Some states may have limits. Some don't. In Tennessee, the only thing that gets enforced is how many you currently own. Don't know if there is a selling limit. I've never gotten a notice or anything. I know that you can only have 3 cars per person, up to 6 cars per house, unless you have 3 or more residents. When you hit 6 cars, you are limited to 2 cars a peice. And it is only enforced by insurance companies. Not the states or counties.
But as far as selling, I had a friend who sold and traded about 20 cars a year. He only had 2-3 cars in his possession at a time though, so he was clear. We just worked on them and fixed them up for hobby. Barely made anything. Just enough for dinner and to fix the next one.
Varies by state. Usually around 4-6 cars.
Most states have limits of like 5 per year but no real way of enforcing them. The laws usually talk about big fines but the reality is, if they catch you, they will just ask you to either become licensed or stop selling so many cars. The fines come in when you ignore them repeatedly.
It becomes problematic having to register every car in your name, pay sales taxes & title it. And then you are supposed to buy insurance for every car. And you may even need proof of it and liability only runs probably $30+ per month per car.
And you cant really deal with open titles when you buy from auctions.
To be a retail dealer, you have to have a car lot zoned for business and garage liability insurance is mandatory. So those expenses can make it expensive.
I did it about 27 years ago with nothing but maybe $5000 in cash, but I had been going to crummy auctions open to the public for months. Mostly watching.
I knew so little when I started its amazing I survived.
I started with a wholesale only license but back then they had no way of stopping me from selling at retail; Now they do. My state didn't require insurance back then, now they do. So its gotten more expensive.
I later faked a retail location & never got caught. I made a living just buying & flipping cars mostly on the side of the road. That too has changed and its not permitted like it used to be.
I didn't have a shop and I had no mechanical aptitude whatsoever so if you can work on you should do better than I did. And I did ok for a number of years as I got better at it.
I was very lucky too in that I never had insurance and never had a serious wreck. A few minor fender benders where I just paid cash out of pocket for the small amounts.
In hindsight, if I would have caused a big wreck early on without insurance and couldn't pay for it, I would have lost my drivers license and dealers license and couldn't even have legally drove for a number of years. So it really could have screwed me up.
I don't even dabble anymore. The cost of insurance and a car lot makes part time not really fruitful.
The biggest thing to learn is car values. Takes time & experience & you learn from your mistakes. I made a lot of them but the good deals made up for the bad.
Also had good fortune investing in the market during my car dealer years. I thought it was brains, it may have been a bull market. Because my investing results haven't been as good since I retired from being a car dealer. (At about 40)
What helped me is I lived at home with my parents for the first 3-4 years and that really helped me build up my capital base. And I remained single so I didn't need a lot to live on. And I often worked nights & weekends when other car dealers are closed. I rather enjoyed it especially at first. And spent a lot of time on it. Going to several auctions a week just to stay up with car values and buying from a few new car dealers too. And keeping up with all the cars I had spread out all over town was a challenge. Keeping them clean & moving them around.
I would suggest spending all your time & energy on MAKING MONEY on 5 cars and if you can do that, worry about the rest. Chances are, you will find, as many do, its not quite as easy as you might think. But its possible.
In most states the limit is 4 sales per year. But as most have already said, this is a state law and every state sets their own rules.
ck with ur state.. 50 states,,,50 sets of rules