Dealer Consulting Services of PA, LLC
Pennsylvania is a great state to be a car dealer. Located at the “Keystone” spot between the Northeast, the South and the Midwest, cars flow through Pennsylvania on their way to different areas. Proof of this fact is shown in the large number of Dealers Only Auctions located in Pennsylvania.
Pennsylvania has some of the most restrictive car dealer laws in the U.S. Though licensed PA dealers may not have more laws to contend with, Pennsylvania law requires a dealer’s license in more situations than most other states.
- You may not sell a car for a profit unless you are a dealer.
- You may not sell any other person’s car unless you are a dealer.
- You may not sell more than 4 of your own cars in a calendar year.
Here it is from Title 37, Chapter 301.1:
Dealer or motor vehicle dealer—A person who is engaged in the business of selling, offering for sale or negotiating the retail sale of motor vehicles and including the officers, agents and employees of the person and a combination or association of dealers; a person shall be considered to be ”in the business of selling” motor vehicles if that person sells or negotiates the sale of five or more motor vehicles in a calendar year or sells or negotiates the sale of a vehicle which is not owned by the person or which is acquired for resale purposes.
Key Points: a person shall be considered to be ”in the business of selling” motor vehicles if that person:
- sells or negotiates the sale of five or more motor vehicles in a calendar year– which means you can’t sell more than 4 a year even if they belong to you.
- or negotiates the sale of a vehicle which is not owned by the person– which means you can’t sell your cousin’s car for her.
- or which is acquired for resale purposes. This means you can’t fix them up and sell them unless you are a dealer. How would the State know? That’s easy, you make a profit–sell the vehicle for more than you bought it.