This question is specific to the laws of Colorado.

Question: as a private-party, does the state of Colorado put a limit
on the number of cars I can buy and/or sell a year without being
considered a dealer.

Situation:  I have a friend--who is a dealer--who buys me cars at an
auction for near or below wholesale.  He then sells the car to me.  I
anticipate that I can sell the car as a private individual for about a
$2000 to $3000 profit.  I have heard though that the state puts a
limit on the number of cars one can buy and/or sell so that this type
of transaction does not happen too often.  Is this the case?  Also, in
the same vein, does the state put a minimum time between the purchase
and sale of a car?

Finally, if I put one car in my name and the next in my wife's name,
does any limit get applied to each of us individually.

In your answer, please point me to specific websites on Colorado
government websites.

Hi kent44p,

If you, or anyone in hour household; sells, or offers to sell, three
or more vehicles in one calendar year --from the same address or phone
number, you are deemed a dealer.

REFERENCE:

I have underscored the relevant portions for you to scan to them quickly.

HERE IS THE STATUTE:

Colorado Statutes : TITLE 12 PROFESSIONS AND OCCUPATIONS : GENERAL :
ARTICLE 6 AUTOMOBILES : PART 1 AUTOMOBILE DEALERS : 12-6-102.
Definitions.
http://198.187.128.12/colorado/lpext.dll?f=templates&fn=fs-main.htm&2.0
Note, this link is the entry page to the statutes site which is in
frames. To see this sttatute yourself you will need to follow the
trail beginning with TITLE 12 PROFESSIONS AND OCCUPATIONS, next
selecting GENERAL, etc...

HERE IS THE RELEVANT PORTION:

..."(13) "Motor vehicle dealer" means a person who, for commission or
with intent to make a profit or gain of money or other thing of value,
sells, leases, exchanges, rents with option to purchase, offers, or
attempts to negotiate a sale, lease, or exchange of an interest in new
or new and used motor vehicles or who is engaged wholly or in part in
the business of selling or leasing new or new and used motor vehicles,
whether or not such motor vehicles are owned by such person. ____The
sale or lease of three or more new or new and used motor vehicles or
the offering for sale or lease of more than three new or new and used
motor vehicles at the same address or telephone number in any one
calendar year shall be prima facie evidence that a person is engaged
in the business of selling or leasing new or new and used motor
vehicles.____ "Motor vehicle dealer" includes an owner of real
property who allows more than three new or new and used motor vehicles
to be offered for sale or lease on such property during one calendar
year unless said property is leased to a licensed motor vehicle
dealer.____ ..."

================================================================

You asked:  ...does the state put a minimum time between the purchase
and sale of a car?

Answer, NO, there is a maximum of 2 per year, once you offer for sale
or sell the third vehicle, you are deemed a dealer.

================================================================

You asked: ...I put one car in my name and the next in my wife's name,
does any limit get applied to each of us individually.

Answer: The rule is the same address or phone number. If you and your
wife use the same information on the Car Titles, you will be deemed a
dealer if youi offer a third car for sale in any one calendar year.

================================================================

I have linked you to the statutes above, and below are the links that
discuss the vehicle dealer licensing:


Motor Vehicle Dealer License Requirements
http://www.revenue.state.co.us/dlr/wrap.asp?incl=dlrreq

Dealer/Wholesaler Application Information
http://www.revenue.state.co.us/dlr/pdfs/dealerinfosheet.pdf

================================================================

If I can be of further assistance, please don'y hesitate to ask via
the clarification feature.


~~Cynthia


Search strategy used at Google:
I searched the Colorado Statutes starting here:
http://198.187.128.12/colorado/lpext.dll?f=templates&fn=fs-main.htm&2.0

Thank you.  That is exactly the type of answer I wanted.  By the way,
on the note from the other person about me being scum for doing this,
please be aware that I would be up-front about the source of the car
in any transaction as well as the quality of the car.  (For what it's
worth)

What you are doing is called curbstoning, if memory serves. You are
selling a car to an unsuspecting person who believes you to be a
regular ol' schmo with his dear departed grandmother's car, the Little
Old Lady Who Only Drove To Church On Sunday of yore, but you are, in
fact, a shyster used car dealer who should be hunted down like the
rodent you are. Fortunately, any moderately intelligent car buyer
could see through your deception by a few questions or examination of
your documents, though you probably have a nice cover story for them,
one that involves your charitable work with kittens and orphans, or
orphaned kittens or something. You are one step away from a plaid
polyester jacket with a white belt and matching shoes, giving a quick
zap of Binaca before you meet the "mark." My goodness, have you no
scruples at all? Congratulations, you've tumbled into the only
profession that is more reviled than lawyer... with the possible
exception of parking meter maid.

Okay, sorry, I was off my meds there for a minute. We now return you
to your regularly scheduled comment.

Why not work for your friend part time? He can get you a dealer's
license and you can sell to your heart's content on weekends.

To markvmd-ga:

I find your comments intriguing and they have made me evaluate whether
I want to go about my plans and if so, how.  I'm interested in your
further perspectives with a little more explanation from me.

Had my original note indicated that I would be entirely up-front to
the buyer about the car coming from an auction, how would you have
responded?  If I were to tell you that I would be holding on to the
car for anywhere from 3 to 12 months before selling it, would that
change your advice to me?

I look forward to your perspective as I am still evaluating whether to proceed.

kent44p, Thank you so much for the kind words, the 5 stars and the generous tip!

~~Cynthia

Kent44p--

It was meant to be toungue-in-cheek, hence the "We now return you
to your regularly scheduled comment" comment.

It is unscrupulous curbstoners that caused the necessity to coin the
term as well as forcing the need for regulations such as those in your
state. I daresay Colorado may have the most restrictive rules for
selling cars. Considering the way I used to go through cars in my
youth, I would have run afoul of Colorado law had I the sense to live
there.

I repeat my suggestion to work for your friend rather than go it
alone. Selling cars is fun (well, new cars anyway) and entertaining
despite the occasional holdup or theft.