How Many Cars Can You Sell in a Year in Kentucky?
If you don’t have a Kentucky dealer license, you can sell up to five vehicles. Of course, this is plenty for those who aren’t selling vehicles as a primary source of income. Also, if you are only selling your personal cars, then you probably aren’t going to sell more than five.
However, if you plan on making selling cars a source of revenue, then you should likely get a dealer license. This license is provided by the Kentucky Motor Vehicle Commission, which oversees all dealership activities in the state.
With that said, there are different types of dealership licenses. The one you need will depend on exactly what cars you plan on selling.
Types of Dealership Licenses in Kentucky
All licenses cost $100. You will also need to pay for a background check and a salesperson licensing fee if this is your first dealership license. Both of these cost $20 each. If you already have a background check on record with the state, you may not need to pay for another one.
What Do You Need for a Dealership License?
Most types of dealership licenses need the same things. You will need to provide information and proof for these metrics when you apply for your license. Your completed application needs to be submitted 10 working days prior to the first Friday of each month if you want it on that agenda for that month. Otherwise, you’ll have to wait another whole month.
Can I Sell More Than 5 Cars a Year?
You will need a dealership license in Kentucky to sell more than five cars per year. Quite a bit goes into getting one of these licenses, including having a commercial location of business. Therefore, unless you plan to sell many cars, it isn’t worth obtaining one.
It isn’t like other licenses where you need to pay $20 and then be covered. A lot goes into the application process, and it will likely cost quite a bit of money.
How Much Does It Cost to Get a Dealer’s License in Kentucky?
All licenses cost $100, not counting a background check and salesperson license, which you will also need. These cost $20 apiece, assuming you don’t already have them. Everyone planning on working for you will need a background check and a salesperson license. The owner also needs one, even if they don’t plan on doing any selling directly.
In most cases, you’ll just need one license. For instance, a used car dealership will only need a license to sell used cars.
However, there are some circumstances where you will need more than one license. For instance, opening up a franchised location that will also sell new and used cars would require two different applications and licenses.
How Many Cars Can You Sell Before Being Classed as a Trader?
It doesn’t particularly matter how many cars you sell. If you purchase cars for the main purpose of selling them for a profit, then you are counted as a trader. It doesn’t matter if you sell one vehicle or twenty. It’s the purpose that matters.
In Kentucky, you can sell up to five cars before needing a license. They don’t particularly care about the purpose of the cars. Therefore, you don’t need to worry about being classed as a trader.
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How Many Cars Can I Have in My Name?
There is no limit to the number of cars you can have in your name. As long as you aren’t selling more than five cars a year, the state does not care how many cars you have. Some individuals have more than 1,000 vehicles in their name, such as the owners of corporations.
There is no reason to worry about the number of cars you have in your name in Kentucky. However, you can still only sell five cars a year without a dealership license, even if that’s a fraction of the cars that you own.
Can You Flip Cars for Profit?
Yes. If you flip under five cars a year, you don’t need a license for it, either. In some cases, people may sell a few classic or exotic cars each year and make plenty of money off those sales alone. In this case, you won’t need a license – even if it is your main job. You just can’t sell more than five. However, if you go over five cars a year, you will need a dealer license.
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Conclusion: How Many Cars Can You Sell in Kentucky?
Licensing dealerships in Kentucky is a bit expensive. Anyone in Kentucky can sell up to five cars per year privately. However, if you sell any more than that, you will be counted as a business and will need to get a license.
There are many different licenses depending on what you plan on doing. All licenses only cost $100, though a lot goes into getting one. You will need your own place of business, for instance, with a sign installed and a name chosen.
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