Dealers License anybody have one?

[Frank The Tank]

I'm on my 4th purchase and 3rd sale of 2013. My friend thinks I could save a lot of money in taxes if I'm going to keep this up (I plan to) I bid on a truck today (silent repo bid)

Should I get a dealers license and dealers plates and ins? Will it really save me money if I don't buy and trade more than 10 vehicles a year.

Just wanted some information, opinions and input from you all. Thank you.

 

[adsm08]

I know in PA it is expensive to get one.

One guy I work with runs a used car lot on the side, he said that by the time he got the paper's signed, and the applications filed, and had the rabbi bless the facility that he had to have he was into it for about 20 grand.

 

[wildbill23c]

It's not worth the money IMO. Yeah probably buying and selling vehicles like that you should have one, but there goes all your profits trying to keep your licenses and insurance current, you'll be losing more money than you bring in trying to do the license and insurance route.

 

[Frank The Tank]

I've been researching the laws.... They aren't there to help you from what I can see. It looks like they are as strict on the requirements of average joes as they are the 50 acre super lots.

 

[kunar]

i know that in ohio they dont really keep track of how many cars youve bought/sold. iirc the limit here is 6, but they only investigate if somebody reports you or you go to the same title bureau every other week and they start to recognize you. i highly doubt theres any way a dealers license is gonna save you money.

 

[wildbill23c]

The only thing a dealers license will get you is into some vehicle auctions really, other than that there's absolutely no money for you in getting one.

 

[RangerSVT]

I get around it by transferring the tag to the newly purchased vehicle, rather than getting a new plate. If you make a purchase for the sole purpose to flip and don't intend to drive it, then I don't even title it in my name, I just hand the title to the new owner from the previous owner. I know ky you have to pay the taxes of the vehicle for registration each year, and the tag is transferable, I'd look into transferring the tag of a sold vehicle to a newly purchased one, providing you start hanging onto the plates


SVT

 

[shane96ranger]

In Utah the limit is 5 per year. It is also a big ordeal to get one. The cost is about 125 dollars per year for used cars. I know you have to do an FBI fingerprint verification for each person using the license as well. The plates are pretty cheap.


We looked into this a couple of years ago for my Buddy's transmission shop. He had 7 cars in one year that he didn't get paid on, and he assumed the titles. He wound up using an agency to flip them instead because of the hassle.

 

[straycat]

I thought about doing this a few years back with a good friend of mine. after thoroughly checking into everything the expense and the headaches were not worth the trouble for us unless you are gong to do it full time and have some deep pockets to pull out that money.

 

[shane96ranger]

I thought about doing this a few years back with a good friend of mine. after thoroughly checking into everything the expense and the headaches were not worth the trouble for us unless you are gong to do it full time and have some deep pockets to pull out that money.

Pretty much spot on Stray. Utah law also says you have to utilize a lot, and specifically states that you can't use your driveway.

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