How do I Become a Car Dealer?
If you want to buy, sell, or trade cars for profit, you’ll need to become a car dealer. The first step in this process is learning the laws regarding dealer licensing in you area. You can contact your state’s Department of Motor Vehicles (DMV) for information. If you live in a place that does not have a DMV, look for a similar organization. The authority that handles business licensing in your area may be a good source of information as well. Depending on the laws of your particular area, you may have to pass a background check to become a car dealer. You may also have to meet certain requirements involving your credit score. In some places, you may even have to participate in a training program to become a car dealer. Additionally, some locations have laws that require car dealers to pay surety bonds, which can be an expensive part of becoming a car dealer; this type of bond protects consumers who buy from you. In a case of fraudulent or otherwise illegal business practices, it gives
This message has little VW/Audi Content, unless you view it generally. I live half of the time in South Central PA, close to the Manheim Auto Auction. Though to most this name may not mean much, this is the biggest auto auction in the US and dealers from across the nation attend. The trick is that it is for dealers only. In other words, to buy a car there, you need to be with a dealer and he/she actually needs to do the purchase. TONS of cars go across their block a week, and certain weeks are dedicated to certain makes. One week may be Ford, another GM, a third European cars etc. It is divided by credit companies mostly (GMAC etc.). I am greatly interested in having access to this auction for my own use and possibly for making extra money. What I need to do is get my dealer license from my state (in my case PA). Can anyone help me figure out how to go about doing so and what this costs? Webpages, phone numbers, addresses etc. are most appreciated. I am posting this to the list because
Just like any small business you need Capital to operate. You need a business plan. You need to secure a line of credit. You need a business license to operate legally in your location. As a used car dealer you’ll need a security bond. You need full coverage business insurance. You need to have a state tax ID number. In most states you also need a physical location, a building, proper signage and a business phone.
You usually have to buy a license from the state…can be $500 or more. The problem with having a dealer’s license is that now you sell cars as a dealer and have to back them up in most states…..prolly not something you want to get into. My brother-in-law in NJ was about to start doing this last Summer with a partner who owned a garage so that he could back up the cars. He died before he got it going, but my suspician is that he’s happier now than he would have been with all the headaches this would have brought. Like lots of other modern things…unless you’re ready to go full bore, the gov’t makes it tough.
