Selling five or more vehicles in a year means a seller must become a registered dealer

Did you know??
According to the Code of Alabama, “any person engaged in the business of buying, selling, exchanging, advertising, or negotiating the sale of five or more motor vehicles not previously titled in the person’s name, at retail during a calendar year OR in offering of displaying motor vehicles for sale at retail to the public” is required to be a licensed dealer.

What does this mean?
Anyone who sells vehicles via any “retail” method, including via Facebook or other social media, is required to become a licensed dealer. This applies even if the seller does “even trade” transactions for additional vehicles when there are sales or swaps of five vehicles per year or more. In fact, not becoming a licensed dealer but conducting such business is punishable by Alabama Department of Revenue citations and fines.

Fines are provided for by Section 40-12-392(d), which states, in part, “A person who is subject to the licensing requirements of this article, but willfully fails to acquire the license, shall be subject to a penalty of five hundred dollars ($500) for the first violation and one thousand dollars ($1,000) for the second or subsequent violation.”

What else does this mean?
1) As always, buyer beware. Know what you’re purchasing and from whom. 2) Sellers, complete the process through the Alabama Department of Revenue to become licensed dealers and conduct your business accordingly. There are titling and licensing rules all dealers must follow. Be fair to your customers and to your business counterparts.
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