire to protect buyers, but what about my rights? To get a dealers license in GA is a hefty monetary investment that dooesnt begin to be offset by the $1k-$2k one might profit by selling that 5th vehicle in a calendar year. That just doesnt sound right to me. Im not trying to take advantage of anyone but Im mechanically inclined and always looking for a good deal I can make a few bucks on… and I can do that 4 times in a year completely legally, but the 5th time earns me a fine and jail time. This seem ludicrous.

    • Will
      I completely understand your frustration BUT if you are buying and selling vehicles for profit the law is clear in Georgia when a license is required. Please don’t shot the messenger!

  64. I recently (days ago) sold my truck to a buyer who fits the profile of a curbstoner. He listed it for sale in online classifieds the same day I sold it to him and he is making claims about it that I know to be false). Like an idiot, I didn’t make sure the Bill of Sale/Title was properly filled out when I made the sale. Assuming he finds a buyer, that sale would show me as the seller and I can see potential problems for me arising such as traffic violations, bad sell claims, etc. similar to others’ posts. How do you suggest I go about protecting myself and potential buyers?

    • Miles

      Sorry to hear about your situation. Anyone selling a car, as an individual, should check with their DMV to check the paperwork requirements. You have an option you can explore.
      It’s called a “Release of Liability” or “Notice of Transfer” form. It is a notice to the DMV you have sold a vehicle and this is to formally inform them you are longer liable for any issues after the sale. Some states require the form to be submitted upon a sale by an individual. Many do not but it may be an option you can exercise. Check with your DMV.


  65. We have the other end of the problem. We sold our car in Seattle in March 2014 before we moved to Japan (long term). The buyer never registered our car and we continue to receive tickets, fines, etc and even from collector’s agent. Every time we call the municipal court, they would clear our name but the problem continues. What can we do? Thanks.

    • Amy

      Sorry to hear about your problems. If you have friends in Washington I would ask them to contact the title division of the DMV and ask how does a owner remove his information from the title records. They can also call the vehicle licensing department and ask how to have your information removed from the license info on file in the DMV database. Of course your friends should explain why this needs to done and what paperwork is required from you. Hope this helps.


  66. Etse

    You cannot RENT a license. The companies that sell “get you a license” for a monthly fee are pairing you up with a licensed dealer.

    What this dealer will do for you depends on the dealer. I’ve seen some just put you on the auction list and that’s it. Other’s register you as a salesman. some add you to their LLC.

    First caution…. the dealer you pair up with MUST be in your state. Why? Because you cannot sell cars located in your state with another state’s license. North Carolina regulations frown on that. Everyone asks; then how do they sell on the Internet. Internet dealer car sales are made at the dealership. They don’t sell ON the Internet. They ADVERTISE on the Internet. They show and sell AT THE DEALERSHIP. If someone decides they want the car sight unseen from a distant location, the the paperwork is done AT THE DEALERSHIP and sent by overnight FEDEX. After signed documents and payment is received by the dealer, the vehicle is shipped to the buyer.

    Second…. If you have a dealer’s license or are on another’s license, you cannot sell cars from your residence. The transaction must take place at the dealer’s physical location.

    If you are legally licensed as a dealer in your state you can find cars for buyers. Dealers do this everyday. A broker ONLY finds cars and the sale is made by the dealer that negotiated the best deal with the broker. The buyer pays the broker a commission. I know of “brokers” that have dealer licenses but all they do is brokering.

    When you as a dealer or a registered rep buy a car at auction, the title is assigned to the dealer. Note: If one of these “dealers’ you sign up with gives you access to auction, you are not bidding in your name. You are bidding with the account set up by the dealer. So the auction will not do title transfer work to an individual. Title assignment and title transfer are two different title processes.

    Before you sign up for ANY dealer licensing program make sure you understand the laws and statutes IN YOUR STATE. Since you will be selling vehicles in your state, you must not be in violation of its statutes.

    Why not explore getting the license on your own? My resources show you how.


  67. If a person has a felony in the past, how much time must pass before they can get a dealers license? It was not fraud or vehicle related.

    • Anna

      Sorry, I can’t answer that. Every state has licensing rules for that situation. Contact your DMV dealer licensing group for an answer.


  68. Sir, do i need to have a dealer license of i buy car from you and sell it to Europe without bringing it back home?
    Its about classic car! And also if i sell the car directly to the buyer overseas from the previous owner how do I need dealership place of i don’t have any cars at my state?

    • Ivan

      Based on the short amount of info you provide, no you don’t need a dealer license. If you buy a car however as an individual, you must register and title it and pay fees and taxes. You need that title in your name to for US customs to approve the shipment. That takes some time, so I don’t know what you mean by not bringing it back home. You’ll have to have it on your personal auto insurance, also. They will usually want to see the vehicle. When you get the title, you can sell the car to a foreign buyer easily. If you have any problems it will be with the country you are exporting the auto into. Most countries have some restrictions on imported cars.

      If you are going to do several of these transactions a year, you need to contact your DMV to see if requires you to be licensed as a dealer. States require licensing for companies doing US transactions only but you need to check. Rules regarding vehicle dealers are modified or changed every year in every state.


  69. Great subject! Here in NJ , the state doesn’t take any actions at all. On Craigslist 90% of sales are title flipping. We , legal car dealers, pay for rent, insurance , bond and our taxes but seems they do better us since pay no expenses like we do .

    • Junior

      Thanks for comment. You can’t believe the number of negative comments I get that you are the bad guys along with the government. The “victim” complex in our society is so sad. They don’t realize the average dealer is the small independent lot working hard to make it everyday. Started by a person who never saw themselves as victims but worked to be successful.



  70. Just a comment. If someone has been a victim of a curbstoner and can’t get satisfaction from the seller, they should contact their local DMV to file a complaint and get help from their local investigations unit. It will probably require legwork by the buyer and fees.

  71. It’s such a catch 22. You have to be rich to get a dealers license really. That’s not free market economics. They want you to have a lot with a restroom and all of that before you get your license. They have to inspect the dealer lot as well first. Then you can apply for the license. So you have to jump through a bunch of hoops to get it but to get it you have to make money first but you can’t make money without the license to afford a lot. Catch 22.

    • Steamer Steve

      I have to kindly disagree with you. You’re seeing only roadblocks. In my ebooks I show examples of overcoming them. I show you that you don’t need a “lot”. You need to have a business locations that meets the requirements of your state. I know of a dealer whose “lot” is a commercial storage building for small businesses and contractors. It looks like the storage rooms you see for individuals except they are 20X40 with large roll doors on each end to drive vehicles into. They have shared restrooms. His parking spaces are inside the building. He pays $400 a month. You just sign a lease for your “lot” with the option, it is valid only after you receive approval for your license. You do not have to be “rich”. You don’t need any more money than you’d have to pay for your first car whether you have a license or not (flipping cars).

      How about co-locating? I have an acquaintance whose “lot” is with a local mechanic’s business.

      I have a wholesale license which I can operate in my home. This is an optional dealer license I explain in the eBooks.

      Good luck…


    • Rober

      You do not need a lot as you are envisioning it in your mind. Here’s what the State of Arizona requires for business location:

      “Established place of business must be a permanent enclosed building or structure, owned either in fee or leased, with sufficient space to display two or more vehicles of a kind and type that the dealer is licensed to sell. The established place of business must be devoted principally to the business of a dealer.

      A used motor vehicle dealer, public consignment auction dealer or automotive recycler may use a trailer as an office.

      A wholesale motor vehicle dealer may operate from a location zoned for residential use. Applicants should contact their local city or county office to ensure compliance with local zoning ordinances”

      You need to find a place that meets the requirements. It does say you need a lot. Example, couldn’t the spaces be inside. I see places for rent on Craigslist everyday that meet these requirements and they don’t look like “car lots”.


  72. Hey Don,

    I’d like to get a dealers license so I can “flip” cars, but here in Utah you need a designated area for advertising, a 24 square foot sign and $75,000 bond. Is there something I’m missing? I don’t want to make this a full time business, there’s enough bad dealers around here, I just want to buy cars cheap, fix them and resell them without any troubles.


    • Quinn

      Yes, you must have a business location. You can find an inexpensive one ($300-$400) a month on Craigslist. You can co-locate with another business such as a mechanic’s garage as long as you have your own business area (office) with an outside entrance. A 24 foot square sign is a 4X6 piece of plywood with your business name painted on it. My $50,000 bond costs me $375 a year.

      I go into all these choices and alternatives in the e-book. Most guys interpret the state statutes as “I must have a lot”. There is no mention of a car lot in the Utah rules. I show you how to think out of the box.

      I have an acquaintance who rents a commercial storage building that meets the definitions as you noted for Utah. How about parking for three cars? He parks them inside! There is no state that rules that vehicles must be parked on an outdoor “lot”. Thinking out of the box. Fulfill the requirements, don’t build a car dealership as you see in your mind’s eye.

      And I could go on and on and on… it’s all in the book(s).

      As I read the requirements in Utah, you can easily do what you want to do.

      Good Luck


  73. I’m asking on behalf of a friend who has sold about 100 cars each in Washington State, Arizona, and Michigan over the past many years, and now wants to clear up the mess he’s in (for illegally selling cars, not paying taxes, etc.). What does he need to do to settle these problems with the right authorities?

    • Seattle Rain

      I’m sorry I can’t give you the answers since it’s in 3 states. I would find a good tax attorney for advice. Taxes would be my primary concern.

      People reading this post can see how “flipping cars” is a business with license with tax consequences.


    • Hey… Roger!

      It’s me THE Don Massey but not THAT Don Massey! You’re funny, Roger. For others reading this…. Don Massey owned several Cadillac stores around the country. He was headquartered in Plymouth, MI. He built stores all over the country. At the end of the last century his annual sales were almost a billion dollars. He died at 83 in 2011. He was fondly called, “Mr Cadillac”.

      So that’s it.

      Don Massey

  74. I would like to get in the business of flipping cars legally. I heard that rather than getting a dealer license, you could register as a agent of a dealer. Could you explain how that works? Are there any pitfalls to becoming an agent instead of getting a full blown dealer license?

    • Ed

      There is no such thing an “agent” of a dealer. Go into any dealer and ask to be an agent for them. No, please don’t. Dealer’s have owners and employees. No one “agents” for them. A sales person is as close as you’ll get to being an agent for a dealer.

      There is so much mis-information on the Internet about selling cars, agents, flipping cars, renting a license. You have mis-informed folks on forums, chat groups and on Ask.com, Yahoo questions etc etc just adding to the “noise”.

      Read all the pages on this site to see some of that mis-information and how it affected folks.

      There is no half-blown license to buy and sell cars. If you want to sell cars to the public you must be licensed in YOUR state, not another state 500 miles away. You can’t be an agent. No dealer would jeopardize his license to put an inexperienced person on his license. Plus it would take approval by the state, insurances and bonds would all have be changed. When a person is on a license they are the OWNER(s) of the license and the business and liable for all.

      Now…. is it an impossible thing to obtain a license? No, it is possible, with guidance, to obtain a license with the minimum requirements. And that’s what my eBooks are about. Learn from a licensed dealer, not from Ask.com or someone “selling” you a several hundred dollar package or monthly fee.

      There are guys who have invested in my resources and got their licenses (see testimonials) and to be honest, most say, no way. So are you a risk taker or curious? They’re $27 and you get FREE consulting. Why FREE, read the FREE consulting page.

      Good luck in your search.


  75. I bought a truck a truck from a flipper, they covered up the frame with bando and painted it so the buyer won’t see that it is completely rusted. Now he wont take it back, what can I do about? This is in Illinois.

    • Ruben

      There is not a lot you can do about the truck or getting your money back. When anyone buys a vehicle it is sold and bought as-is. That’s why it’s important to have a vehicle checked before purchase or buy from a business or someone you trust.

      If you’re for sure this person is a flipper you can report him to the State of Illinois dealer licensing in Springfield at 217-782-7817.


  76. So I’m confused is buying and selling excessive amounts of used cars throughout the calendar year with the intentions of making large tax free profits illegal?

    • Dave

      If you are selling cars for profit then you are operating a business. Your business must meet the statutes for your business in your state. As a business you are to be licensed in your state, county and city. And as with any business you are responsible for reporting income to the IRS and paying applicable taxes.

      Let me put your question in a different format. “So I’m confused is buying and selling houses throughout the calendar year with the intentions of making large tax free profits illegal”?

  77. At the end of the year do you have to report the profit you made to the IRS then pay taxes on all of it or do you just have to change the title over?

    • Skyler

      I don’t quite understand your question. You buy a car and sell it for profit, then you owe the IRS taxes. You buy a car and don’t sell it, then you owe no taxes. A part of the selling process is signing the title over to the new owner.


  78. I just bought a used car from a private seller and we realized after the fact that it was flipped. The owner(of 3 weeks) lied about everything. You mentioned Georgia’s statute and South Carolina laws concerning this crime, could you help me find if Utah has a similar law or statute? We are trying to figure out what to do. Thank you

    • Shellie
      Without knowing all the details I can only recommend you contact the Utah Motor Vehicle Enforcement Commission and file a complaint. Their telephone number is 801-297-2600.
      Sorry to hear about your problem. Good luck in getting it resolved.

  79. Hi Don, I am based in north VA and I am intending to start this kind of business. I thought about getting a dealership license sinec I look to my stuff to be legal all times. the only thing that bothers me in the equation is the BOND.. I understand it as to freez 25,000 for 3 years. with this amount of money I can sell and buy lots of vechiles in three years. the other thing is to pay for the rent of you intended location for at least 3 to 4 months before have your license… this is along time to get into bsuiness. is there any kind of tools to expediate this?

    Thanks for the information presnted in your add here.. it was really helpful..

  80. Please help me out. My friend sold her used jeep with a blown head to a young girl who said her dad was going to fix the car the head was not a problem. A couple weeks later she got court paper some guy is claiming she sold him the car. He wants the money back he claimed to have paid for the car. Arizona does not require information on the buyer, just the registered owner. The girl told the man she was my friends daughter and was selling the car on her behalf. MVD issued a notarized title with the purchasers name blank and the selling price blank. three days later the car was sold and the notarized title and bill of sale had all the blanks filled in. Please help. She just wants this guy to go away. He was scammed but not by her.
    Thank you.

    • Lynn

      The back of the Arizona title is to filled by the SELLER to transfer ownership. There IS a buyer’s section and a seller’s section both to be filled put by the SELLER. If your friend did not put the name and address of the young girl she sold it to then SHE created the opportunity for the “flipper” to sell the car without registering it. I’m sorry I don’t have any advice except for talk to the DMV. Bases on what you’re saying, your friend did not complete the transaction according to your state regulations and that’s why the guy thinks your friend sold him the car.


    • Car Flipping Guy

      If the intent of buying the car was to resell the car at a profit then the buyer is in the business of buying and selling cars for profit which requires a license.


  81. I have been a victim of having a vehicle sold to me that was not in their name. It was advertised as clean title and once funds were sent (from Europe, my home) and I received a copy of the title it showed a different name. They purchased the vehicle in 07 it’s now 2013. The shipping company will not ship the vehicle as laws state for customs that it must be in the sellers name . I doubt they will change the title or refund me. Help! Who do I go to? I have names addresses and phone numbers and a Facebook contact for one of them. Advice appreciated

  82. Don,

    I’ve been thinking of dealing cars in my home state, Tennessee. I’ve read the by-laws about doing so and you even mention the “5 car” mandate. What I’ve read is that if I go beyond the 5 car limit, that I have to have a lot that fits so many cars. Of course I want to get my license before I proceed, but is there anyway I can forgo having to pay for a lease on a lot? My hope was to sell 4 to 5 cars a month and use,for the most part, the auction as a resource. I simply want to sell them at a wholesale price and with an “it is what it is” mentality. Any advice?


    • John

      Thanks for your question. If you review the requirements for a license in your state, you’ll find it does not say you have to a “lot”. It states requirements for your business location but think out of the box. Find a cheap location that meets the requirements, not what you think a car lot should look like. I would consider a co-location with another business. I have a friend who is co-located with a garage and a barber shop! It’s a business location that meets the requirements of the Colorado dealer licensing board which are much like Tennessee’s. Not beautiful but it works.

      I know of another dealer located in a commercial storage unit location. The difference is, the doors are garage doors, a 20×40 interior space and public restrooms.

      Again, search for places that meet the requirements, not your preconceived notion of a car lot.

      I cover this and more in my resources.


  83. Have you heard about the company Dealer Licensing Consulting? They are telling me that they charge me a monthly rate, which will allow me to buy and sell vehicles under their name, and then they 1099 me at year end… Is this legal?

    P.S. This is great info!

    • Nate

      It is legal when applied according to the laws in your state. Let me use my state as an example to decide whether this would be an option I would consider. Note this is called a “Shared dealer’s License Program”. I would NOT have a license. I am on the LLC and probably would be issued a 1099.

      The problem is NOT what they say is OK but what YOUR state says about the program. Pass it by your dealer licensing organization.

      As an example this program could put me in an illegal position with my state if I was not aware of the rules of the dealer licensing board in Colorado.

      Yes, I could go to auctions and purchase. Because I would be registered under the dealer license in the program. This is not a state or federal concern. This is a RULE that ALL auctions have. Why? Because they cannot sell to the public. Why? Because they don’t have a dealer licenses to sell to the public. So THEY, the auctions, require the DEALER license to screen out the public.

      So now I can go to the auction but…. in Colorado I can’t sell them under my name. I can’t sell them from my home. The cars I purchase would be assigned to the dealer in the program. I would have to keep the vehicle at the dealership and show it there and the actual transaction would have to take place at the dealership.

      So please CHECK with your state licensing organization before entering into any of these dealer programs.



      • Here is some info don u are a dealer so of course. U are against flip cars cause u want to sell your way to get legal here is thing u pretty much have to be rich to get that dealer lice people sell cars to feed their familys hints how many ppl flip and dmv dont bother them so don leave the poor guys alone stop make them think they are horrible people they just try to make cash to live

        • Jack… I completely understand your frustration but don’t “kill the messenger”. It is what it is and has nothing to do with me. The laws in each state are what they are. I am a wholesale dealer so “flippers” don’t affect my business. I can only buy/sell between dealers. So I have no personal interest in stopping unlimited flipping. I just inform and help folks get their license if they choose to do that. Nothing more, nothing less. Don

  84. This year I have sold 5 vehicles. Recently I titled 2 one I did not get tags for, because it was intended to be a gift for my niece. She did not like the car so I sold it. But are you saying if I purchased a car and title it and pay the sales tax, the Motor Vehicle Board can’t say I am trying to buy and sell cars? I don’t buy and sell cars I just have sold a total of 5 cars this year to downsize. But thats legal?

    • Let me say it simply… If a person is buying and reselling vehicles for the purpose of making a profit, every state requires that person to be licensed as a dealer.

      That’s it. Nothing more. It’s easy to understand. A person knows why they are buying and selling cars. If it’s to make a profit then it requires licensing.

      • I believe you are wrong, good sir. Curbstoning is when a DEALER poses as a private seller to sell his car. That is so a DEALER can avoid having to comply with the same regulations dealers are upheld to. I have yet to find where our laws say we are limited to buy and sell 3 to 6 cars. Can you explain?

        • Ahed… Yes, it is illegal for a licensed dealer to sell as an individual or curbstone. There are places on the web where a curbstoner is defined as a dealer. It is not the primary definition because a dealer does not want to take a chance on losing a license by selling off lot. The majority of curbstoners are not dealers. Here is a website dealing with curbstoning. http://curbstoning.com. You’ll see the definition of both in the videos.

          Here is one definition of curbstoning from the California DMV.
          Curbstoning is the repeated, unlicensed “flipping” of used cars for profit.
          Curbstoners are people who actively and regularly buy and sell vehicles without a license, proper permits or a legally established place of business and who, many times, represent themselves as private sellers in order to attract buyers.

          Here is the language of a bill by by the Tennessee legislature and signed by the governor this year.

          This bill defines curbstoning as when a person who is not licensed as a motor vehicle dealer:

          (1) Sells, offers for sale, advertises for sale, or solicits the sale of a motor vehicle without a properly endorsed certificate of title; or

          (2) Sells, offers for sale, advertises for sale, or solicits the sale of more than five motor vehicles in any 12-month period when the motor vehicles are titled in the seller’s name.

          Here is a YouTube video by the California DMV about curbstoning. https://youtu.be/-yXHBY9s6FY

          And here is what the New Jersey Motor Vehicle Commission says, where I believe you located because of your email address.

          If you are engaged in the business of buying, selling or dealing in motor vehicles, you must be licensed.

          I can find nothing in the New Jersey website allowing one to buy and sell any number of cars if they are doing it to make money, i.e. a business. The way to really find out is contact the Motor Vehicle Commission in Trenton and ASK. Then there will be no question. ALWAYS GO TO THE REGULATOR TO GET THE CORRECT ANSWERS.

          NOTE: there states that set the number one can buy and sell without a license. Example: Arizona – 7, Alabama – 4. States can change these numbers at anytime through rule changes or legislative changes. That’s why a person MUST contact the licensing group in their state to get the current answer. Answers on websites and forums can be years old and not current.

          Thanks for your comments and questions.


  85. Could you provide more info on Flipping Cars – It’s Illegal in every state in conjunction with cars for sale by private owner? I don’t feel it is completely accurate.

    • Of course it’s not illegal for individuals to sell their private cars. That is a private transaction.

      Flipping cars is where an individual specifically purchases a vehicle for resale. That is a business transaction and is covered under the laws in a state regulating vehicle sales to the public. It is illegal to buy and sell cars for profit without a dealer license. Period.

      • Don. Thank you for posting your opinions and experience. You are, however, misleading people when you state that flipping cars is illegal in every state. Most states have preserved (rather than taken away) a person’s legal right to buy and sell a limited number of cars every year whether that is done for profit, for loss, or for any other reason – they’re free to do so which means it’s not illegal. Although I haven’t done an exhaustive legal analysis, it’s likely that in those states that preserves the peoples’ legal right to buy and sell cars, no “business license” is required. One does not necessarily need a “business license” to do business. States encourage people to get a business license for purposes of revenue to the state and to track use of assumed names for tax and regulatory purposes.

        My viewpoint on licensing in general and auto dealer licensing in particular is that it increases prices of the goods (cars) in the economy and drives out competition. People who either can’t afford to get a dealer license or simply don’t want to spend their life “running a business” are forced out of business or into the shadows. The people who get licensed receive a qualified immunity because they’re now in business with the licensing people at the state. The state has a vested interest in keeping licensed dealers in business more than doing what’s best for the consumer. Requiring licensing for auto dealers forced up prices and deprives people of freedom of contract to decide where to spend their money and who to patronize.

        Also, for purposed of clarification, you stated that a bond is a form of insurance. It is not. Bonds are often sold by insurance companies but they are not a form of insurance but rather a contract of assurance.

        • Chris…..Thanks for your comments. Yes, you are correct that some states allow a certain number a year. But many folks don’t know that many states allow zero. That’s why I comment in the video to check with your state’s DMV. Either way, it doesn’t change the fact that one must understand and make a decision whether to follow the law or not.

          I can’t dismiss your viewpoint on the licensing. As an example a young mechanic here in Colorado who has a successful repair business investigated getting a dealer license. He has a small successful business of ten years. He makes a living but also has a family and three young children. One of the requirements for obtaining a license in Colorado is a personal net worth of $100,000. He cannot qualify. So he is unable to add another profit center to his repair shop. Repair AND sell vehicles.

          I discussed this with the dealer licensing board director. I told him this makes no sense because he will incorporate his dealer business. The reason for this is to protect his personal assets if his business fails, so if he has no assets or $500,000 in assets, it doesn’t mean anything to supporting the business. Here is a small successful business who cannot add sales to his business. I said this was wrong. He did not agree or disagree with me. He said the rule was made by the board and I could write a letter and he would present it to the board for review. I said no thanks.
          And thanks for the clarification of the meaning of a bond.

  86. I purchased a car off of craigslist for $1000.00. When I took the title to the BMV, I could not register it because it was under the company name where my signature had to go. Tried to contact the people and the lady offered to take the title back and fix it. She told me to meet her in the back of a hotel. My husband said no, because if she takes the title, I wouldn’t have a legal leg to stand on and I would never hear back from them. as it stands, I still Have yet to hear back from these people. Now what????

    • Lisa

      If I were you, I would consider asking for your money in exchange for the car and the title. Buying cars on Craigslist from individuals can be very problematic as you have found out. I’m sorry for your situation. I wish I had an easy answer.


  87. bought a car back in sept 2012 and i mailed off the title to DMV so I can register it in my name and my daughters name and we have been waiting for 10 months for some kind of information about what fees we will have to pay. It comes to this: This car was flipped, the guy we bought it from made it sound like it was his, and he said he paid for reregistration and smog. Well, I went to DMV yesterday and DMV couldn’t release any info on the car,because on the car the registration’s hasn’t been paid since 2011, thru 2013 and the guy told me that the car was smogged and it wasn’t. I just got the paper work today June 29, 2013. Where do I go from here?

    Debbie Richardson

    • Debbie

      What do you mean, you the paperwork today? What paperwork?

      So sorry to hear about your problem with a flipper. You are completely at the mercy of the DMV. I would go back to the DMV and escalate your issue to a supervisor. If you’re not happy with the answer he/she gives you then ask to speak to their superior. Just keep moving up through the ranks until you find the answer.

      As difficult as it may be, DO NOT get mad or verbally attack the each level of the bureaucrats. They only know how to talk in their language. Make a point that because of this flipper you have a vehicle that you can’t drive and just need it. Can they help. That’s all you want.

      If that gets nowhere ask them who or what government organization can you go to for help. This sounds like a violation of laws by the flipper. I might go to your local District Attorney’s office if the DMV is of no help.

      Again sorry, and good luck.


  88. Hey there, You’ve performed an incredible job. I will definitely digg it and in my view recommend to my friends. I am confident they will be benefited from this site.

    • Thanks for nice comment. Trying to help all understand the various issues about getting a dealer license.

    • Yogi
      There is only one alternative. Obtain a dealer license so you’ll not have to worry about buying and selling vehicles illegally. Plus you’ll have access to true wholesale priced vehicles at dealer only auctions. The best to you in your endeavors.

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