Selling used cars can be a good way to turn a tidy profit. In fact, many people have been able to turn used-car selling into big business. If you're just starting out, this business may seem simple, but there is some legal ground to cover before you start selling.
Instructions
Get Set up to Sell Used Cars Legally
1. Have a valid driver's license for the state in which you want to sell used cars. In most states, you cannot legally start a used-car business without being licensed to drive in that state.
2. Figure out whether you need a license to sell used cars legally in your state. If you are planning to sell cars on an isolated or occasional basis, you probably won't need a license. Many states will allow you to sell five or fewer cars per year without a license.
3. Learn your state's documentation requirements for selling used cars. For example, there will be title transfers to handle legally, and some states require smog certifications and odometer-reading documentation.
4. Contact your state's Department of Motor Vehicles or its equivalent to learn the requirements for getting a dealer's license. In some states, only paperwork is required, while in others you may need to take a class and pass an exam. Typically, there is a fee for this license.
5. Find a lot on which you can sell the used cars. You might think you can simply park the cars in your driveway, but state laws usually prohibit this. You'll need a lot with enough spaces to park the number of used cars you hope to have in stock at any given time.
6. Make sure there is a building from which you can conduct business on your lot. Usually, this is a requirement, as is a telephone.
7. Erect a sign on your lot or building, making sure you adhere to any zoning laws that may apply in your area.
8. Purchase liability insurance. This will protect you and your business from losses if someone has an accident while test-driving one of your cars or gets hurt on your property.
9. Buy used cars to sell on your lot. You have plenty of options when it comes to this, including buying from auctions, newspaper classified ads and even other car lots. Some good Websites for finding used cards you can resell include Auto Trader, eBay and Cars from 500.
Tags: used cars, sell used, used cars, your state, Cars Legally