Buying and selling Cars for profit

[Mr 5 0]

You need to check state DMV law.

In my state, you can buy and sell five cars per year without a dealer license, after that you need a license and not only is it way expensive but you must have an established business, a shop, all kinds of stuff.

To sell privately, you need to buy low and sell high of course. Trick there is to find a car that needs a lot of polish and cleaning but little body or mechanical work.

Generally, anyone buying a used car has a right to expect it to be in good running condition. The fact that you had to replace a fuel pump, two tires, put a new muffler on it and replace the water pump means nothing to the buyer and you can't expect to get that kind of expense back, so you want to avoid putting much into the car you hope to sell.

It can be a great business - my best friend owns a very profitable used car lot and auto shop - but risky for a guy trying to make a buck on the side. Easy to get burned if you buy a clunker. Don't register anything and just pass title as Rick said to avoid having to buy tags and insurance. Test rides will be tricky that way but it's the only feasible way to do it.

Good luck.