Buying a Car to Resell

hooked · 08-07-07, 09:07

I know there was another post about this topic a while ago, but my searching has been unsuccessful.

I have an opportunity to buy a car cheap, recondition it, and hopefully sell it for a profit.

My question is, how does the process work with the Title? When I buy it, the owner has to sign the Title over to me right? Do I have to send away this title to the State and wait for a replacement title with my name on it before I can sell it?

P.S. I'm in Florida. The procedures are probably different state to state.

kkreit01 · 08-07-07, 09:35

I'm thinking the answer to both your questions is "Yes". You could google your state's DMV -- or just give them a call. They are typiclaly very friendly people

qballjr13 · 08-07-07, 10:16

You should call TLC or the Discovery channel and start a show called "Flip This Car". Good idea, I hope it works out well for you.

And you can not sell a car without the title being in your name (or your lender's name if you finance it).

qballjr13 · 08-07-07, 10:18

Quote:

Originally Posted by kkreit01

They are typiclaly very friendly people

Are you being sarcastic??? Try calling a DMV in Mass and see how "friendly" the people are!

porcupine73 · 08-07-07, 12:29

Another possible issue is sales tax. Like in NY, you have to pay the sales tax when you apply for the title, even if you do not register the vehicle.

hooked · 08-07-07, 01:14

Thanks for the input. I want to do this the right way. I'm just trying to figure out if it's worth it or not. I did check the DMV site and it's $30 to transfer the title and another $30 probably for tax, so the fees are definitely eating into my profit margin here! Might not be worth it after all.

Coupe · 08-07-07, 01:24

Ive been thinkin about doing this lately also. I dont see why i couldnt buy a vehicle for $1500-$2000 and then spend a week reconditioning it inside and out and then turn around and sell it for $500-$1000 more than i bought it for. The hardest part would be finding one that is in decent mechanical condition and does not have paint failure/rust/big dents.

I see cars on the side of the road for sale all the time in that price range that really just need a good recondtioning.

kompressornsc · 08-07-07, 02:52

Quote:

Originally Posted by qballjr13

You should call TLC or the Discovery channel and start a show called "Flip This Car". Good idea, I hope it works out well for you.

And you can not sell a car without the title being in your name (or your lender's name if you finance it).

There was a show. I think it only lasted a few episodes-haven't seen it recently. I think it was on TLC.

Grimm · 08-07-07, 06:18

I asked about this several months ago and people thought I was crazy. But I think it would work if you find the right car. You might not have success doing it often and making a lot of money, but there are plenty of cars out there that would bring more money if they were detailed. Heck, I sold a 1996 Olds in March and the guy commented several times on how great it looked. I think cars with single stage paints would probably be prime targets since they seem to oxidize and get dull easier than a CC paint.

As far as the title, I know I've heard of people not signing the title. My neighbor had a '69 Pontiac where he was the third owner, but the guy he bought it from never titled it. I think as long as the previous owner has signed it, you are good to go. But that may depend on the state too since I've seen it suggested that the owner and buyer should go together to have it done.

PRB · 08-08-07, 06:17

Quote:

Originally Posted by hooked

I know there was another post about this topic a while ago, but my searching has been unsuccessful.

I have an opportunity to buy a car cheap, recondition it, and hopefully sell it for a profit.

My question is, how does the process work with the Title? When I buy it, the owner has to sign the Title over to me right? Do I have to send away this title to the State and wait for a replacement title with my name on it before I can sell it?

P.S. I'm in Florida. The procedures are probably different state to state.

In Florida, check with one of your local tag agencies about how quickly you can get a title. Some states will allow you to pay an extra fee and get the title in 10 days or less.

Also, you'll have to pay sales tax if you purchase it. Tax is collected by the tag agency.

In my state, it's 6% of the vehicle purchase price. YMMV

PRB · 08-08-07, 06:24

Quote:

Originally Posted by Grimm

As far as the title, I know I've heard of people not signing the title.

If a person intends to buy it from one person and never register in their own name, then sell it to someone else, that's called "title jumping." The exception would be someone who is licensed as some sort of sales dealer in their state, but even dealerships leave their business name and signature on a title.

The reason people do it is to get out of paying sales tax and the costs associated with titling. Verrrry illegal in those situations

Also, what if the person you are selling to asks WHY your name is not the one on the title? Is the car and title stolen? What if the buyer is getting a loan to purchase? A financial institution will only make a check out to the name of the seller on the title. If a police inspection is required for out of state purchase or otherwise, you'll be caught trying to jump the title.

Some people will not turn in the original title on an older car because they want to have the original title as a keepsake and or selling point. In states requiring a title for registration and sale, a seller can file for a replacement title, claiming the original was lost or destroyed. The replacement serves as legal documentation and the old one (original) can be kept for sales and memorobilia purposes.

hooked · 08-08-07, 09:01

Thanks, folks. I knew I'd get a lot of great info here.

So, based on this info, this is the process:

1) Pay Original Owner of the car and he signs over the Title
2) Go to Tag Agency and pay for new Title and pay Sales Tax there?
3) At this point I need to insure the car?
4) After receiving new Title in my name, sell the car and sign the Title over to the new owner

Am I missing something or is something incorrect?