Can you sell a few cars with just a dealer's license?

Demetrius Coaster: The problem is, qualifying to be a dealer is expensive. It usually requires garage liability insurance and a legit car lot. In my state, you have to have a large sign and a land line phone. You have to swear under oath you meet all these requirements. And send in a picture of your sign.All of the above is usually just not worth it to get in dealer auctions.Believe it or not, experience makes you money in cars, Not auction access.When I was a dealer, I still bought over half my cars from private parties.Once, I bought a truck out of the newspaper for $1350 and sold it off the side of the road for $2800, (My biggest deal in over a decade in the car business).That same truck went through a dealer only auction a year and 20,000 miles later and sold for $2900 + buyers fee.My advice is if you want to buy & sell cars, do so.Unless you turn your front yard into a car lot or sell dozens per year, nobody is going to know you went over the supposed limit.And even ! if they do, they will just tell you to get a license or stop.Sure, by law, they could fine you. In the real world, that doesn't happen much....Show more

Cliff Jacoby: A dealer license will allow you to purchase cars at dealer auctions and resell them with no limits. Keep in mind though, that most dealer licenses have many requirements such as a properly zoned commercial property with signs identifying it as a car dealership. A car broker has the same rights but only needs an office somewhere like an office park. Check with your state, my license here was a lot more involved and expensive than I thought it would be.You can attend public auctions and sell cars without a dealer license, but there are limits. In my state without a license you can only sell up to 4 per year and 1 at a time....Show more