Flipping cars

[00XTL]

Whats going on everyone. So lately me and a buddy have been thinking about flipping cars for fun. I’m not sure If anyone on here has done it, but i have a few questions.

1. When going to buy the car is there any legal paper work that need to be done besides signing over the title?

2. Do i need to register the vehicle in my name if i trailer it home and dont plan on driving?

3. Do i need to to do anything with sales tax when buy or selling a car?

If anyone has any in site on the paper work aspect to flipping cars your knowledge would be greatly appreciated.

For reference we will be flipping cars in NC

Thanks

 

[Trainmaster]

That's a NC question, so you need an answer from someone who knows NC law. If you can't call your DMV there, find a place that handles volume paperwork for dealers. They can tell you for sure. You don't want to make a mistake based on bonehead internet advice.

 

[Janky]

Agreed. In WA, you are supposed to pay sales tax on the price of the vehicle. That being said, 30+ years ago I went through a number of cars. I'm pretty sure at least one of those I bought, got the signed title, then sold it without ever transferring into my name. Of course, I was dealing with cars that cost less than $1k. Probably not technically legal then, and I wouldn't be surprised if they require more signed paperwork now to prevent making profit of a few hundred bucks

 

[Aspen03]

I would imagine at a certain point its going to be considered a business and subject to applicable taxes and the like unless you're selling to friends, family, etc. Once you get out and start advertising and looking like a car lot, you're a car lot. Other small dealers don't much like having to play by the rules when you don't so don't plan on flying under the radar forever. It's a ruthless business in most areas.

There's likely legal implications in not titling the car to your first, I mean you can't sell it if it isn't yours, right? What if something happened to said vehicle on a test drive? It's not going to be insured because it isn't yours and if the potential buyer is hurt I hope you have a lottery sized savings account at the ready. Imo if you're planning to do this with the goal of turning a profit I would seek the advice of a local attorney to advise you. Ending up on the wrong side of the tax man or a lawsuit would be unfortunate.

 

[mwl001]

I know here in AZ once you sell 5 cars you need a dealer license (because there's no sales tax on private sales). TLDR you have a lot more research to do!

 

[JasonH]

There's probably a better forum for this, with info specific to your state. I suggest the reddit North Carolina sub.

 

[00XTL]

Thanks for all the feed back. It would be a small deal. Buy a car fix it and sell it. We probably wont buy the ndxt car till the first one is sold. Like i said its just for fun and to make extra cash on the side.

 

[postwick]

If it's just for fun maybe find a smal local "we buy at auction and sell on Craigslist" dealer who can either advise you, or be the business of record on the paperwork for you, using their dealer license.