How many cars can you sell in Tennessee without a dealer license?
Last verified: November 9, 2026. Every rule links to its official source.
Tennessee lets an individual sell “up to five (5) used motor vehicles or recreational vehicles” “registered and titled in his/her name within a twelve (12) month period” without a dealer license (rule 0960-01-.20). A sixth sale is a violation. A household counts as one individual, cars titled to someone else are off limits, and civil penalties run $100 to $5,000 per day or act.
The short version
| What | The rule | Source |
|---|---|---|
| The line | Up to 5 used vehicles titled in your name within a 12-month period | Rule 0960-01-.20 |
| One seller | Everyone “living together in a single household” | Rule 0960-01-.20 |
| Someone else’s car | Selling vehicles titled in a third party’s name “is strictly prohibited” | Rule 0960-01-.20 |
| Civil penalty | $100 to $5,000 for each day or each act of violation | Rule 0960-01-.13 |
What counts toward Tennessee’s five-car limit?
Used vehicles registered and titled in your name that you sell within a 12-month period, counted across your household.
- Your household is one seller. The rule’s “individual” includes “any person or persons” “living together in a single household”.
- Only your own titled cars. Selling vehicles “titled in a third party’s name is strictly prohibited”.
- Offering counts. The Motor Vehicle Commission’s dealer page says anyone selling or offering to sell more than 5 vehicles in a year must be licensed.
- The window. The curbstoning statute counts “any twelve-month period”, so a new calendar year does not reset the count.
What is curbstoning in Tennessee?
Tennessee’s MOTION Act of 2025 defines curbstoning (T.C.A. 55-31-102(8), Public Chapter 457 of 2025). Curbstoning includes selling “More than five (5) motor vehicles in any twelve-month period when the motor vehicles are titled in the person’s name” by an unlicensed person “engaged primarily in the sale of used motor vehicles”. Selling without a properly endorsed title also counts.
Law enforcement may take a vehicle used in curbstoning into custody, after 48 hours’ notice on the vehicle if it is on residential property. The vehicle is subject to seizure and forfeiture.
What is the penalty for selling cars without a dealer license in Tennessee?
Civil penalties, a court order and, for willful, knowing and persistent violations, a misdemeanor; a vehicle used in curbstoning can also be forfeited. Rule 0960-01-.20 treats a sale beyond 5 in 12 months as a violation “for engaging in the unlicensed sale”.
| Consequence | What the law says | Who it applies to |
|---|---|---|
| Civil penalty | At least $100 and up to $5,000 “for each day of violation or for each act of violation” (rule 0960-01-.13) | Anyone, including an unlicensed seller |
| Court order | The Commission sues through the Attorney General; injunctions issue “without bond or other undertaking” (T.C.A. 55-17-117) | Anyone |
| Misdemeanor | “willfully, knowingly and persistently” violating the dealer law is a “Class C misdemeanor” (T.C.A. 55-17-117) | Anyone |
Open titles are a separate offense: possessing a signed title “without the name of the transferee appearing” is a Class C misdemeanor (Department of Revenue dealer manual).
Are there exceptions to Tennessee’s dealer license?
A few, each tied to a specific kind of sale. T.C.A. 55-17-120 lists exceptions for state vehicle auctions, heavy equipment and farm auctions, salvage auction buyers and going-out-of-business sales.
The antique and unique vehicle auction exception. Until June 30, 2027, a dealer license is also not required to buy or sell a previously titled antique vehicle at least 25 years old, or a unique vehicle, “through an auction format” (Public Chapter 540 of 2026). It applies only if every one of these is true:
- The auction is at a venue with permanent seating for at least 20,000.
- The venue is in a county of 147,700 to 147,800 people (2020 census).
- The operator holds no more than one Tennessee auction a year.
- The auction offers 400 to 2,000 vehicles.
- The operator has a net worth of at least $25,000,000.
The exception “is deleted on June 30, 2027, unless reenacted or extended”. It is not a general exception for antique cars, and it does not cover private sales.
How can you legally sell more than five cars a year in Tennessee?
Get a dealer license from the Motor Vehicle Commission. One license covers new and used vehicles, and the Commission’s license and fee pages list no separate wholesale dealer class.
The application fee is $600. The dealer page asks for a permanent building of at least 288 square feet with a restroom, never a residence, and a lot for 15 vehicles. You also need a $50,000 surety bond, $300,000 garage liability insurance, a CPA-compiled statement showing $10,000 net worth, and a licensed salesperson.
A motor vehicle auction license is not a shortcut: auctions are “strictly wholesale, by and between licensed auto dealers” (TMVC: auction license).
If you are close to the line
- Count the last 12 months for everyone in your household, with dates.
- Sell only cars titled in your name.
- Hold the sixth car until you are licensed. The step-by-step Tennessee licensing guide covers each form and fee, and How to start a used car dealership in Tennessee shows the whole path.
If you will finance your own customers, read Financing your own sales in Tennessee first.
What trips people up
- Counting per person. One household shares one limit of 5.
- Selling for a friend. Cars titled in someone else’s name are off limits.
- Counting by calendar year. The statute uses “any twelve-month period”.
- Reading the antique auction rule as an antique exception. It covers one narrow auction format and ends June 30, 2027 unless extended.
What changed recently
- 2026. Public Chapter 540 added the narrow antique and unique vehicle auction exception, which ends June 30, 2027 unless extended.
- October 22, 2025. A one-county festival-auction exception from Public Chapter 60 of 2025 was repealed.
- September 15, 2025. The dealer license fee rose from $400 to $600 (TMVC Notice 6-25-25).
Frequently asked questions
Does everyone in my household get five sales?
No. Tennessee’s rule defines “individual” to include any person or persons living together in a single household, so the household shares one limit of 5 used vehicles within a 12-month period. A sixth sale can bring civil penalties of $100 to $5,000 per day or per act.
Can I sell a car for a friend or relative in Tennessee?
Not on their title. The Motor Vehicle Commission’s rule on individual sales says selling vehicles titled in a third party’s name is strictly prohibited. The allowance covers only vehicles registered and titled in your own name, up to 5 within a 12-month period.
Is there a wholesale dealer license in Tennessee?
The Motor Vehicle Commission’s license and fee pages list no separate wholesale dealer or broker class, and one dealer license covers new and used vehicles. A motor vehicle auction license exists, but those auctions are strictly wholesale between licensed dealers, so it does not let you sell to the public.
Can I sell antique cars in Tennessee without a dealer license?
Not as a general rule. A 2026 law exempts antique and unique vehicle sales only through one narrowly defined auction format, with conditions that include a venue seating at least 20,000 and an operator worth at least $25,000,000. It ends June 30, 2027 unless extended.
Can police take a car used for curbstoning?
Yes. The MOTION Act of 2025 lets law enforcement take a vehicle used in curbstoning into custody and makes it subject to seizure and forfeiture. On residential property, notice must first be left on the vehicle for 48 hours, and local governments may set stricter rules.
Your next step
Get the one-page Tennessee dealer license checklist: every form, fee and office in order, sent to your email.
When your application is in, you can set up your lot in LeftLane or book a LeftLane demo while you wait. LeftLane is a dealer management system for independent and buy-here-pay-here dealers, and real people answer the phone at 512-222-9549.
Sources
- Secretary of State: Rules chapter 0960-01, June 2026
- Acts: Public Chapter 457 of 2025, Public Chapter 540 of 2026 and Public Chapter 60 of 2025
- T.C.A., unofficial copies on Justia: 55-17-117 and 55-17-120
- Motor Vehicle Commission: dealer, salesperson, auction, fees, Notice 6-25-25
- Department of Revenue: Automobile Dealership Manual
This guide is general information for dealers, not legal advice. Rules and fees change. Confirm with the agency or a licensed attorney in your state before you act.