Selling vehicles for a profit without a license is illegal in every state. If caught, the penalty is a hefty fine and even possible jail time.
They are only required if you are driving an untaxed vehicle. They cost about £200 per year but you do need trade insurance to get them. If you aren't driving the vehicles on the public highway there is nothing else you legally need to do apart from give a 3 month warranty on the vehicle.
That being said, if you don't mind waiting a little longer for the sale, you may find that specialty vehicles can be very profitable, often making more profit per car than common vehicles. Some people flip or restore just a few classic or exotic cars per year, but earn up to $30,000 per vehicle in profit alone.
It is illegal to trade, sell or repair vehicles (including caravans) on the public highway or other public places, and we do not issue street trading licences for this purpose.
You can sell up to five vehicles as per the authorities. If you want to sell five cars in a year then you are not liable to pay sales taxes, no license needed, and any other education-related to dealership required.
Look around and see if you can buy these used cars to flip.
I've done the maths, and after flipping a total of 121 different vehicles I calculate they've made a profit of £246,418 – that's an average of £2,036 per vehicle.
Japanese cars are easy to flip
If you're planning to flip a car, and don't know where to start, then a Japanese car like a Honda or Toyota are great examples. The market for Honda Civics never seems to lose steam, especially for older, clean examples, and the same goes for the Toyota Corolla.
To get started, here's a list of the best items to flip.
Setting Your Car Flipping Budget
When setting the budget for your first car flip, people with experience suggest $1,500 as a starting amount. That gives you enough to buy a decent car at auction with moderate to high miles while leaving room to make about $500 to $800 in profit.
Some traders will be able to operate from home such as car dealers, and for some traders there won't be any need to find a dedicated business premises, for example a mobile valeter or a mobile mechanic – as they will only need their tools and van.
There is no minimum number of cars an individual can sell before they are deemed to be a trader. A person will only be considered a trader if they buy cars mainly for the purpose of reselling them at a profit, regardless of the number of vehicles sold each year.
A Mobile Mechanic will usually come to your house or place of work with the parts, and the tools, they need to fix or service your car then and there. Alternatively they may come to collect your car, repair it at their garage and then return it to you.
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