New Dealer on Board!!!=) Some questions

Jimmy Luk

Hi all, 

My name is Jimmy and I am a used car dealer new bee. =) Nice meeting you all here and I have some questions that I can't find out the answer myself. It will be great if you can help me with that. 

1. I sell cars to buyers who always want to get the title.

-    So, do they pay the $15 transfer fee and the tax at DMV when they transfer the title themself? 

 -  Do I only need to mailed out the statement of fact(stating they want to transfer themself) and Report of sales only? That's it? 

 

2. If I am buying cars from auctions which give you the title within 45 days, can I still sell the car without the title?

Thank you very much!!!!!

 

Marie Nies

Hello Jimmy, welcome. 1. This is the usual process when buying from a private owner. You should be collecting taxes and the $15 they would pay to the DMV. Not sure about the statement of fact but you need to keep good records on copies for those wanting the title directly (this should only be happening for your cash deals). 2. Sounds like your asking about your floorplan inventory, you can but that is risky. I would wait at least halfway though before doing so. 

For future reference I would highly recommend that you stay in touch with your state's DMV or Secretary of State. They are the ones that usually audit you for these things. Good luck

Brandon M

Hello Jimmy, What state are you in? I'm in NC and there may be a difference in state titling laws. If you are selling a car always handle the dmv paperwork yourself. Even if it's a cash deal. If a buyer insists on getting a title right away go with them to the license plate agency and process the paperwork with them. There is to much litigation that may fall back on you if the customer decides not to process the paperwork. Also, never sell a car without a title. There are incidents where the auction may not be able to obtain a title and they will request to refund your money and for the vehicle to be returned. You don't want to be the guy to call the customer you sold the car to and tell them to bring the vehicle back. Legally once the bill of sale, cash is collected and title work is signed by the customer you cant force them to give the car back. I hope this helps.    

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