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I have sometimes thought that when someday I retire, it would be fun to buy old cars and trucks, fix them up, and then re-sell them. It would be my pocket money. Maybe a vehicle a month or something.
Sounds innocent and straight forward enough.
But just a few minutes ago while perusing some other (sorry) automotive sites, I discovered the terms "curbsiding" and "curbstoning".
Apparently, these words refer to the act of someone without a valid automobile dealer's license, making a habit of buying nd re-selling vehicles! On first reading, I would become a felon in my retirement!
Some sites that talk about this refer specifically to dealers pretending to be individuals. But others make it sound like even just the act of an individual buying and re-selling a car crosses the line into illegality.
Anyone out there have any industry or legal insight into this? Have the lawyers and the politicians and the used-car industry sucks ruined my retirement plans?
uummmmm......i have no legal insight into this...but, my long time nieghbor when i lived in KS did this, he would fix up cars for cheap and sell them to make profit. he did it the whole 8 years i lived there and probably still doing it now.
i am not legal scholar or anything, but i would think if you are just buying a car, fix some things on it, and sell it again, i don't really think that would qualify you as a dealer or someone who is doing something illegal.
i mean heck, i went through 2 vehicals in 3 months once, a jeep and a scout, sold them both for profit (not on prupose) i really wouldn't consider myself a dealer, and i know i didn't do anything wrong selling something that belongs to me.
I think it would be more of a Zoning issue. If you lived in a commercial or business are there should be no problem, but if you are in a residential area someone will complain. You can bet money on that happening...
Generally, curbstoners will place two or three vehicles on an empty lot (that they usually don't own), with for sale signs on them.
Most states have a limit on how many cars you can transfer title on in a year, regardless of whether or not you turn a profit. Here, if I remember correctly, it's five vehicles per year.
In MD, the DMV has a guy who scours the papers looking for the regular occurence of certain phone numbers. It's a very, very long shot that anything will happen to you. If they try and give you a hard time about it, just tell them it's not your car and that you're selling it for someone else because you have a superior location.
You don't say where you are, and I haven't been in Missouri long enough to know my own local laws, but after going thru many vehicles in Arizona, I knew that the law there is up to six. (You can buy and sell up to six vehicles per year without a dealers license.)
Most states allow 6 sales a year without license, so what a used car dealer does is have each employee curb six cars. So, that is where tracking phone numbers comes into play. Doing what you are doing is okay, imo. Though if you exceed more then 6 a year, you should get licensed. The state just wants its share of tax, that is all.
As stated by pretty much everyone above, typically states put a limit on the number of vehicles you can transfer per year to discourage exactly what you are describing... people in the "business" of selling vehicles without a proper business/dealer license.
Here in Oregon a dealer license is not all that difficult to get and it comes with the added bonus that you can make bids at dealer only auctions, which is usually a good place to find "fixer-up" type cars. You might want to check into what it takes in your state to get a license... it may not be all too bad.
The license is easy- it's the insurance that's the killer. What some folks do is form some sort of loose affiliation with a friendly local used car dealer.
When I checked it out a few years ago here in British Columbia I was surprised to learn the limit per year of vehicles registered in anyones name was 11. Not sure if it is anymore though.
I knew a few people who, to get around the 11 limit, would buy a car, get the paperwork filled out and never register it in their name becoming a middle man just selling it to the next guy who then filled out paperwork so the government would never know about the middle guy who got all the money tax-free.
I've owned 13 cars over 11 years, I still have the second one(my 77 truck) and my 13th one(my oldsmobile)
that the simple act of advertising or even displaying a certain number of vehicles for sale would be sufficient for investigators to lay curbsiding charges. “It’s important to note that the proposal does not legitimize curbsiding a certain number of vehicles - you still can’t sell even one car that isn’t your personal use vehicle,” says Carl
Compton, Executive Director of OMVIC. “What the proposal does is add new curbsiding offenses - advertising or displaying cars. This should make it tougher for curbsiders to operate, and much easier for us prosecute them.”
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