wholesale license to flip exotics?

Anyone know how to flip exotics just for yourself without getting a dealer license?

 

Have been looking into this as I like to get in and out of cars and always try to buy at wholesale, but would be nice to be able to buy at wholesale 100% of the time and avoid high taxes etc.

 

Anyone here doing this or can give me some knowledge?

The ONLY way I know of to buy and drive cars without paying taxes and licensing is to have a dealer license. This varies by state but... where I am it is the only way.

 

You may be able to approach a small dealer, or a dealer going out of business and pay him to become a sales person and get a plate. Not sure how insurance works, but you would have to cover his cost and liability and make it worth while. There are also 'curbing' or 'curb stoning laws' (at least in this state) that you have to be careful of.

 

How often do you buy and sell cars? How much would you save in tax, title and license? If you could find a guy and pay him $5k a year for a plate would he go for it? Would that be worth it for you and/or him?

 

I talked to a dealer a bit ago but didn't get specific. He brokers cars after selling his lot and getting mostly out of the business. He will maintain his dealers license and flip a well bought car but his main business is buying cars that a client wants. He charges $500-1000 to buy a car at auction for a client. This is the kind of guy that may go for a deal to become a partner and let you use a dealer plate.

I've looked into this fairly seriously and really the only way to do it is to have a dealer buy/bid the cars for you and keep the title open while you resell, but then again you have to make it worth their wild, then pay the guy at manheim to actually check out the car for you, take paint readings etc. (500 bucks), manheim fees are 350-500 bucks, and then you've got shipping to you 800-1000 depending on location and more if you go enclosed.

 

And lets not forget that Manhiem doesn't accept payments or do financing for anyone but its biggest dealers so you'll be paying cash, unless you convince the dealer your using to finance you but thats legally a risky proposition because you could bail and leave them legally holding the bag on the car.

 

So yea, there really isn't any easy way around not having a dealers license.

I've looked into this fairly seriously and really the only way to do it is to have a dealer buy/bid the cars for you and keep the title open while you resell, but then again you have to make it worth their wild, then pay the guy at manheim to actually check out the car for you, take paint readings etc. (500 bucks), manheim fees are 350-500 bucks, and then you've got shipping to you 800-1000 depending on location and more if you go enclosed.

 

And lets not forget that Manhiem doesn't accept payments or do financing for anyone but its biggest dealers so you'll be paying cash, unless you convince the dealer your using to finance you but thats legally a risky proposition because you could bail and leave them legally holding the bag on the car.

 

So yea, there really isn't any easy way around not having a dealers license.

 

In some states it is called curbstoning and is illegal. You could pay for a plate, as was mentioned earlier, but be careful. Remember, Hoffa killed people, did all sorts of illegal shit and the only thing he got busted for was tax evasion. You could back a small dealership and get a plate from them. Most states have started to buckle down on that though too and are now auditing plates and whom they are issued to. If you are a partner, on the books as one, you can get a plate from most states. You would have to then park the money for the car in house and the owner of the dealership would have your title in his hands. There can be some risk there too if he were to go belly up or get sued.

 

You could start your own place. Takes some coin. Insurance, surety bond, dirt and building, phone line, pre licensing classes, license fee, signage etc... The start up costs are not huge, but they might make just paying the taxes on the cars seem more palatable.

How hard is it to get a dealers license and just go to manhiem and buy all you want?

You can always save taxes by titling the car in montana, oregon. No sales tax there.

 

Just don't get busted driving around in other states for more than 14 days.

 

All this stuff isn't worth it. If you can afford to flip exotic car, you can afford the 10% tax.

In some states it is called curbstoning and is illegal. You could pay for a plate, as was mentioned earlier, but be careful. Remember, Hoffa killed people, did all sorts of illegal shit and the only thing he got busted for was tax evasion. You could back a small dealership and get a plate from them. Most states have started to buckle down on that though too and are now auditing plates and whom they are issued to. If you are a partner, on the books as one, you can get a plate from most states. You would have to then park the money for the car in house and the owner of the dealership would have your title in his hands. There can be some risk there too if he were to go belly up or get sued.

 

You could start your own place. Takes some coin. Insurance, surety bond, dirt and building, phone line, pre licensing classes, license fee, signage etc... The start up costs are not huge, but they might make just paying the taxes on the cars seem more palatable.

 

Good info to point out as well. What it came down to for me was exactly what you said - if you're gonna do it - you just need to pony up for your own license and all the insurance/bonding and facility expenses to go along with it.

You can always save taxes by titling the car in montana, oregon. No sales tax there.

 

Just don't get busted driving around in other states for more than 14 days.

 

That's where you have to have your Montana LLC owned by your New Mexico LLC. In New Mexico, you don't have to list the owners of the LLC so it's basically anonymous and 'supposedly' you cannot be tracked by the DMV and such to collect 'use taxes' for the state you are in.

If it's NJ forget it. They have the whole dam system locked down. There's not a single g_dam loop hole in the whole system.