Buying and Selling used bikes in MA

[StumpyNB]

So I've been contemplating for a while trying to buy used bikes that need a little work, fixing them up, and re-selling them. One of the potential problems I'm thinking I might run into, is test driving them after I've bought them and fixed them. Technically I'd have to register each one to be able to drive it. I can't just slap the plate from my primary bike on and go for a spin (I know a lot of people do, but its illegal) and I can't get a repair plate without an actual business.

Either way, the costs of registering these bikes would likely kill whatever profit I might make on them. I'm curious if anyone knows any ways around this, and if anyone else has done this with any measure of success. And lastly if there are any words of wisdom for me.

[TheIglu]

To do it legally, you need to either pay sales tax and title transfer on each one, or get a dealers license.

[boosten lebaron]

I used to flip bikes as a pretty good side business. I live in a rural area without much of a police department so I would go on short runs on attached plates. If I really wanted to take it on a trip I would call my insurance company to transfer plates off one of my other bike to it and take it out. You have several days to actually register it but I never would. A day or two later I would call them up and switch it back to the original bike. I'm sure there is a limit to this behavior but I never got in trouble. I probably did 10-15 swaps like this. I actually just did it 3 times about 2 months ago in the course of a week. I really intended to register the bike each time but sold it before I could get to the rmv.

[Garandman]

If you sell more than four vehicles per year in MA (5 in ME or NH, 12 in VT) you are required to get a dealer license. I believe failure to do so is considered "A false or deceptive practice." In most states the law is written so that once you pass the threshold you are a dealer and will be treated accordingly.

Got burned once so I will not buy from or sell to flippers, who have blossomed on CL. Most towns charge a couple hundred a year and you have to post a bond, but there are many advantages in terms of buying parts, going to auctions, tax treatment of tool purchases and the part of your home used solely for business, etc.

[duganc1717]

So I've been contemplating for a while trying to buy used bikes that need a little work, fixing them up, and re-selling them. One of the potential problems I'm thinking I might run into, is test driving them after I've bought them and fixed them. Technically I'd have to register each one to be able to drive it. I can't just slap the plate from my primary bike on and go for a spin (I know a lot of people do, but its illegal) and I can't get a repair plate without an actual business.

Either way, the costs of registering these bikes would likely kill whatever profit I might make on them. I'm curious if anyone knows any ways around this, and if anyone else has done this with any measure of success. And lastly if there are any words of wisdom for me.

This is why I stopped selling motorcycles, I sold 7-8 in a year back around 2009-2010. Between the cost to register the bike and the titleit just ate too much into profits. The dealer license went no where very quickly.

[aldend123]

Class II requires a $25k bond, and seems like a full on used car dealership if you go by the book. But I couldn't find much on Class III in a 30 second google. Anyone know about that? Seems like it's up to the town to approve, but I couldn't tell if a bond or separate business location was required. Seems like it's actually pretty straight forward. FYI, an LLC is probably the simplest business license but will cost $500/year in MA.

https://malegislature.gov/Laws/Gener...r140/Section58
(d) Class 3. A person whose principal business is the buying of second hand motor vehicles for the purpose of remodeling, taking apart or rebuilding and selling the same, or the buying or selling of parts of second hand motor vehicles or tires, or the assembling of second hand motor vehicle parts may be granted a motor vehicle junk license.

But at the top it says: "Section 58. (a) Licenses granted under sections 59 and 59A shall be classified in accordance with subsections (b) to (d), inclusive. " Does that mean all the requirements for Class II also extend to Class III?

[breakdirt916]

buy/sell the loosely reg'd dirtbikes

I made a few thousand bucks last year in socal...but MA wouldn't be much different

just do it...try the buy/sell thing until you get sick of it

[StumpyNB]

One of the things I read that very quickly disqualifies any sort of dealer license ideas. In MA you must have some sort of retail presence, and that must be its primary purpose, it specifically disqualifies anyone doing it out of their home.

[breakdirt916]

ya...sort of similar in CA

I looked into it as well...and it never added up for me because I needed to have a physical address of a storage location of the bikes w' written permission from the property owner - renting this space would easily cancel out most of the profits I made.

Also I'd had to pay an annual fee to have a dealer license...and I'd have to offer a warranty and pay taxes on earnings

It would make sense if I did it full time, moved stuff high volume, or had a higher margin, but making a few hundred bucks off a dirt bike was better off the books. Full time not worth it...I make more $$ per hour just picking up an extra shift at work for triple digits/hr So for me, I bought it, fixed it up over a few months, rode the piss out of it, let friends crash it, then sold it at a profit = get paid $500-$1000 to beat up a new bike for a few months! then take the profits to do it all over again! Sure beats renting!

did it a year, then got sick of it...rather be riding then wrenching *too* much. As a matter of fact, the last bike has been dropped off at a mechanic for a bottom/top end job