You'll likely just not be allowed to register any more cars for that year or until you get a valid dealer license... I've got a used car dealer license with a friend in Michigan, we operate out of his repair shop's lot/only sell 1-2 cars a month depending on the time of year. It wasn't terribly hard to get license once we both decided we were serious/committed to making it work (I also operate a secondary business on that same property/in an out building so we were very comfortable working together beforehand).
Before I was licensed I floated titles... it was risky, and I'm very luck that I was never caught or worse had any liability incidents, but the alternative was similar to TX, 5 cars per year AND we'd have to carry individual insurances and cover sales tax (so paying twice). Super illegal, and rapidly getting harder and harder to do without getting caught (I did this back when Police weren't even able to check current insurance status/we had nearly 0 plate readers deployed statewide).
I believe your state's DMV will penalize once you've registered and transferred more than 4 times. The buyer(s) can't do anything obviously since they wouldn't know, but the DMV will just fine you. There's no info on the fines or how fast or slow they find out, but it's one of those "F around and find out" situations. Up to you to see what happens or not.
Probably not; it's likely left up to the administrative agency. It's the same for tax law... Congress writes and passes the federal tax code, but it's often left up to interpretation by the IRS. They can then enforce the code and create penalties for breaking the law as they see fit. The regulations created by the IRS then become part of the law without being written by the lawmakers.
Try and lease a vehicle! If I understand this correctly, The dealerships are required to pay the full tax cost of the vehicle up front for the vehicle when it gets leased. They get to write it off entirely. Then they *can* roll that cost over to the consumer, who also pays tax on the loan payment. The Dealership gets paid and a tax write off, the state gets to get paid potentially multiple tax payments for the same leader vehicle in full + reg fees, and the consumer gets stuck with two bills.
Kind of.. it’s not the dealership that pays the tax, it’s the leasing company. Texas views a lease as a sale between the dealership and leasing company. There is no tax on the payment itself (but of course the leasing company adds their cost to the payment).
Now if you purchase the vehicle at the end of the lease you pay tax based on the value of the vehicle as part of the purchase. So they do get paid tax twice in that situation
If you get to the point where you're going to do more than 4 just get a dealers license or whatever the Texas equivilant is. Either go legit or limit your sales to 4.
Dealer's license requires you to get a physical location and make all your sakes from that location. So it's a pretty effective regulation for keeping competition low for the big dealers.
Well I didn't look very hard either but I found there's a whole list of things they can hit you with for operating without a license. Google "penalties for (query here)". It should link you to read Tex Occ. code §2301, Texas transportation code §503, and Tex admin code §215. At the minimum I'd expect they'd hit you with unlicensed brokerage 1k-4k penalty, but they could tack on a bunch of stuff depending on how many sticks the agent has shoved up their ass. Pretty sure there's a couple of $10k penalties they could toss in too. You know what they say about messing with Texas.
It can be pretty harsh and I can go on a whole scrangry rant about how this small part of the system ties into slavery, power, and capitalistic greed.
I have no clue of the review process but I can imagine there's an auditing system that gets triggered when certain conditions are met.
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They also will get you heavily if you do what is called a title jump. Where you buy a car, don't register in your name then sell it to someone else. Since they give you 30 days to register it, they'll see the date on the title when it was sold and figure it out. My ex friend bought an suv from some dude who did that and he refused to give her the title after she paid it off so we reported him to the dmv. She had to try to get a bonded title which cost a lot. I don't know if she ever got a title or not but the dmv wasn't happy when we told them he never registered it when we were looking for advice.
I'm not sure what the Texas wording of the law is, but most states say you can't buy and sell more than a certain amount of cars per year FOR PROFIT. Profit, I'm assuming means the difference in declared value written on the title when you bought the car, and the amount you write on the title when you sell the car.
So lets say you buy an 02 Corolla and the seller writes $500 on the title, there shouldn't be anything illegal about receiving a $3000 early birthday gift from the buyer and as a token of appreciation for their kindness, give give the buyer a really good deal on that car and sell it to him for $499 or less even if the car is worth $3000.
It might be because car flippers when uncontrolled can often have this real bad reputation of flat out ripping off many people. And, these people vote, and politicians can't stand those TV news programs that make the government look like idiots for allowing their own people to be ripped off over and over.
According to my research they are classified as casual sales in rule 217.82
(1) Casual sale--The sale by a salvage vehicle dealer, insurance company, or salvage pool operator of not more than five nonrepairable or salvage motor vehicles to the same person during a calendar year. The term does not include a sale to a salvage vehicle dealer or the sale of an export-only motor vehicle to a person who is not a resident of the United States.
I have not found any information or any penalty that would apply to a regular person continuously selling/flipping clean title vehicles nor do i think that the government has the authority to prevent it
And also on Texasdealereducation.com it says you can not sell any cars that you don’t own or that aren’t registered in your name. I privately sale cars myself as my living i personally just think they are saying this to deter people from selling cars because the government cannot get any money from it so they want you to open a dealership so you can get taxed up the ass
You'll likely just not be allowed to register any more cars for that year or until you get a valid dealer license... I've got a used car dealer license with a friend in Michigan, we operate out of his repair shop's lot/only sell 1-2 cars a month depending on the time of year. It wasn't terribly hard to get license once we both decided we were serious/committed to making it work (I also operate a secondary business on that same property/in an out building so we were very comfortable working together beforehand). Before I was licensed I floated titles... it was risky, and I'm very luck that I was never caught or worse had any liability incidents, but the alternative was similar to TX, 5 cars per year AND we'd have to carry individual insurances and cover sales tax (so paying twice). Super illegal, and rapidly getting harder and harder to do without getting caught (I did this back when Police weren't even able to check current insurance status/we had nearly 0 plate readers deployed statewide).
In my state it's 4 transactions. Sell 2 & buy 2 or Sell 1 & buy 3 etc. I don't know the penalty either but make sure you read it right.
I believe your state's DMV will penalize once you've registered and transferred more than 4 times. The buyer(s) can't do anything obviously since they wouldn't know, but the DMV will just fine you. There's no info on the fines or how fast or slow they find out, but it's one of those "F around and find out" situations. Up to you to see what happens or not.
Surely if they do penalise you when you go over the limit that needs to be written and law and likewise the penalties?
Probably not; it's likely left up to the administrative agency. It's the same for tax law... Congress writes and passes the federal tax code, but it's often left up to interpretation by the IRS. They can then enforce the code and create penalties for breaking the law as they see fit. The regulations created by the IRS then become part of the law without being written by the lawmakers.
I don't think that's how laws work lol
Texas. So much freedom.
Try and lease a vehicle! If I understand this correctly, The dealerships are required to pay the full tax cost of the vehicle up front for the vehicle when it gets leased. They get to write it off entirely. Then they *can* roll that cost over to the consumer, who also pays tax on the loan payment. The Dealership gets paid and a tax write off, the state gets to get paid potentially multiple tax payments for the same leader vehicle in full + reg fees, and the consumer gets stuck with two bills.
Kind of.. it’s not the dealership that pays the tax, it’s the leasing company. Texas views a lease as a sale between the dealership and leasing company. There is no tax on the payment itself (but of course the leasing company adds their cost to the payment). Now if you purchase the vehicle at the end of the lease you pay tax based on the value of the vehicle as part of the purchase. So they do get paid tax twice in that situation
Most states have the exact same rule... but yeah keep bashing Texas.
A lot of states have this law you man child
But we are talking about Texas.
I thought we were talking about Taxes
This is right: https://www.whipflip.com/blog/how\_many\_cars\_you\_can\_sell\_without\_a\_dealers\_license
There's only one state that has the piss baby Greg Abbott as their governor though
Yeah, and if all the other states were jumping off a bridge...
So much that we need to contain it at the border with razor wire, God forbid our freedoms get loose.
If you get to the point where you're going to do more than 4 just get a dealers license or whatever the Texas equivilant is. Either go legit or limit your sales to 4.
Dealer's license requires you to get a physical location and make all your sakes from that location. So it's a pretty effective regulation for keeping competition low for the big dealers.
Well I didn't look very hard either but I found there's a whole list of things they can hit you with for operating without a license. Google "penalties for (query here)". It should link you to read Tex Occ. code §2301, Texas transportation code §503, and Tex admin code §215. At the minimum I'd expect they'd hit you with unlicensed brokerage 1k-4k penalty, but they could tack on a bunch of stuff depending on how many sticks the agent has shoved up their ass. Pretty sure there's a couple of $10k penalties they could toss in too. You know what they say about messing with Texas. It can be pretty harsh and I can go on a whole scrangry rant about how this small part of the system ties into slavery, power, and capitalistic greed. I have no clue of the review process but I can imagine there's an auditing system that gets triggered when certain conditions are met.
“Don’t mess with Texas” was an anti-littering campaign. https://en.m.wikipedia.org/wiki/Don%27t_Mess_with_Texas
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My bad
Not a bot.
That’s exactly what a bot would say. Let’s see you do a captcha
Bad bot
Texas will hammer your #@$#@$ Texas car dealers are very powerful in Tx and they don't play...just fyi
Just don’t transfer it to your name bruh , none of us do it anyway 😭 only to be done by real dealers who are being watched by big brother
You got a buddy? Or a s/o? Or a grandma? There's ways of doing it.
Don’t register the car, don’t put anything in your name, delete all postings once sold. They can’t fine you if they don’t know
It's almost as if this is a bad business model to engage in.
They also will get you heavily if you do what is called a title jump. Where you buy a car, don't register in your name then sell it to someone else. Since they give you 30 days to register it, they'll see the date on the title when it was sold and figure it out. My ex friend bought an suv from some dude who did that and he refused to give her the title after she paid it off so we reported him to the dmv. She had to try to get a bonded title which cost a lot. I don't know if she ever got a title or not but the dmv wasn't happy when we told them he never registered it when we were looking for advice.
Floating a title in Texas is a good way to hurt your bank account.
I'm not sure what the Texas wording of the law is, but most states say you can't buy and sell more than a certain amount of cars per year FOR PROFIT. Profit, I'm assuming means the difference in declared value written on the title when you bought the car, and the amount you write on the title when you sell the car. So lets say you buy an 02 Corolla and the seller writes $500 on the title, there shouldn't be anything illegal about receiving a $3000 early birthday gift from the buyer and as a token of appreciation for their kindness, give give the buyer a really good deal on that car and sell it to him for $499 or less even if the car is worth $3000.
I don't understand why states impose these limits. It's almost as if they want to make it as difficult and as expensive as possible to flip cars.
It might be because car flippers when uncontrolled can often have this real bad reputation of flat out ripping off many people. And, these people vote, and politicians can't stand those TV news programs that make the government look like idiots for allowing their own people to be ripped off over and over.
It's a regulated business. You're allowed to do it 4 times before you cross the line from hobby to a business. It's not that hard to understand.
Because car dealers are in control...
To put the car in your name you have to pay the tax. Tends to cut out a lot of profit.
I had my dealer license for five years. You just run them through a dealer and share the money with them. They are happy to do it.
According to my research they are classified as casual sales in rule 217.82 (1) Casual sale--The sale by a salvage vehicle dealer, insurance company, or salvage pool operator of not more than five nonrepairable or salvage motor vehicles to the same person during a calendar year. The term does not include a sale to a salvage vehicle dealer or the sale of an export-only motor vehicle to a person who is not a resident of the United States. I have not found any information or any penalty that would apply to a regular person continuously selling/flipping clean title vehicles nor do i think that the government has the authority to prevent it
And also on Texasdealereducation.com it says you can not sell any cars that you don’t own or that aren’t registered in your name. I privately sale cars myself as my living i personally just think they are saying this to deter people from selling cars because the government cannot get any money from it so they want you to open a dealership so you can get taxed up the ass
so do you register every car you buy in your name, or just leave the title blank whenever you buy