Buying and selling cars for profit?

Jacques Teri: The practice is known as "curbstoning" and there are laws against it. State laws vary. In Maryland the penalty can be $5,000 or one year in jail. The law is rarely enforced and many curbstoners don't bother to get a title in their name to avoid paying sales tax and to avoid the state from finding out how many cars they are actually selling. Skip titling to avoid tax violates sales tax laws as well and is a separate crime. Again, rarely enforced.

Jacques Vaquera: Most states have unenforceable limits of like 5 cars per person per year or something like that. Those limits are not intended to, nor do they hinder anyone who isn't making a "business" out of it.The problem you will run into is the "tax & title" fees for registering each car, the insurance for each car until you sell it and the delay of 3-6 weeks waiting for the new title to come back.Occasionally you can buy from someone who doesn't know any better and leaves the title open except for s! igning it. That will allow you to sell it to someone else as if you were the seller and avoid the tax, title & delay. Of course, this is expressly illegal in every state for the simple reason that the states want their tax money.For all practical purposes, you are unlikely to get caught or in trouble for any of the above unless you have a front yard full of cars for sale, complaining neighbors or pissed off buyers who want to sue you.Ive done the above dozens of times over the years. Sometimes I would make a bill of sale without a place for the seller to sign, other times I would sign the sellers name myself on the title even though it didn't match the actual sellers signature on the back of the title, it was never a problem.Out of all those times, maybe twice I had buyers call and say the idiot at the DMV would not accept the bill of sale without a signature. I told them to sign the other persons name and get back in a different line and it worked fine.The bill of sale can! not have your name or any mention of you on it if you are deal! ing with open titles. And make sure "as is" is clearly marked.And ALWAYS keep a copy.A few times, I even told the people I bought from what I was going to do and had them sign a blank bill of sale.Some sellers wont go for this nor should you when selling....Show more

Arleen Bussing: Yes you pay tax on profit just like anything else.

Charissa Riley: In order to buy and sell cars in quantity you have to be a licensed dealer. You can't start any business without first obtaining a business license. Used Car dealer licenses aren't cheap. But in most states you can legally sell a few cars (maybe as many as 5) on your own each year without breaking the law. How many the law allows is determined by the state. Check your local laws for the details. Every state regulates used car sales since this business receives the largest number of consumer complaint year after year....Show more