can ca repair shops sell cars

[OAniyah]

Yes, in most states, a car repair shop can sell cars, but it's not as simple as just putting a "For Sale" sign on a vehicle. The primary distinction lies in whether they are selling cars as a primary business or disposing of a few customer-abandoned vehicles. To operate as a full-time car dealer, a repair shop must obtain a specific dealer's license from their state's Department of Motor Vehicles (DMV) or equivalent agency, which involves meeting strict requirements for a permanent place of business, zoning, bonding, and insurance.

However, many repair shops occasionally sell cars that have been abandoned by customers. When a customer fails to pay a large repair bill and abandons the vehicle, the shop can typically place a mechanic's lien on it. After following a strict legal process, which includes notifying the owner and a public auction in many cases, the shop can gain legal title and sell the car. This is fundamentally different from acting as a dealership.

The table below outlines key considerations for a repair shop looking to sell cars:

Consideration	Selling as a Licensed Dealer	Selling via Mechanic's Lien (Abandoned Vehicles)
Legal Requirement	Must obtain a state-issued dealer's license.	Must follow specific state lien laws and procedures.
Volume of Sales	High, continuous sales as a primary business.	Low, infrequent sales of specific abandoned units.
Typical Source of Cars	Auctions, trade-ins, wholesale purchases.	Customer vehicles left unpaid at the shop.
Key Challenge	High startup costs, licensing fees, and inventory management.	Lengthy legal process to gain clear title; potential for low profit.
Consumer Perception	May be viewed with skepticism compared to established dealers.	Sold "as-is" with no warranty; transparency about the car's history is critical.

For a repair shop, the more viable path is often to partner with a local licensed dealer. The shop can perform reconditioning work (detailing, minor repairs) on the dealer's used cars, creating a revenue stream without the burden of licensing and inventory risk. Attempting to become a full-scale dealer requires a significant business model shift and capital investment.

[Felix]

From a legal standpoint, it's a gray area that depends entirely on volume and intent. A shop can usually sell a car left behind by a customer after jumping through the legal hoops of a mechanic's lien. But if they start regularly buying and selling cars from auctions without a dealer's license, they're crossing a line. Most states draw a clear distinction between liquidating an asset you legally obtained and operating as an unlicensed dealership. The latter can lead to heavy fines.

[RosalieLynn]

As a customer, I'd be cautious. I trust my local mechanic to fix my car, not necessarily to be a used car expert. If they're selling a car, I'd want to know its full story—was it a lien sale? Why did the previous owner abandon it? A good shop will be completely transparent. The big question is warranty; a dealership often provides a short-term warranty, but a repair shop will almost always sell the car "as-is," which is a much bigger risk for me as a buyer.

[KeiraDella]

It's a tough business move. The profit margin on selling a few lien cars is usually low after all the legal fees and effort. To make it worthwhile, a shop would need to become a real dealer, which means dealing with inventory, salespeople, and a whole new set of regulations. It often makes more sense to stick to what you're best at—repairs—and maybe form a referral partnership with a reputable dealer instead of competing with them directly.

[LeStephanie]

Think of it like this: a restaurant can sell you a meal, but that doesn't mean it's a grocery store. Similarly, a repair shop's main job is service. Selling the occasional car from a lien sale is like a restaurant selling off unused equipment. It's an exception, not their core business. To become a "grocery store" for cars (a dealership), they need a different license, a showroom, and a focus on sales, which is a completely different operation from turning wrenches.