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View Full Version : At what point do you need a license to sell cars?



broken_legs
10-19-2007, 09:57 AM
Hey Guys,


I actually tried searching for this but wasn't able to find anything relevant


I'm wondering if anyone knows at what point you need to get a dealers license.

Say i was importing 2-3 cars a week from the US and selling them all personal sales - Would I need to get a license?

Is there a cut off when what you're doing is considered a business and not just bringing over fun cars to play with and then sell?

Thanks for reading

analbumcover
10-19-2007, 10:01 AM
Originally posted by broken_legs
Hey Guys,


I actually tried searching for this but wasn't able to find anything relevant


I'm wondering if anyone knows at what point you need to get a dealers license.

Say i was importing 2-3 cars a week from the US and selling them all personal sales - Would I need to get a license?

Is there a cut off when what you're doing is considered a business and not just bringing over fun cars to play with and then sell?

Thanks for reading

i dont think they would let you bring over 2-3 cars a week to sell, and it wouldnt be a private sale since you have intent to make profit.. they would probably stop you on your 3rd and be like what the fuck are you doing buddy, i think if you are selling upwards of 5 a year (within province) you are supposed to get some sort of licensing, do not quote me though

rage2
10-19-2007, 10:10 AM
For tax reasons, you can sell 2 cars a year before having to declare profits and losses to your income tax. AMVIC wants you to get a business license as well as registration with them even if you decide to sell 1 vehicle a year as a business. Otherwise, you're considered a curber to them and may have problems registering with them to sell vehicles legitimately in the future.

G-ZUS
10-19-2007, 10:59 AM
Don't wanna fuck with AMVIC or the tax-man, they are ruthless, illegitimate sons of female dogs

bobby_lu
10-19-2007, 11:02 AM
Incorporate
Municipal Business License
AMVIC license (as well as salesperson test)

That should get you on your way, im not sure as to the specifics of US brokering.

bituerbo
10-19-2007, 01:32 PM
Originally posted by bobby_lu
Incorporate
Municipal Business License
AMVIC license (as well as salesperson test)

That should get you on your way, im not sure as to the specifics of US brokering.

This is true, however depending on who you're selling to there are a few more steps (I'm an AMVIC licensed business owner so feel free to PM me with questions - or call the AMVIC office up in Edmonton the girls up there were SUPER helpful when I was starting out).

You will need a lot, or commercial-zoned place of business if you plan on selling down to the public. Otherwise this restricts your ability to get a retail license and you will only be able to deal with wholesale (which includes not bringing the cars into your own name). Also you will need a GST number as you're a business and therefor will have to charge people the taxes the goverment is owed.

Best way to do this is talk to a friend/friend of a friend until you find someone who owns a used-car dealership, and have them sign a piece of paper saying that for $100 a month (or whatever the owner of the current business decides to charge you) you have exclusive use for 1-2 spots on his lot - meaning a place people can come and view the cars, a place for you to store the cars while selling.

A home occupation permit (a form of municipal license) will not be enough if you want to sell to the public. You will not be allowed to store the cars at your home until they are sold.

If you are doing this on a 3-5 cars a week basis you really should be amvic licensed, in fact I think they will stop you from operating after 1 week at the rate you're [planning on] going. The registries allow you to acquire 6 vehicles annually before you have to be a business.

broken_legs
10-19-2007, 02:25 PM
haha

Thanks for the info guys


Last post was really helpful. 2-3 cars per week was a hypothetical. Just thinking out loud here :-)

ScottysZ
10-19-2007, 02:32 PM
Probably wanna check with insurance too, dealer insurance is very expensive form what I hear, and I think most places will limit how many cars oyu cna have/year or something while remaining on just regular policies.

bituerbo
10-19-2007, 02:47 PM
Do it casually at first to see if it's something you want to deal with - you've got those 6 free transfers, make sure you get the cars insured and you're covered - you're just an indecisive car buyer.

Dealing with scummy auction houses and shady used car dealers all day does take it's toll on your faith in people.

G-ZUS
10-19-2007, 02:55 PM
Originally posted by bituerbo
Dealing with scummy auction houses and shady used car dealers all day does take it's toll on your faith in people.

Those 2 are the worst, Im still trying to deal with those 2 which I bought a car from that was rolled back:thumbsdow

NZClaybuster
10-22-2007, 12:18 PM
Which auction did you buy a rolled back car from?

G-ZUS
10-25-2007, 04:03 PM
Michener Allen ^

damanshow
02-24-2010, 06:12 AM
Hey everyone

I inquired about having to get a dealers license to sell used atv's. I called MTO and they said " no you do not have to have a dealers license if you sell them as ' intended for off road use ' " that is what MTO email me back .
I guess this makes sense as the following comes from clause 3 on the OMVIC website link :
http://omvic.on.ca/documents/Files/print/dealer_registration_faqs_print.htm

It states the following
3. What kind of registration is required for selling used vehicles? For motorcycles?
There are no distinctions – in terms of registration requirements or in terms of the registration (licence) itself – between selling new vehicles and selling used vehicles, or between selling automobiles and selling motorcycles, trucks, motor homes, etc. Anybody selling vehicles that are intended for use on the road – as opposed to farming, construction and mining equipment, or recreational vehicles such as snowmobiles and the like – must be registered under the Motor Vehicle Dealers Act.

As you can see recreational you do not need a dealer permit. I even phone and talked to the guy at MTo and he confirmed and said as long as you selling your ATV's for off road use intended then you dont have to have a dealer license . Its up to the person buying if they want to lenience it "

Being ALL this said does anyone have any opinions on this ? I jsut wnat to make sure is all so I dont get into trouble
PS I selling the atv online and only put 1 or 2 infront of my home sometimes

damanshow
02-24-2010, 06:21 AM
Originally posted by analbumcover


i dont think they would let you bring over 2-3 cars a week to sell, and it wouldnt be a private sale since you have intent to make profit.. they would probably stop you on your 3rd and be like what the fuck are you doing buddy, i think if you are selling upwards of 5 a year (within province) you are supposed to get some sort of licensing, do not quote me though

I have been bring atv s over from the USA . I started import with 2 then 3 at a time then when to 5
They questioned me on this at the border " are you bring these in for resale "
I just said no they are for my parents cottage country for everyone to ride "
the customs officer just make a funny face and said " well ok you sure "

I did it again then with 6 atvs and had then same type of questions

I am just wondering what is the requirement on ATV larger mass imports because they are OFF ROAD use they are not the same as a car.
In the Customs eyes I wonder what the resale importing expectations or differences are

chris746
02-25-2010, 08:46 AM
telling lies to customs, smart :D

Tik-Tok
02-25-2010, 09:12 AM
Hi Dr.Nick!

Supa Dexta
02-25-2010, 09:44 AM
My cuz is doing in in NS with snow mobiles too (some cars and bikes now and then too).. But he did it legit, business licence, dealer plates and the whole bit.. Wasn't that hard, but did take some time and run around.