Do you think this would work?

Question

Buy a car for 1,000, give it a good wash and then sell it for 1,200. use that 1,200 to buy a little bit of a nicer car and then sell it for $1,500....use the $1,500 and buy a $1,700 car, sell it for $2,000 etc etc etc....are there any loopholes in there? Assume all the cars are in mechanically sound condition, and i dont sell more than 7 cars, because i know you would need a dealers license after 7.

Answer 1

probably not, unless you sell to dumb people.

Answer 2

Well assuming you could sell the cars for more than you bought them and were careful to provide the buyer will a bill of sale that said "as is" then it would work.  

Assuming the following also:

1. The cars you buy do not need anything that would cause someone not to want to buy them like major mechanical.  

2. You do not need insurance to drive them home (most companies will cover you for 30 days but check with your to be sure because sometimes they will not cover you for a "new" car, just to replace one you are trading in.

3.  No one asks why you are selling the car.....

4. There is not an issue with the title on the car you sell, otherwise you may get sued for the price they paid for the car.

Good Luck.

Answer 3

sure...lots of people do that...

but, id have some mechanical ability.  theres no such thing as a used mechanically sound car, unless your standards are low!

Answer 4

i kno EXACTLY what you're doing, cause i do it myself. the process is called car flipping.

just remember, the reason why the state limits the # of sales to 7 is because its actually illegal to buy and sell cars for profit. what you need to do is spread out your sales - dont go buyin and sellin every week, you're gonna get busted. u need to wait at least a few weeks in between each sale, then you can sell as many as you want! when i do it, i sell one average every 2 months. sure, it might seem like a while, but im able to keep going and going, constantly making money, dmv never contacts me.

and heres a tip - just incase u DO get caught, try this - whenever you buy a car, a lot of people rite on the bill of sale form a way lower price than what they actually paid for to save on tax. its considered tax evasion, but there's a big loophole - they cant bust u for it! people can sell cars for as low as they want. what im trying to say is DONT do this when you buy ur car. buy it, pay the tax, then when you resell it, let the buyer rite down as low of a number he wants, so then you can use this as proof that you sold the car for less the what you paid for it - so they cant bust you! thats the biggest loophole rite there. i make on average 5000 every 2 months. so 30,000 a year average, and its impossible to get caught.

sure some people can do it the more illegal way, but eventually they're gonna get caught. for me, i can keep going and going, thanks to the huge loopholes in the law

Answer 5

The problem is making sure that in a bad market like today you are able to sell the cars for a profit. Keep in mind dealers get the used cars at auctions, for lower prices than you do, so they can afford to have bigger profit margins, or sell for less.

You might be able to do it a few times, but be warned you could also end up losing.

Answer 6

It would work. Exceot you forget to figure in title, registration and sales tax in those transactions. Title jumping is a serious offense, alot worse than selling more than 7 vehicles in a year (actually 5 in my state)