Is it legal to flip motorcycles? Here’s What You Should Know

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You’ve probably heard of a person or two who has made a pretty penny by flipping motorcycles. It sounds very appealing, especially when you see someone else do it and how easy it is.

Many questions are raised about this process. People often wonder if it is legal to turn a motorcycle.

Is it allowed to ride a motorcycle in reverse? You can legally flip a motorcycle if you register it and title it under your name. Each state has a maximum number of vehicles that can be legally sold within 12 months. If you wish to sell more motorcycles than what your state permits, you will need to obtain a dealer’s license.

While I was in college, I have had success flipping motorcycles as a side hustle. It can be easily done and there is money to be made, but it’s important you comply with your state’s law so you don’t get in trouble. This article will explain how to legally flip motorcycles.

Legality of flipping a motorcycle

Many people misunderstand the meaning of the term. “flip” When talking about flipping a motorcycle, it means. Flipping a motorcycle is when you buy a motorcycle for a set price, fix it up properly, and then sell it to make a profit.

You can do many things. “flip” Motorcycles are a great way to make a side income and have long been a popular choice for those looking for a profitable business. And it makes sense; motorcycles aren’t that complicated of machines and anyone who is willing to learn can flip a motorcycle successfully.

There are limitations to what you can do with such an activity. It is a great way for side income but you need to have certain licenses and certifications in order to make it a full-time job.

Before you think about starting a motorcycle flipping business, you’ll need to check with your state’s law and see how many vehicles you can sell within a 12 month period. Some states limit you to selling 1-2 vehicles per year, while others allow for up to 10-12. It is important to note that you can sell your car, ATV, and other motorized vehicles within the same 12-month period as a vehicle purchased from you.

Once you have checked with your state’s limits and have confirmed that you can sell a motorcycle within those limits, you can go ahead and start looking for a motorcycle to flip. You must bring the appropriate documents to your local DMV once you purchase a bike. Once it is registered, you can get a new title, with your name on it and you must pay sales tax. If you want to be legally compliant, this is a step that cannot be skipped.

You can start making modifications to the motorcycle after you get it registered. You don’t have to buy a motorcycle and make cheap repairs, then sell it with all the problems you can find. You can flip a motorcycle to buy it, make it work better and then sell it at a fair profit. Don’t be one of those flippers who sells a lemon.

This is considered a good practice and can be done occasionally. But if you’re serious about doing this more than a few times or even making a serious income from it, you’ll need to obtain a dealer’s license. A dealer’s license enables you to buy and sell as many motorcycles (or vehicles) as you would like within a 12 month period without any legal limits.

What is Illegal?

When it comes to motorcycle flipping, there are some things that have been done that are considered illegal in many states. It’s best you’re aware of what’s illegal so you don’t find yourself accidentally doing it.

First, it is important that you do not sell more vehicles within 12 months than your state permits. This doesn’t mean from January to December, it means any part of the fiscal year. You need to space yourself out and stay in compliance with your state’s law. The DMV can track how many motorcycles you’ve sold by the titles people submit with your name on it.

Common practice among motorcycle flippers is to purchase a motorcycle, not register it or pay sales taxes, and then later sell it. This is what we call “curbstoning” In most states, it is illegal. The difficult part about it is that people do this all the time without even knowing they’re doing something illegal. Each motorcycle that you buy or flip must be registered, title and tax paid

Lying about the functionality and specs of the motorcycle you’re trying to sell is also illegal. This also falls under the definition of curbstoning because you’re ultimately trying to make a buck off of a dishonest sale.

By selling too many vehicles within 12 months without a dealer’s license, not registering or paying sales tax, and getting complaints about selling lemons could get you a hefty fine from the state. In some cases, it’s possible to even face some jail time. If you’re going to do this, make sure you do it right and are compliant with your state’s laws.

What You Should Know About A Dealer’s License

If you’re interested in flipping and selling more motorcycles than what your state allows, your best route is to get a dealer’s license. Each state is a little different with their rules and regulations to get a dealer’s license, but most of them have the same basic set up.

Note that there are several types of dealer’s licenses such as new or used car, wholesale, and motorcycle licenses. Find the right type of license for you, and apply accordingly. You’ll need to contact your local DMV to fill out a dealer’s license application. You can submit one or five applications, depending on which state you are in.

The state will conduct a background investigation and likely request that you have your fingerprints taken. If you have any felonies on your record, that doesn’t necessarily mean you can’t get a dealer’s license. It depends on the type of crime you committed and whether it involved vehicles. You’ll likely be able to proceed if your criminal record didn’t have to do with cars (such as shoplifting, etc.).

Some states require that you have a business location in order to get a dealer’s license. And your garage or shed doesn’t count. It should be an area that can only be used to sell vehicles.

Lastly, you’ll also likely need to purchase some sort of Motor Vehicle Dealer bond. This bond protects your customers from dishonesty and allows them to file a claim against you. A Motor Vehicle Dealer bond is usually around $75,000, while a Motorcycle Dealer bond is around $10,000.

So as you can see, obtaining a dealer’s license isn’t necessarily easy but it should be seriously considered if you’d like to make a good income from flipping motorcycles. Otherwise, plan on doing only a few throughout the year and remain legal within your state’s limits.

Here are some tips to properly flip a motorcycle

You must be careful when flipping a bike. First, you’ll need to understand your skill set and know what you are and are not capable of fixing yourself. Look at motorcycles to buy according to what you’re willing to repair.

A key aspect of flipping is budget. If you don’t end up with more money than you started out with, the flip is considered a fail. Make a budget of how much you’re willing to spend and become familiar with how much certain fixes will be.

You should take your time looking for a motorcycle you want to flip. To make money you must wait and be patient for the right bike to come up for sale. If you wait patiently, the right motorcycle will be yours. You can find out more about how to turn a motorcycle into a profitable venture by clicking here.

This video series teaches you how to turn and repair a motorcycle. Included are in-depth videos with tips and tricks you won’t find anywhere else online. Click here for more information if you’re interested in flipping a motorcycle for a profit!

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