Washington state laws make obtaining a wholesale auto dealer license relatively easy. But transportation regulators from around the country say those licenses are fueling illegal auto schemes and hurting consumers.
KING 5 found that wholesale dealers often rent office space without ever visiting the state and some even use third party companies to apply for their licenses.
How to Sell a Vehicle Online in Washington
While many people sell their cars through dealerships, there are also those that choose to go the private sale route. This gives you the opportunity to get a higher price for your vehicle and avoids dealing with a dealer. However, it can be a more complicated process because you will be responsible for completing all of the necessary paperwork. To ensure that everything goes smoothly, there are a few things to keep in mind when selling a car in Washington.
First, you need to make sure that you have all of the necessary documents. This includes the title, registration, and a bill of sale. Once you have all of these, it is time to start advertising your car. To attract more potential buyers, be sure to include a description of the vehicle and its condition. You can also add images of the vehicle to your listing.
After you have received a bid from a buyer, be sure to complete the sale. You will need to provide the buyer with a copy of the vehicle’s title and the signatures of both the seller and the buyer. The odometer reading should also be recorded on the document. If there is a lien on the vehicle, you will need to release it before the title can be transferred.
If you are selling your car to a private buyer, you may want to consider getting a pre-sale inspection. This can help reassure the buyer that the vehicle is in good condition and free of any issues. If you decide to do this, be sure to schedule the inspection and prepare for any repairs ahead of time.
When you have completed the sale, you will need to cancel your personal plates and registration with the Department of Licensing and notify your insurance company that you have sold the vehicle. It is also a good idea to keep copies of all of the relevant documents.
While a car inspection is not required in Washington, it can be helpful to reassure potential buyers and prevent any issues down the road. It is also a good idea to clean the vehicle before you hand it over and remove any personal belongings.
Report of Sale
If you are selling a vehicle in Washington, you will need to complete a dealer report of sale. This is important because it conveys to the state that the vehicle has changed ownership, and it protects sellers from being held responsible for infractions committed by the new owner. The form will require information about the car, including its make, model, and identification number. It will also list the date of sale and the names, addresses, and signatures of the buyer and seller.
KING 5 has learned that transportation regulators from other states are calling on the state to fix its wholesale dealer license, which allows dealers to buy vehicles at auctions and then sell them directly to consumers. These complaints allege that a growing number of wholesale dealers have been engaging in illegal auto schemes and committing crimes. It has been difficult for the department to take action because it is tough to prosecute dealers if their activities occur outside of Washington.
While legislature attempted to tighten up requirements for obtaining the wholesale dealer license, it still attracted individuals intent on bending the rules. In fact, KING 5 found that in just three years, applications for this license increased more than 800%, and many of those holders do not even live in the state. In fact, 112 holders of this license share one address in a small town in eastern Washington to conduct business.
A dealer report of sale will help the DOL track vehicle transfers and determine if the person selling the vehicle is licensed. It will also allow the DOL to verify that the vehicle is not being transferred to someone who is not allowed to operate it. The form will require the name, address, and date of birth for each person involved in the transaction. The DOL will also need a copy of the bill of sale.
Taxes
Most vehicle purchases in Washington are subject to taxes at the state and local levels. These taxes are typically added to the purchase price of a car, and can be as high as 4% in some counties. When buying a car in Washington, it is important to add these taxes into the total purchase price to ensure that you are paying the correct amount of money. This includes any discounts or trade-ins. Additionally, many dealers offer manufacturer and dealer rebates that can lower the taxable purchase price of a new vehicle.
In addition to sales tax, vehicle purchasers may also be responsible for paying registration, title, and plate fees. These fees are typically included in the vehicle purchase price, and can be found on the Department of Motor Vehicles website.
While most people who buy vehicles in Washington will pay sales tax and other fees, there are some situations in which a person may be exempt from paying these taxes. For example, a person who claims dual residency in Washington and another state may be exempt from paying retail sales tax and B&O tax on a vehicle purchase if the dealer delivers the vehicle to them at a location outside of the state.
However, the buyer must document this delivery and provide a completed Declaration for a Dealer Selling a Vehicle to an Individual to claim this exemption. This documentation can be submitted to the Department of Revenue along with proof that the vehicle has been delivered to the buyer’s address outside of the state of Washington.
On Oct. 20, Hazlegrove emailed Robinson and key legislative committee staffers to suggest language for the auto dealership exemption, but it was not included in the bill. However, he is confident that lawmakers will ultimately pass the legislation, and that it will be beneficial for the industry.
A person who regularly sells vehicles to consumers in Washington must obtain a license to do so from the Department of Licensing (DOL). This is known as a vehicle dealer’s endorsement. This license is necessary to be able to sell cars and other vehicles to consumers in the state. In order to be a vehicle dealer, a person must complete a background check, pass an examination administered by DOL, and meet other requirements.
Insurance
Insurance rates can affect the price of a vehicle sold online in Washington. The cost of auto insurance depends on the type and amount of coverage, your driving history, and the car you drive. Your ZIP code may also have an impact on your car insurance rates. A high theft rate in a particular area can result in higher premiums, as can a high number of natural disasters.
The state of Washington requires all drivers to have a minimum of liability coverage for bodily injury and property damage, but many drivers choose to add optional collision and comprehensive coverage as well. The cost of these options can vary, but you should be aware that a high deductible can significantly reduce your car insurance costs.
Similar to most states, car insurance rates in Washington are based on several factors specific to the driver. Drivers under the age of 18 typically pay more for their coverage since they are unable to be on their parents’ policy. These rates decrease as the driver ages, with a typical flattening around age 30. Drivers with a clean driving record tend to have lower rates than those with multiple traffic violations or other infractions.
A credit score can also impact your car insurance rates in Washington. Insurers believe that a high credit rating is an indicator that you will be able to pay your monthly premium on time. A low credit rating, on the other hand, may indicate that you have a difficult time paying your bills. As a result, your insurance rates will likely be higher than those of a driver with an excellent credit score. Additionally, some cars are more expensive to insure than others because of possible high repair or replacement costs.