How many cars can you flip in a year without a dealers license


how many cars you can buy and sell without a dealers license

For everyone that is interested in flipping cars as a side hustle but are unsure what the maximum number of cars you can sell without a dealers license is check out this graph we have compiled!

This information is accurate as of the date this post was published, June 28 2019. Be sure to double-check with your state however because individual states may change their laws regarding dealer licensing.

This chart’s numbers is based on the yearly number of cars an individual can sell without having to obtain a dealers license. Although, some states have additional limitations this chart accurately reflects the general number of cars you can sell in any given state.

StatesMax # of Cars W/O Dealer License
Alabama4
Alaska4
Arizona6
Arkansas4
California5
Colorado2
Connecticut
Delaware4
Florida2
Georgia0
Hawaii2
Idaho4
Illinois4
Indiana11
Iowa4
Kansas4
Kentucky
Louisiana4
Maine4
Maryland2
Massachusetts3
Michigan4
Minnesota4
Mississippi
Missouri7
Montana
Nebraska7
Nevada3
New Hampshire4
New Jersey
New Mexico4
New York4
North Carolina4
North Dakota
Ohio5
Oklahoma
Oregon5
Pennsylvania4
Rhode Island4
South carolina5
South Dakota4
Tennessee5
Texas4
Utah2
Vermont11
Virginia4
Washington4
West Virginia5
Wisconsin5
Wyoming2

This data was not compiled from guesses, forums or any non-government website. This data was collected through either 1) state government website or 2) directly calling individual state dealer licensing.

Outlier Individual States:

California

California Dealer Registry #: (916) 229-3128

Connecticut

This was the biggest sh** show for trying to get in touch with someone that knew what they were doing.

Here is the official Connecticut law on the subject: “Anyone found selling or repairing motor vehicles in Connecticut without a Connecticut Dealer License is committing a class B misdemeanor and is subject to arrest.” That being said Connecticut likely has a maximum number of cars you can sell on the books, I just could not find a reliable source.

If your from Connecticut and you want to try and contact state licensing here is their phone number: (860) 263-5700, (860) 263-5405. I wish you luck with this one.

Kentucky

The maximum number of cars you can sell is ZERO if you intend to profit from it. There is no limit for sales of personal vehicles.

Maine

The four car max rule does not apply to vehicles that you have owned and registered for at least six months! 

Mississippi 

The maximum number of cars you can sell is ONE if you intend to profit from it. There is no limit for sales of personal vehicles.

Mississippi Dealers Registration #: (601) 923-7200

Montana

You may not sell a car that is not in your name without a dealers license. There is no limit for sales of personal vehicles.

New Jersey 

After getting transferred 5 or 6 times and talking with numerous Motor Vehicle Commission employees it appears that there is no set limit on the number of cars a private person can sell. However, the employees were clear with me that selling too many cars in a year would throw a red flag.

If your from New Jersey and you want to give talking with the state licensing a shot here is their phone number (609) 292-6500.

North Dakota

DMV says no set limit on selling vehicles. If your main source of income/bread and butter is a car flipping business you need a license. The state does not have a problem with hobbyists who restore cars from time to time and sell them.

North Dakota’s Dealer Registration #: 701-328-2725

Oklahoma

You must have a license to buy and sell a single car with the intent to profit. There is no set minimum or maximum for selling personal cars. 

Oklahoma’s Dealer Registration #: (405) 521-3600

Washington State

You may not sell a car that is not registered to you personally without a dealers license.

Additional Information

As you can see in the chart and in the individual outlier state section, there is a lot of variation among states in regards to individuals buying and selling cars without a dealers license. Some states are extremely strict and do not allow you to sell any vehicles with the intent to profit without a dealers license.

Other states, like Indiana and Vermont have very seller-friendly rules. These two states allow you to sell up to eleven vehicles without having to register with the DMV.

Additional Rules

Many states have additional rules regarding who needs a dealers license. For example, although Maine has a four car maximum, even if you don’t sell that fifth car Maine requires that you get a dealers license if you have three or more vehicles advertised over a thirty day period. Other states do not allow you to sell a single car that is not registered to you.

“No Limit for Personal Vehicles”

As you can see many states do not have a limit for selling personal vehicles. However, don’t assume that if you live in one of these states you can sell five cars a month and the Department of Motor Vehicles will believe you when you tell them that they were all personal cars.

Additional Resources

https://www.dmv.org/

Conclusion

I hope this article has helped you with identifying the rule in your state for selling cars without a dealers license!

 

Stephen Metellus

I am a BMW enthusiast and owner of abetterbmw.com! I have been repairing, flipping, and parting out BMWs for nearly ten years. I love these vehicles and I hope you will find my articles and YouTube channel helpful for whatever BMW project you have in store!

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