Q: How can I legally be able to purchase a used cheap vehicle, get it registered and transferred, fix it and sell it later
I would be using it for a few months during or after fixing it and would fully own it, but before I do anything I want to know how to do this without violating Georgia law nor messing up taxes. As long as I limit it to 5 cars a year at most, and one at a time, can I do this without needing a dealer license?
A:
To buy, register, repair, and sell used vehicles in Georgia without a dealer license, there are some guidelines to follow. In Georgia, individuals are allowed to sell up to five vehicles a year without needing a dealer’s license. This is as long as each vehicle is titled in your name, indicating personal ownership, and not for the primary purpose of resale.
When purchasing the vehicle, ensure you get a proper title from the seller and follow the steps to transfer it to your name. You will need to register the vehicle with the Georgia Department of Revenue, pay the applicable taxes, and get a tag. If you use the vehicle for personal purposes during the time you own it, be sure it's fully registered, insured, and in compliance with safety regulations.
When you decide to sell the vehicle, you'll need to provide the buyer with a valid title and bill of sale. You should keep records of all transactions and expenses for tax purposes. Even if selling fewer than five cars a year, it’s a good practice to consult with a tax advisor to understand any potential tax obligations from the profits made through the sales.
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