The California DMV's Occupational Licensing is pretty clear on this one.
If you intend to sell even a single vehicle "with the intention to make a profit" you need a dealer license. A wholesale license allows you to sell to other dealers, a retail license allows you to sell to the public.
If the vehicles are titled in your name (and taxes paid), it's very unlikely you would ever be confronted by the DMV.
You'll show up somewhere / get caught when you're trying to re-sell a vehicle that is currently in someone else's name. This would require you to forge a new bill of sale for the next buyer.
You can only sell 3 cars per year before needing a dealers license.
You can sell 3 without needing a dealers license. If you sell that 4th car you re considered a dealer and need a license.
5
trying to help a friend with the answer to this question
According to the omaha dmv, the answer is seven.
Three or more Vehicles sold in a 12 month period requires a Dealers License. http://www.flhsmv.gov/dmv/dealer.html
Not sure about ND but it is 3 cars a year in some states.
Here is a link to how many by state:http://dmvanswers.com/questions/2529/How-many-vehicles-can-I-sell-a-year-before-I-have-to-get-an-auto-dealers-license
You don't have to get the license BEFORE you live in California. You do, however, have to get it fairly quickly afterward: you must get a California license within 10 days of becoming a California resident. Certain people are not considered "residents" and are exempt from this, such as military personnel who happen to be stationed in California.
I don't know if this answer will help, but in Canada it doesn't matter how many you sell in a year all that matters is how many you are selling at any given time. In the province of BC, if you are actively selling more than 4 vehicles at once, you need a dealer license.
You can own as many as you want. However you can sell 4 before you need a dealers license. Sell that 5th car and you need a license.
http://www.dmv.org/az-arizona/dealer-licensing.php Anyone who sells, exchanges, or accepts trade-ins for new cars or buys used cars to resell them, or who sells four or more used cars in a 12-month period, must have a dealer license and renew it annually.