How Many Cars Can You Sell In A Year In Florida?
Although every state allows the sale of personal vehicles, they all have limits on the number of vehicles that a person can sell each year without having to become a licensed car dealer. In Florida, it is legal to sell two cars a year, but if you sell three or more in 12 months, you must obtain a dealer license or you run the risk of fines and other penalties.
Getting a dealer license means attending dealer training classes, establishing a business entity, finding an appropriate office and display space, and securing insurance and a $25,000 surety bond, plus some other requirements. While the process is quite involved, it is legally necessary if you plan to sell three or more vehicles a year and it does offer some tax and other benefits compared to selling privately.
Selling A Personal Vehicle
The state allows the resale of one or two personal vehicles a year and to sell a vehicle privately, you may need to follow these steps:
A vehicle must be registered by a new keeper within 30 days of acquiring it. Selling a vehicle without first registering the title in your name is also illegal, and these offenses can carry financial penalties, as well as possible jail time.
How Much Does It Cost To Get A Dealer’s License In Florida?
If you sell more than two vehicles in a 12-month period, in Florida, you need to get a dealer’s license. A dealer’s license costs $300 and has a renewal fee of $75 per annum. Motor home dealers and other types of specialist vehicle dealers may have to pay extra fees according to the type of vehicle being sold.
What Else Is Required?
Dealer’s License Benefits
As well as ensuring that you comply with Florida state laws, getting a dealer’s license means that you will be able to access and buy from dealer-only auctions. You can also purchase at wholesale prices and with auction financing options, which tend to be more favorable than loans. You won’t have to pay sales tax or registration fees when buying vehicles either.
How Do You Get A Dealer’s License In Florida Without A Lot?
You cannot get a dealer’s license in Florida without having a lot to display vehicles. This is a requirement for the license application and cannot be circumnavigated.
How Much Does It Cost To Get An Auction License In Florida?
A Florida car auction license allows you to sell vehicles at auction. It has many of the same requirements as a dealer’s license, including the requirement to have a display lot and to put up a surety bond. Like a dealer’s license, it costs $300 for the initial application and has a renewal fee of $75 per annum thereafter.
Without getting a dealer’s license, it is legal to sell two personal vehicles a year. If you sell three or more in a 12-month period, however, you will need to apply for and receive a dealer’s license. This costs $300 and it requires that you have a registered business, a suitable office, and a display area for your vehicles. Getting a license will grant you access to wholesale auctions and reduce your tax liability when buying cars and is a legal requirement.
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