you buy a car for 5000 dollars lat it rest in your driveway
keeping in mind you got the car from a very low cost but good quality source
then you put an ad in the paper for a car that sells at 7000 dollars
someone comes to buy it you made 2000 dollors proffit
you do the same thing with another car
is this possible?
2007-01-31 12:03:34 · 7 answers · asked by Anonymous in Cars & Transportation ➔ Buying & Selling
It is called being a vehicle wholesale dealer.
In California - it requires a dealer license over so many cars per year or payment of the sales tax on the 5k you paid for the car which means you would have to pay for a smog certificate too. If you get a wholesale license, you have to carry a bond too. If you sell to consumers as a dealer you have to have the cars smogged before you can show them and would have to pay taxes on the profit you make. You would be collecting and then paying the sales tax and license fees.
I have wholesaled cars for years. In the 80s there was lots of money in it. Now, with employee pricing gimmicks from ford and chevy, there is almost no market. When prices for brand new cars were less than the used car prices people bought new and had to get rid of the used one they were driving. But, there was no profit in the new car deal so dealers paid less for the used car trade ins. Make sense? Now the market is FLOODED with used cars that are worth way less than the Blue Book value. I just bought a 99 Dodge that booked for over 10K for $4400...
2007-01-31 14:34:42 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Certainly it is possible. And in most if not all states you can sell between 3 and 6 cars a year without having a dealer license. I suggest staying clear of "analmsta"'s answer, that is called skipping title and you can get in a lot of trouble that way. You have to pay sales tax when you title a car. That does not mean you have to register it, or insure it. Just get a title to sign over to the next buyer of the car. The legal way to get around the sales tax thing is to get dealer license. It cost money and some time, but if you plan on selling more than your states maximum cars, then saving the sales tax may be worth the trouble.
2007-02-01 04:24:39 · answer #2 · answered by just me 6 · 0⤊ 0⤋
Yes
I do it every so often with classic muscle cars
I once bought a car for $600.. just washed/vacuumed it and turned around and sold it for $1000 a few weeks after I purchased it
2007-01-31 12:06:48 · answer #3 · answered by Mopar Muscle Gal 7 · 0⤊ 1⤋
Sure why not? Try to buy it with an open title (no name in the buyers section in the buyers info section) This will save you from having to title it in your name and paying sales tax etc.
2007-01-31 12:58:53 · answer #4 · answered by Boston Mark 5 · 0⤊ 1⤋
Kinda like that.
Most the time you have to 'legally' pay taxes on the car and register it into your name. Doing both of those would make it really legal.
Check local laws for more info.
KC
2007-01-31 12:07:25 · answer #5 · answered by ksib 3 · 0⤊ 1⤋
It's possible, but since cars generally do not appreciate in value like real estate, it is tougher to do.
2007-01-31 12:38:59 · answer #6 · answered by eaglefox200 5 · 0⤊ 1⤋
yes, but unless you really know WTF youre doing, you prob wont make much.
2007-01-31 12:08:53 · answer #7 · answered by Kyle M 6 · 0⤊ 1⤋