How to Sell Used Cars Legally
Selling used cars can be a profitable side business or a full-time career. Making sure all of the transactions are legal is usually a simple process. Contacting the Department of Motor Vehicles is the best way to find out the exact procedure the seller’s state requires to legally transfer ownership to the used car buyer.
- Call your local Department of Motor Vehicles and ask how to legally sell a used car. In most states, you will need the title to the vehicle and the buyer must have a valid driver’s license. Take the buyer with you to the Department of Motor Vehicles, or DMV, so you can close the transaction once you find out the proper procedure.
- Decide whether to sell used cars on a regular basis or only once in awhile. If you intend to sell more than one used car at a time, it may be worth it to obtain a dealer’s license for your state. You can then consider starting a used car lot to increase your sales.
- Contact a local attorney to find out how to legally sell more than one used car at a time. You may want to speak with a tax attorney or an accountant for help structuring your used car business. Find out the best way to proceed and then decide how many cars you can afford to purchase and then resell.
- Work with a bank to finance your used cars. If you intend to frequently buy used cars and then try to sell them for a profit, having a credit line with a bank can help you finance the cars that you buy. Meet with a local lender to discuss the financing terms for your used car business venture.
- Obtain the proper title work once you buy a used car that you intend to resell. Do not buy a car from a seller who cannot provide you with a legal title. Contact the DMV to find out what you need to do to make sure that a car you buy has a legal title.