For states with no sales tax, is it an unlicensed car flippers paradise?

[atikovi]

I'm thinking Oregon, New Hampshire, Alaska if memory is correct. If you can buy and put a car in your name for a nominal title fee, are there a lot more unlicensed dealers flipping cars? If the average sales tax nationwide is about 6%, that's a $600 expense on a mid priced $10,000 car you won't have to pay and which would help profitability if you're only making $1000-$1500 a car.

 

[dishdude]

No tax on private sales here, but most curbstoners don't bother to register the car in their name.

 

[SubieRubyRoo]

I'm thinking Oregon, New Hampshire, Alaska if memory is correct. If you can buy and put a car in your name for a nominal title fee, are there a lot more unlicensed dealers flipping cars? If the average sales tax nationwide is about 6%, that's a $600 expense on a mid priced $10,000 car you won't have to pay and which would help profitability if you're only making $1000-$1500 a car.

Indiana law says if you sell more than like 5 cars in a year, you’re required to have a business license & pay those taxes. If you’re below that level, no concerns or meddling from the state.

 

[GON]

I'm thinking Oregon, New Hampshire, Alaska if memory is correct. If you can buy and put a car in your name for a nominal title fee, are there a lot more unlicensed dealers flipping cars? If the average sales tax nationwide is about 6%, that's a $600 expense on a mid priced $10,000 car you won't have to pay and which would help profitability if you're only making $1000-$1500 a car.

Oregon is a salvage flippers dream. No inspection or proof of repairs required to convert a salvage title into a rebuilt title. On top of that private parties) individuals can purchase salvage vehicles at auction no different than a licensed car dealer.

 

[atikovi]

Indiana law says if you sell more than like 5 cars in a year, you’re required to have a business license & pay those taxes. If you’re below that level, no concerns or meddling from the state.

I assume people have a spouse or kids or enough relatives they can title cars to so that wouldn't be a problem. Not to mention businesses they could title a car under like, Bobs Junk Removal Service.

 

[atikovi]

Oregon is a salvage flippers dream. No inspection or proof of repairs required to convert a salvage title into a rebuilt title. On top of that private parties) individuals can purchase salvage vehicles at auction no different than a licensed car dealer.

Had considered getting a suite at a UPS Store in OR for a fictitious business name under which I could title cars there years ago before being licensed here. I assume now they want some proof of residency like a utility bill or tax return.

 

[supton]

hadn’t looked into it. Pretty sure there’s laws against it. How enforced, not sure.

I sometimes think of traveling south and finding a pre 2000 car that someone lost the title to. Might not be registerable there—but I could here. And avoid emissions too.

 

[thastinger]

Had considered getting a suite at a UPS Store in OR for a fictitious business name under which I could title cars there years ago before being licensed here. I assume now they want some proof of residency like a utility bill or tax return.

I flipped cars in VA when I was younger. I would buy them from wholesalers and fix whatever they needed, get a legit state safety inspection and sell them. I learned that if it can't be taxed, it doesn't exist in this state. Would just go get a clean title in my name but not get tags for it as VA does property tax off the location you list as it being "garaged in" when you buy plates for it.

You're supposed to have a dealer license if you do more than 6 a year, at least back then, not sure what it is now.

 

[Nick1994]

Oregon is a salvage flippers dream. No inspection or proof of repairs required to convert a salvage title into a rebuilt title. On top of that private parties) individuals can purchase salvage vehicles at auction no different than a licensed car dealer.

Same in AZ, although there is a safety inspection to get it converted to a Restored Salvage title is all.

 

[andrew_j]

Most decent towns only allow X(a few) unregistered vehicles on property otherwise you become unregistered junkyard in NH and state chases you.

So most people do end up paying of NH registration fees.