Resell used car shortly after buying (vehicle, buy, tax, paperwork)

[hobart13]

This is all hypothetical (i.e., I don't already have a car I want to sell). I'm probably not going to do this, I'm just curious.

Regardless of whether it's a good idea, is there any way, legally (or that you could get away with), to sell a car soon (~2-3 weeks) after buying it?

The jurisdiction I'm interested in is Connecticut on both ends, or else buying in some neighboring state (NY, MA, RI) and selling in CT. I'm not a legal resident of any of these states.

AFAIK, when you buy a used car, you and the seller write your names and addresses on the back of the title, and then you (the buyer) must submit the title to the DMV to register the car, and after waiting a while they issue you a new title in your own name. So does that make it impossible to sell again until you get the new title? I don't care if I'm not able to register the car while I own it, as it's possible to get special temporary plates as an out-of-state resident.

One thing that occurred to me is that it should be possible at least on a title-exempt vehicle (ages vary by state).

I promise not to do anything irresponsible, I just want to know

[Me007gold]

Yes legally, if you buy a car you need to register it, however people do this all time time, buy a car and never register it in their name and resell it

[ukrkoz]

You have to have clean bill of sale, without your name on it. Seller must submit sale slip to DMV. You can ask seller to leave it blank. People do this. Depends who you dealing with. Some are scared to death of anything illegal, others don't care.

[hobart13]

So I thought I knew how to get a temporary plate, but that only works by showing the DMV the properly signed title / bill of sale. So when people do this do they use the original owner's plates? That seems like a liability for the original owner, right?

[sunsprit]

There is no requirement for a time of ownership on a motor vehicle before you resell it.

You could buy a car and resell it within minutes.

The paper trail will catch up with the transactions; ie, you get a bill of sale and title documentation with your purchase, which you then must submit to the authorities to complete the legal transfer of ownership, sales tax payment, etc.

You can then sell the vehicle with a bill of sale and the title paperwork to follow upon receipt of it from the authorities. Nothing wrong with that, happens every day and is business as usual for many car dealerships.

There are reasons why as a private buyer you might insist upon proof of ownership and a clear title to a vehicle you buy; knowing that the title is clear facilitates the transfer of ownership for your purposes, and expedites the legal side of the transaction. But you are free to resell the vehicle as quickly as you care to do so.

Transfer of "original owner's plates" varies by the state(s) involved. Some allow the license plate to stay with the vehicle, some require that the plates are the property of the seller and cannot be used by the buyer. You need to check with your own state license laws. In the states where the plates belong to the seller, you are misusing plates to leave them on the vehicle if you are now the legal owner, and there can be liability issues if the vehicle is caught with the wrong plates on it ... especially if it's involved in an accident but the seller claims that he doesn't own the car at that point.

[duster1979]

It varies by state. Here in Iowa (and in Illinois where I lived previously) I can purchase a vehicle and resell it without ever transferring it into my name so I can literally sell it within minutes of buying it if I want to. And it's all completely legal, there is a provision right on the title in both states for immediate reassignment of title. It's there mainly for dealerships, but there's no restriction that prevents a private seller from using it.

When you register a car in Iowa they print you a new title right at the courthouse, so here you can also pretty much immediately resell a car even if you do put it in your name. The downside is that you have to pay the sales tax and title transfer fee. You have to pay the registration fee as well but that is refundable if you turn in the plates. I know this isn't possible in some other states because the new title comes from a central state office. Illinois used to be this way, but I don't know if they are these days.

[jtur88]

When you buy a car you have 30 days to begin the title transfer and registration process. There are additional lines on the back of the title, for a series of purchasers to sequentially buy and sell the car before transferring title.

In fact, it is not necessary for you to sign the back of the title immediately after the seller signs it over to you, but if you drive the car during the interval, it should have your signature on it.

[Checkered24]

With all the proper documentation to show you have legal ownership, and are transferring it, I am sure there is a way to sell without the new title in hand.

That said, it does seem like it would present more hassles, and risk, for the buyer. He would need to be confident there is no lein on the title, without having the title in hand to verify that against. He would also have more of a burden of proof of ownership at the DMV to get a title and registration for himself.

How long is the turnaround for getting a title in your state?

[smarterguy]

Just note for others reading this, if you buy/sell too many in a year and don't have a dealers license they'll find ya, and they'll fine/tax ya!

[dude_reino]

Do everything in pencil.