Unlicensed and Hobby Dealers

[msark]

What does the community think about unlicensed and hobby dealers? In So. Calif there are several operating and without any regulation. One does as much as photo shops DMV forms to make it look legit and puts them in the car just like a licensed dealer. The other keeps posting on several forums that "It's for my personal use" and it's not... They have no insurance or bond. They hold open titles which may or may not be real and transferable. Do we or should we care?

[Matt Monson]

Um, we call them what they are: curbstoners and flippers. And they are mostly scum.

[wgwollet]

I do not care, because if doing illegal stuff, in time it will bite them in the caboose.
California is broke and they are trying to round up these guys if illegal. CA laws are much different then say Maine, heck most vintage cars in Maine do not have titles...

😂😂😂😂

So what’s illegal in one state is perfectly fine in another. Long story.

[maninblack]

It makes me wonder why the government gets to tell anyone that they can or cannot sell a car in the first place.

[MrZee]

Maybe wgwollet does not care because he is one of the worst offenders and, as Matt states, is a "curbstoner and flipper. And [he is] scum." Somebody will bite him in more than his caboose if he keeps flipping cars by, illegally, in ANY State, skipping titles.

[SalParadise]

Originally Posted by maninblack

It makes me wonder why the government gets to tell anyone that they can or cannot sell a car in the first place.

True, and funny when you think of it.

[kc911s]

Just another example of “them” looking out for our “best” interests.

[991gts6s]

always rather get a project/old car from private guy .. never a dealer..

Who the heck would want to get a old car from a dealer.?

[robertmark]

Probably half the legit dealers are no better than your average used car, or mutual fund salesman. I contacted a couple of well known exotic dealerships when I needed an estimate of my cars value. I was told by the receptionist we'll get back with you. Of course they didn't, because I wasn't buying. Too dumb to look down the road, when maybe I would be a buyer. Another outfit advertises, "Deal with a gentlemen when selling your Porsche" Oh bull, I called them too with a question that had nothing to do with them making a sale, NO return phone call. What a gentlemen!!!! A little good will can go a long way, it sure did when I had my business.

[urseppos]

I have a dealer plate that I "rent" from a mate in Florida and for the sole purpose of being able to enjoy some cars without having to register them all as I despise paying tax on a used car. I bye the way am not a "flipper" but even if I did flip a car here or there, what is the issue with that ?

[MrZee]

Originally Posted by urseppos

I have a dealer plate that I "rent" from a mate in Florida and for the sole purpose of being able to enjoy some cars without having to register them all as I despise paying tax on a used car. I bye the way am not a "flipper" but even if I did flip a car here or there, what is the issue with that ?

Uh, IT'S ILLEGAL. That's the issue. If you don't take title and sell as if you are the owner, and you're not a dealer, it's sales tax fraud.

[QueWhy]

Originally Posted by MrZee

Uh, IT'S ILLEGAL. That's the issue. If you don't take title and sell as if you are the owner, and you're not a dealer, it's sales tax fraud.

Pretty strange that you registered solely to post in this thread. I personally don’t give 2 sh|ts what other people do. This country was founded on the premise of not wanting to pay unfair tax, our government squanders most of the money it takes in, so I don’t share your outrage at this ILLEGAL activity.

[kc911s]

Mrzee is pretty bitter.

[robertmark]

Originally Posted by QueWhy

Pretty strange that you registered solely to post in this thread. I personally don’t give 2 sh|ts what other people do. This country was founded on the premise of not wanting to pay unfair tax, our government squanders most of the money it takes in, so I don’t share your outrage at this ILLEGAL activity.

Right on, and Amen!!!! Tax me and give a billion dollars annually to a dictator in Egypt.
Thanks!!!!

[NYNick]

Originally Posted by MrZee

Uh, IT'S ILLEGAL. That's the issue. If you don't take title and sell as if you are the owner, and you're not a dealer, it's sales tax fraud.

Let's see:

I buy a new car for $40K and pay 7% sales tax=$2800
I sell the car 3 years later for $20K and the new owner pays 7% sales tax=$1400
He sells the car 2 years later for $10K and the new owner pays 7% sales tax=$700
He sells the car 2 years later for $5K and pays 7% sales tax=$350
And on and on...

That's $5250 in sales tax collected in 7 years on the same car that originally cost $40K, or 13.1%. Sounds like some kind of scheme the mob would dream up.

Oh wait. That's a tax law. Gotta be ok then.

[msark]

The issue of sales tax and the end user is a different issue. Many states have different rules about collecting tax and some still exempt private party sales. We all have our own feelings.

urseppos posting above is probably a risk to us all since without being an owner how does he get the insurance he might need in case of an accident? His dealer pal won't take the hit as he'll have some excuse.

This is about liars and fraud.....

On this forum as well as RL there are a number of sellers advertising as private buyers with one name and selling on other venues eBay, Craigslist with another name. Even here they use 2 names sometimes representing they are a dealer as a seller.....

Should you buy from them and there is a lien, something stolen or a problem with the title (here in California it can be fee's or parking tickets) there is no recourse.

[Matt Monson]

I don’t like paying extra tax. However even more than that I hate getting screwed on a bad title because a guy jumped title. I got screwed on my bumble bee. I got lucky on the Wyoming 912. There were hoops on the gulf blue 74. It’s extra work no matter what. So, I much prefer buying a clean car. I’m ok with a little tax to have the state certify a title to a person. It’s the cost of doing business. Don’t like the law? Work to get it changed, not break it.

[wgwollet]

Mr Zee

Is one of the worst offenders of flipping and moving titles, sour grapes.

[Unobtanium-inc]

Easiest way to be legit, is to be legit!

---Adam

[littleoldman]

^^^ I was wondering if he would chime in, I felt he'd stay out of this, but I guess not.