Texas is a very big state, and reliable vehicles are a necessity for getting around its wide-open spaces. With so many Texans owning motor vehicles, the auto sales industry boasts high-volume turnover.
To regulate this trade, the state subjects Texas automobile dealers to many legal restrictions and requirements. Number one among the requirements is that you fill out application forms―stacks of them.
The Texas Department of Transportation offers a dealer manual, and a dealer an Independent (GDN) Licensing page that will help you understand all requirements and regulations.
General Distinguishing Number
For a new dealer in Texas, the first step is to obtain a General Distinguishing Number (GDN). This requires, among other things, a permanent place of business, signage in accordance with regulations, and sufficient space to display the required number of vehicles of the type you intend to sell.
You’ll need a GDN whether you sell new cars or used. If you also (or instead) sell motorcycles, RVs, or other trailers, you’ll need a separate GDN for each class of vehicle.
The necessary forms can be downloaded in PDF format from the Texas Department of Motor Vehicles licensing forms page.
Note that franchise dealers (new vehicles) and independent dealers (used vehicles) have different forms and instructions, so be sure to download the appropriate files. The licensing forms page also provides handy links to the portions of the Texas legal code that apply to both new and used auto dealers, so it’s quite a useful resource.
Each license type has an information packet that walks you through the application process. Detailed information can be found at the DMV’s Dealer License Application Process webpage.
- Once the application is received, your payment will be processed.
- Applications are then scanned into the system and a Work Item Number will be given.
- A confirmation e-mail containing the work item number and some other basic information will be sent to you.
- Licensing specialists will next review your applications and approve the information submitted or write deficiencies if more information is needed.
- If there are any deficiencies, the licensing specialist will contact you by phone or e-mail and ask for more information.
- Once your license is approved, it will be printed and mailed (along with your dealer plates, if any) to your Texas mailing address listed on your GDN application.
Additional License Types
Other dealer business licenses offered by the Department of Motor Vehicles include:
- Independent Motor Vehicle
- Independent Motorcycle
- Travel Trailer
- Wholesale Dealers
- Wholesale Motor Vehicle Auction
- Independent Mobility Motor Vehicle Dealer License
Learn more on the TX DPS Independent (GDN) License page.
Applicants may benefit from networking with the major car dealer associations in Texas during the application process. These organizations also offer seminars, classes, and other support for would-be dealers. The Texas Independent Automobile Dealers Association specializes in used car dealers, while the Texas Automobile Dealers Association primarily serves the franchised new car dealer community.
The State of Texas also offers seminars designed to guide dealer applicants through the process and make sure they have enough information to operate their businesses in accordance with the many laws that apply to them. Read our Dealer-Related Information article for more details.
How to Get an Auto Dealer’s License With No Storage Lot
When states require a car auction license, this usually means you’ll need both a car dealer’s license, which allows you to sell cars commercially, and a separate auction license if your state requires one. Both are state issued, though some municipalities may also require their own additional licenses such as wholesale or franchise dealer, and specific guidelines vary from state to state.
Determine if you need a car dealer’s license. Each state has its own regulations that specify the maximum number of cars per year you can sell without a dealer license. In New York, for example, it’s up to four cars annually. If you want to sell more cars per year than your state’s unlicensed maximum, you will need a dealer license.
Meet all of the prerequisites required by your state for an auto dealer’s license. Proof you’ve met these conditions will have to be attached to your application. Each state is different, but generally, these prerequisites include:
- Physical showroom or office, depending on whether you intend to sell retail or wholesale, that meets any specified square footage and zoning requirements
- Sign, in compliance with signage zoning laws
- Surety bond, the required amount of which may differ if you plan to have more than one location and whether you employ salespeople
- Business name registration, if you’re going to use a name for your auto sales/auction business other than the one on your birth certificate
- Copies of your articles of incorporation, if you’ve filed as a corporation with your state division of corporations
- Liability insurance, in the amount required by your state
- Trader licenses from both your municipality and your county, if they are required
- Proof of completion of your state’s licensing course, if required
- Proof of an inspection conducted of your showroom or office, signed off on by an inspector from the state licensing agency.
Send your application with all required supporting documents to the appropriate agency for your state. For example, New York auto dealer licenses are issued by the Bureau of Consumer and Facility Services, and in North Carolina they are issued by the North Carolina License and Theft Bureau. Include any fees your state requires at this time, such as a license application fee, license certificate fee, sales representative fee and dealer license plate fees.
Apply to the IRS for an Employer Identification Number, and to your state department of revenue for a sales tax ID, which will allow you to collect and submit the required taxes on any sales you make.
Investigate whether you need a separate auction license or not; again, each state is different. In Florida, you don’t need a license to auction automobiles, if the auction is restricted to automobile dealers and it is conducted by a licensed auctioneer. If you want to auction cars to the public, you need an auction license.
Secure an auction license, if your state requires one. In some jurisdictions municipalities also require their own licenses on top of those which the state requires. Requirements for an auction license vary from state to state. The Florida Department of Business and Professional Regulation’s Board of Auctioneers, for example, requires that you be at least 18 years old and have completed either one year of apprenticeship or 80 hours of classroom training in an approved educational program. You may also have to take an exam, or receive an endorsement from the Florida Department of Business and Professional Regulation if you have an existing license from another state.
How to Get an Auto Dealer’s License With No Storage Lot
For many people, a car is more than just a way to get from point A to point B. Some people rely heavily on their cars to get to work or to take care of their families, while others use their cars purely for pleasure, spending hours ensuring they are shiny and clean. When purchasing a car, most people buy new or used vehicles from car dealers, who act as the middleman between the car manufacturer and the end consumer.
In Ontario, Canada, becoming a car dealer has several strict requirements. The governing body for car dealers is the Ontario Motor Vehicle Industry Council (OMVIC), which issues the required licenses for dealers. There are a series of requirements you must meet, in addition to applications and fees that need to be paid. Dealers are required to take an Automotive Certification Course. The goals of the OMVIC are to protect consumers and ensure fair and open competition for registered motor vehicle dealers.
Understand the Requirements
If you’re planning to open up as a sole proprietor, partnership, limited partnership or corporation, you’ll need to fill out the Business Application form. The processing fee is CAD$500 with an annual fee of CAD$250. If you’re looking to become a new salesperson or individual associated with a new dealer, then you’ll need to focus on the Individual Application. The processing fee is CAD$250 with a renewal fee of CAD$175 due every two years. With your Individual Application, you’ll also have to request a BackCheck report, which is pre-employment screening required by the OMVIC.
Complete the Course
All dealers and salespersons are required to complete OMVIC’s Certification Course, which is run by the OMVIC and the Automotive Business School of Canada at Georgian College in Barrie, Ontario. You have the option to take the course through correspondence or in person at the college, and there is a fee associated with the course separate from your application fee. There is a multiple-choice test at the end of the course which all dealers and salespersons are required to pass with at least a 60-percent grade. You have the option to wait to take the course until your application is ready for approval.
Send In and Track Your Application
Send in your completed paperwork and fees in person or by mail or courier. If you need to make any changes to your application, you have to do so within five business days. Once your application has been submitted, you can then check its status online.
A car dealer in Virginia is classified as an Independent Dealer-Operator. The very first step is to register for the two-day Independent Dealer-Operator course at Virginia Community Colleges. A “Dealer-Operator” is responsible for the day-to-day operations of a dealership. The Dealer-Operator’s responsibilities may include, but are not limited to: supervising salespersons, making sure records are kept up to date, and serving as the primary contact with the MVDB.
The course and the exam involved will familiarize you with the latest laws in Virginia in relation to car sales and registration. It is taught by the VIADA – Virginia Independent Dealers Association. Obtaining this license will allow you do participate in dealer-only car auctions and to also operate a car lot to sell cars(requires a bond).
Becoming a Licensed Car Dealer in Virginia:
1) Find a Virginia Community College location near you offering the 2 Day Virginia Dealer-Operator course
2) Upon completing the course, you will need to pass a final exam
3) Go to a Department of Motor Vehicles in Virginia and take the Independent Dealer-Operator exam
Taking the Independent Dealer-Operator Examination at the DMV:
Complete the MVDB 57 (Click to Download PDF form), Dealer-Operator/Salesperson Qualification Test Application and indicate on this form appropriate dealer-operator test as follows:
If you are currently holding a valid Virginia Salesperson License check on the MVDB 57 – Dealer-Operator Independent Test (80 questions).
If you do not have a valid Virginia Salesperson License check on the MVDB 57 – Combined Dealer-Operator Independent/Salesperson Test (100 questions).
What You Need for the Exam at the DMV:
Proper identification (valid driver’s license, passport)
Payment for testing fee ($50)
Do I Need a Car Lot to Get a Dealer’s License?
There are many aspects to the auto business beyond the large, fancy lots. For starters, there are numerous independent dealers who run smaller lots, but there are also many legitimate, licensed sellers who don’t have lots at all. If you’re just starting out in the auto trading business, this might be an option you’re interested in. It can be a good way to start out small without making a big-time investment in a lot or a large inventory.
So, if you’re asking whether you can get a dealer’s license without having your own lot, the answer is yes, you can! However, there are a few key considerations you should be aware of first. For one thing, like any other dealer, you’ll be required to carry a motor vehicle dealer bond to protect your customers—and that’s where Surety Bonds Direct comes in. In this article, we’ll talk about how to get a car dealer’s license without a lot, and learn a little bit about motor vehicle dealer surety bonds along the way.
Do You Need a Dealer’s License?
First, maybe you’re wondering if you really need a dealer’s license to sell a few cars on the side. If you’re just selling your own personal vehicle, a dealer’s license isn’t necessary. However, most states allow a private citizen to sell only two or three vehicles per year without a license. You also won’t get access to dealer auctions without a license, which is where most used car dealers find their best stock.
Sometimes, entrepreneurs looking to dip a toe into the water will “rent” a dealer’s license by paying a membership fee to a local dealership that provides access to dealer auctions and other benefits of being a licensed dealer. However, these practices can be legally dubious, and you’re better off avoiding them. The bottom line is this: If you want to be an auto dealer, you need an auto dealer’s license. Dealing cars without a license is illegal, and if you get caught, it can make it harder to get a license in the future.
Steps to Get Your License
Ultimately, the good news is that you don’t have to have any kind of lot space to get a dealer’s license. You can go through a process that’s fairly similar to the licensing process for a dealer with a lot. The auto dealer license application process can be fairly long and involved, but with the right know-how, thousands do it every year. The steps you’ll need to follow will include:
- Contacting your local Department of Motor Vehicles or Department of Licensing to get all the forms and information you’ll need.
- Filling out your application packet, which typically includes:
- Paperwork for creating a DBA
- Detailed business plan
- Business license for your municipality
- Background check and financial history
- Proof of surety bond
- Sending in your application packet with the appropriate fees and notarizations (as required by your state and local laws).
There are a few special considerations to know for dealerships without lots. If you’re planning on displaying vehicles for sale at your home, check local laws first. There may be a limit on how or where you can display them. You’ll also still need to list a place of business on your paperwork. This should be where your records are kept.
Getting a Surety Bond
Whether you have a lot or not, getting a surety bond is essential for becoming a licensed dealer. If you’re not sure exactly what a surety bond is, don’t worry—many people aren’t quite sure at first. Check out our page on What Is a Surety Bond? to find out the basics.
Basically, a surety bond serves as a guarantee that your business won’t engage in unethical conduct. That can include everything from misrepresenting a vehicle’s condition to not paying sales taxes. State law will determine how much your bond needs to cover, but amounts can range anywhere from $10,000 to $100,000. You’ll pay a percentage of this upfront to the surety and then file your certification with your dealer application.
Although dealer surety bonds usually require credit checks, keep in mind that Surety Bonds Direct can help you even if your credit isn’t perfect. Plus, we offer flexible payment plans to make bonds more affordable for our customers. We work directly with leading national surety bond companies to give our customers the most competitive rates and the best customer service so that your business can grow, flourish and expand.
No matter if you’re just starting out in the dealership business or you’re an auto business pro–and whether you have a lot or not – Surety Bonds Direct can help you find the right dealer bond for you. You can talk to our bond experts at 1-800-608-9950 or use our online quote function to get a quick and easy quote today!
How to Own a Car Dealership Franchise
The American public loves to save money. Buying a car used instead of new helps consumers avoid the 20 percent drop in value a new car suffers as soon as the buyer drives it off the lot. In addition, used vehicles are often thousands of dollars cheaper than their brand new counterparts. Consumers who want to take advantage of these savings need a used car dealer to help them locate the right car at an affordable price.
Used car dealers have access to wholesale auctions not open to the public. They buy bank repossessions, dealer trade-ins, government service vehicles and other late-model automobiles at dealer auctions around the country and then sell the cars to buyers on the open market for a profit. You must have a dealer license to buy and sell cars for a living in South Carolina.
Contact the Carolina Independent Automobile Dealers’ Association and sign up for the used car dealer prelicensing course. The course lasts a day and a half and costs $425. You must take the prelicensing course before the state will approve your license application.
Buy a $30,000 surety bond for your dealership. A $30,000 bond is the minimum bond used car dealers in South Carolina are required to carry.
Download and print Form DLA-1 from the South Carolina Department of Motor Vehicles’ website. Fill out the form.
Mail the form and evidence of your $30,000 surety bond to:
South Carolina Department of Motor Vehicles Dealer Licensing and Audit Unit P.O. Box 1498 Blytheville, South Carolina 29016-0023
Schedule a business inspection when the DMV contacts you after processing your application. A DMW representative will then inspect your business location to ensure that you have a nonresidential office, a display lot and a sign clearly advertising your business as a car dealership. When you pass the inspection, the DMW will issue you a used car dealer’s license.
You must renew your dealer’s license every 12 months.
If you cannot print the online used car dealer application, visit your local DMV office and request a copy of form DLA-1.
If you have questions, call the DMV at 803-896-2611.
You can change the company that provides your business’ surety bond at any time. If you do so, however, you must notify the DMV of the change and provide proof of the new surety bond.
It’s illegal to buy and sell cars as a business without a dealer’s license. Penalties range from fines up to $1,000 to up to two years in prison.
Alberta is located in western Canada. If you want to be a motor dealer in Alberta, you must have a license from the Alberta Motor Vehicle Industry Council. The dealer license allows you to purchase and sell both new and used cars. It also allows you to obtain used motor vehicles in part or whole and sell the vehicle in parts or whole. It also allows you to negotiate on another person’s behalf for the sale or purchase of a motor vehicle. You also need a license if you lease, repair or maintain vehicles.
Identify a business structure. Business structures that are acceptable in Alberta include a partnership, sole proprietorship and corporation. You can consult a professional, such as a lawyer or accountant, who can advise you on the best business to meet your needs.
Register the business. Register a business name and your business with the Alberta Corporate Registry. In Alberta, the business name you choose is not required to be unique—unless you are starting a corporation. You will be issued a proof of filing to indicate that proper business registration has been completed.
Research and ensure that you meet eligibility requirements. You need to be over 18 years old to become a motor license dealer, have been in charge of a dealership for at least two years, or have achieved the OMVIC certification license. You also need proof of approval from the municipality where the business will operate.
Apply for license and pay license fees to the AMVIC. The fees depend on the kind of motor dealership you are operating. The fee for a business that deals with repairs is $250 annually; $175 annually for sales; and $350 annually for sales and repairs. The registration fee for a salesperson is $150 per year. (Figures are as of September 2010.) You will need to renew your license every year or get a valid five-year provincial license.
Hire salespeople. Your employees involved in selling cars must be licensed by the AMVIC. Sales staff must attend a one-day seminar developed by the Southern Alberta Institute of Technology to educate salespeople about provincial regulations and help reduce unethical behavior. The seminars are offered in numerous locations across Alberta. You need a designated agent authorization form for each salesperson you hire.
This article was written by the It Still Works team, copy edited and fact checked through a multi-point auditing system, in efforts to ensure our readers only receive the best information. To submit your questions or ideas, or to simply learn more about It Still Works, contact us.
Florida has the highest number of car dealer auctions of any state in the U.S., and getting an auto auction license in Florida isn’t any harder than getting a standard license to sell used cars. Unlike typical auto deals, in which customers negotiate with the seller over the price of a car, car auctions require buyers to bid against each other for the vehicles they want. As a result, auctions in Florida have special requirements that sellers must meet. Here’s how to get a car auction license in this state.
What’s a Florida Car Auction License?
A car auction license is just a type of car dealer license that lets an auto dealer buy and sell cars through auctions. Car auctions typically feature used vehicles, and finance companies and fleet operators like to offload used and government cars through these auctions, such as decommissioned police cars. Although bidders at auctions can’t usually get warranties for the vehicles they win, they can often get much better bargains than an independent dealer is likely to offer.
In Florida, anyone who buys or sells more than three vehicles in a 12-month period must get a motor vehicle dealer license from the State of Florida Department of Highway Safety and Motor Vehicles. As of 2019, Florida has six types of dealer licensing, each with different auto dealer license requirements and dealer license application forms. License Type VI allows independent dealers to sell used motor vehicles, while Type SD grants salvage dealers the right to sell wrecked or salvage vehicles. License Type VF lets franchise dealers specialize in buying and selling new cars from a specific manufacturer or distributor, and Type VW permits dealers to buy and sell wholesale with other dealers or through auctions. License Type SF is for people who want to service vehicles but not sell them. Finally, License Type VA is for dealers who wish to buy and sell cars at an auction but not through retail.
How to Get a Car Auction License in Florida: Pre-Licensing Requirements
Before you can get your car auction dealers license, you need to pass a Florida dealer license class from an official dealer training school. The 16-hour Florida Car Dealer Pre-License Class through OnlineAutoDealerEd.com, for example, satisfies the licensing requirements for every dealer license type in Florida except Type SF. It covers subjects such as franchise agreements and the types of auto manufacturers out there. Once students pass the 50-question final exam and fill out a DMV questionnaire, they can print out a certificate for proof of completion. Although several schools offer pre-licensing classes, they all have very similar requirements.
To get any car auction license in Florida, you must pay a one-time surety bond. Every dealer in Florida must be bonded for $25,000, but you only have to pay between 1 and 15 percent of that figure, depending on your credit score and other factors. A surety bond protects the public in case you cause harm while violating any statutes related to car dealing. Prospective dealers can apply to special bond programs if they have poor credit. Another requirement for getting a car auction license in Florida is to find a location for your services and get it approved through a regional office. Make sure your office is approved by the Division of Motorists Services Compliance Examiner before you sign a lease. Also, you need to register your business with the Division of Corporations at the Secretary of State. You must also get a Federal Employee Identification Number from the Internal Revenue Service and a sales tax number from the Florida Department of Revenue. As with any other vehicle sale, auctions have a sales tax under Florida law. For extra security, the Florida Department of Law Enforcement requires anyone planning to get a dealer license to submit fingerprints, which cost $54.25 per person.
What Documents Are Needed to Get a Car Auction License in Florida?
Getting all the documents for licensure can be confusing, so it pays to collect all the forms at once before applying. The main document you need for an auction license is the Florida Dealer License Application Form (86056). Fill out this form, and include your fingerprints, your certificate of completion for your dealership training course, and proof that you’re owning or leasing an office. You must also include your business registration form and your surety bond. Since motor vehicles are dangerous to transport, Florida requires dealers to get garage liability insurance with single-limit liability coverage of $25,000 and personal injury protection coverage of $10,000. Make sure you include proof of this insurance with your Florida Dealer License Application Form.
Finally, you may need to include forms related to your business structure, such as Articles of Incorporation if you’re a corporation, a Partnership Agreement if you’re partnering with someone else, and an Operating Agreement with Articles of Organization if you’re a Limited Liability Company. Proof of how you plan to elect corporate directors, such as corporate papers or meeting notes, may also be required. Once you’ve filled out your application to get a car auction license and included the necessary forms, you can submit it to the Florida Department of Highway Safety and Motor Vehicles along with a submission fee. As of 2019, that fee is $300 for each main business location you have.
Once your application has been approved, you should get your license in the mail within a month. If you don’t receive the license or run into problems while filling out your application, contact the regional office. As with every car dealer license in Florida, the auction license expires each year on April 30. To renew it, you must pay $75 and provide proof of at least eight hours of continuing dealer training.
Getting a car auction license in Florida is the only way to join one of the state’s most lucrative motor vehicle markets. Once you’ve found a place of operations, filled out the Florida Dealer License Application and paid the necessary fees, you can start auctioning cars for profit.
To sell either new or used vehicles in California, or to act as a broker or wholesaler, you will need to get a dealer license. Dealer licenses are issued by the state Department of Motor Vehicles.
To get licensed you need to comply with the specific requirements for the license you want to get. These may include complying with specific location requirements, passing an education course and exam, and obtaining an auto dealer bond .
See below for a step-by-step guide on applying for your California dealer license.
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California Dealer License Types
There are four main types of dealer licenses in California. These are:
- New – licensees can sell new vehicles to the public or other licensed dealers (can also hold a new/used license)
- Used – licensees can sell used vehicles to the public or other licensed dealers
- Wholesale – licensees can sell vehicles only to other licensed dealers
- Autobroker – licensees can only arrange or assist in the purchase of a vehicle that does not belong to them by a person
The licensing process for these dealers is fairly similar, though there are some conditions that only apply to some of them.
State Business Registration Requirements
Before you can apply for your license at the California DMV you must register your business in the state.
To complete the business registration process, you need to:
- Obtain an Employer Identification Number (EIN) from the IRS
- Register your business with the Secretary of State
- Register with the Board of Equalization and obtain a resale (seller’s) permit
- Register your business with other state agencies such as the Employment Development Department (EDD)
Once you’ve completed these steps, you can proceed with applying for your license.
California Dealer License Requirements
The application process for any of the four main dealer license types is comprised of completing the application forms packet in full and complying with the additional requirements.
There are two separate application forms packets. These are the:
These packets include the majority of forms you will be required to complete as part of your application process. On top of completing these, you will need to provide several other documents and comply with location and photograph requirements. See the next section.
- All dealer types in California must have a location for their business, and obtain property use verification from your local zoning or planning office
- All dealers are required to have an office at the premises of their business location
- All dealers,except wholesale dealers , must have a business sign at their business location
- New and used dealers specifically must have a lot, or display area, for the cars they will be selling
- Brokers and wholesale dealers do not require a display lot
Compliance with all of the above must be properly photographed and attached to your application forms packet. You can find the full details of what kinds of photographs you need to take at the Occupational Licensing Photograph Requirements page.
In addition, you must also provide the DMV with the following documents:
- A copy of your lease or rental agreement
- A copy of your Articles of Incorporation (if applicable)
- A copy of your Fictitious Name Statement (if applicable)
- A copy of your city and/or county business license (if applicable)
- DMV 8016, Request for Live Scan Clearance
- A copy of your resale (seller’s) permit from the Board of Equalization
On top of the above, California used and wholesale dealer license applicants must also comply with two further requirements. Applicants for both these license types need to pass an education course with a DMV-approved education provider . Once they have passed the course, such applicants also need to pass a test with one of their local inspectors .
Finally, dealers also need to have an inspection conducted at their dealership as part of the application. Contact your local inspector from the link above to learn more about the inspection and schedule one.
Applications are filed with your local occupational licensing inspector. Along with submitting your application packet, you will need to pay a number of licensing fees. These are as follows:
- $175 Non-refundable application fee
- $300 New Motor Vehicle Board fee
- $100 Autobroker Endorsement fee (only for brokers, in addition to the application fee)
- $70 Fee per branch office (if applicable)
- $87 Fee per dealer plate (optional)
- $1 Family Support Program fee
California Auto Dealer Bond Requirement
Obtaining a surety bond is also an important part of the licensing process for new, used, and wholesale dealers in California. New and used dealers need to obtain a $50,000 bond, whereas wholesale dealers require a $10,000 bond.
This bond is required to guarantee dealers’ compliance with Section 11710 of the California Vehicle Code.
The cost of getting bonded is not the same as the bond amount. The surety that issues the bond examines a dealer’s personal credit score, along with other financial factors, to set a rate at which they can get bonded. Typically, the better your credit score, the lower your rate will be.
You can get a quick and easy estimate of the cost of your bond by using our bond calculator below.
When you have a car you need to sell, selling it to a dealer is the easiest way to unload it. For many dealers today, the goal is to make that process as quick and painless as possible. Many dealers will buy your car for cash without requiring you to use it as a trade-in to buy another car. When you are not in the market for a new car, deciding to sell your used car to a dealership could save you the hassle of trying to make a private sale.
Most reputable dealers strive to make selling a car as simple and pain-free as possible, but there are still a few steps you should take to ensure the process goes smoothly.
How to Sell Your Car to a Dealer
One of the best parts about selling your car to a dealer is that you do not have to worry about trying to locate a buyer. There are a few things you can do in advance to make sure you get a good deal, though. Before you pull into a dealer lot, make sure your car is ready to be looked at (see more on prepping your car) and that you’ve done some research on how much it’s worth. Consider the cash value as well as the trade-in value.
If you need to grab a used-car value, Cars.com provides Black Book values, which are calculated by examining prices dealers are paying at auction for similar vehicles. You should also make sure you have all the necessary documents (especially the car’s title, if you have it) and valuable accessories, such as extra key fobs. Extras are a good way to negotiate a better deal with potential buyers, even when that buyer is a car dealer.
What to Do When You Arrive to Sell Your Used Car
When you arrive at the dealership, inform the salesperson who greets you that you’re there to sell your car; that salesperson might be able to help you, but in some dealerships, you’ll be directed to see the used-car manager (specific titles may vary from dealership to dealership). Once you’re in the right hands, that person will take down your information, inspect your car, take down the vehicle identification number and run it through a vehicle history database to check for damage, accidents and the like. They will likely ask you if you are using the car you want to sell as a trade-in for a new car. You may be offered more money “on paper” if you are using the car as a trade-in than if you want to sell it for cash. Most dealers will work with you whether you are looking to use your car as a trade-in for a new vehicle or not, though.
While the salesperson is gathering information about the car, the dealership may have its service department check out the vehicle’s condition — particularly its tires, brakes, fluids and mechanical parts. They may take the car for a quick spin to see how it runs. After that, it’s time to get your offer.
The offer you receive will depend on several factors, but it will mostly rely on the price being paid for similar vehicles at auction. Other factors that could influence their offer include whether or not they have similar cars on the lot for sale already, the condition of your vehicle and whether your vehicle needs any repairs to make it ready for sale. If you still owe money on the car, this may also have an impact on how much you are offered. In most cases, you can sell a car back to a car dealership prior to paying it off, but the amount you receive will need to be enough to pay it off.
Many dealers focus on making this transaction transparent. The internet has changed the car-buying and selling process, and consumers now have access to tools that can help them estimate the value of their car before they set foot on a dealer’s lot. If you have questions about your offer, ask them; many dealers will show you current auction prices or other online tools and sites they use.
Even though you’ve done your homework in advance, remember that each dealer is different. If the dealer you’re visiting has too many of the vehicle you’re trying to sell, it may lead to an offer that’s lower than what you were hoping for.
As you would when shopping to buy a car, it’s a good idea to shop around. Weigh any dealer’s offer against offers from other dealers, or from places like CarMax, and choose the one that’s best — and remember, you can always try to negotiate a bit, as well. But be quick about it: A dealer’s offer could change as the market changes, so if you spread this process out over a few weeks, you may find yourself disappointed when you finally decide to act.
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Closing the Deal
After you agree to an offer, the paperwork will start. If you have the title and necessary documents on hand, you could walk out with a check as soon as that day, though some dealerships take as long as 24-48 hours.
What if you don’t have the title to your car — or, worse, you’re underwater on it (meaning you owe more on it than it’s worth)? Well, dealers say that shouldn’t affect the offer they give you, but it will make for a longer process. If you owe money on the car, the dealership will have to wait until it gets the title from your lender, then send you a check for the balance you’re owed. If you’re underwater, you’ll have to write them a check for the amount you owe that isn’t covered by their offer. This process can take up to 10 business days, so be prepared for that.
Retail used car lots usually get their inventory from wholesale auto auctions. Although auto auctions sell cars at low prices, wholesale auctions are not always open to everyone. The best deals are often at dealer-only auctions. You need a license issued by the state to be a dealer in Florida.
Apply for a license as an independent dealer. The Florida Department of Highway Safety and Motor Vehicles issues licenses. According to Florida law, anyone who buys or sells three or more vehicles in any 12-month period is a vehicle dealer and must have a state license. The license application fee is $300 as of 2010. Applications are available at regional offices of the state’s Division of Motor Vehicles.
Identify the specific auction you want to attend. A list of Florida auctions can be found on the website of the National Auto Auction Association. Most auctions are open to any registered dealer. However, a minority of auctions are “closed,” which means only certain dealers may attend. For instance, a vehicle manufacturer may hold an auction for its franchised dealers.
Study the policies of the specific auction you want to attend. You will probably have to preregister. For instance, the South Florida Auto Auction has a registration package that is nine pages long.
Talk to a dealer about attending as a guest. Someone who does not want to become a dealer may be able to attend some wholesale auctions without going through the licensing process. According to the National Auto Auction Association, some auctions allow dealers to bring a guest. Typically, a dealer might bring his mechanic as a guest to inspect the vehicles. However, you might talk to some dealers about attending an auction as their guest.
Are you considering starting a car dealership in Texas? With the upward trend in the US economy and the steady demand for motor vehicles in the state, the time is right for launching a new Texas auto business. In fact, Texas has been consistently ranking as one of the best states to open a car dealership.
Before you set off on your entrepreneurial journey, you’ll want to be prepared, by learning the nitty-gritty details on getting a dealer’s license in Texas. As in most states, you’ll need to comply with the state regulations that govern the business, by getting a Texas auto dealer license and a special kind of surety bond, in the case of dealers called an auto dealer bond.
While the process can be complicated, you can make it easier by getting all the information and knowing the best tips for a smooth start.
We’ve structured this guide in 5 easy steps so as to give you a jump-start in the very beginning of your dealership career.
**NEW**: For an even more detailed explanation, check out our FREE ebook guide!
1. Identify the type of license you need
How can you become a car dealer in Texas? If you’d like to buy, sell or exchange used motor vehicles in the state, you must obtain a general distinguishing number (GDN) from the Motor Vehicle Division of the Texas Department of Motor Vehicles (TxDMV). This is, in essence, your Texas used car dealer license.
Your first step is to identify the type(s) of license you need, by consulting the TxDMV list of licenses . There are several subtypes for selling different vehicles such as:
- Used motor vehicles dealer license
- Used motorcycles dealer license
- Used non-motorized travel trailers dealer license
- New or used trailers/semitrailers dealer license
- New or used mobility motor vehicles dealer license
- Wholesale dealer license
- Wholesale motor vehicle auction dealer license
If you also want to sell new cars, you have to get a franchised dealer license along with the GDN. In both cases, you should start by obtaining all the necessary documents needed for the license application.
You can find full information on all types of licenses in the Licensing section of the TxDMV Dealer Manual .
Please note: You can have more than one GDN license. However, for each one, you must submit a separate application. One GDN can be used for multiple dealerships of the same kind in the same city.
2. Understand which dealer licensing requirements apply to you
Licensing of Texas dealers is handled through the DMV’s eLicensing platform.
To make sure that your application will be accepted the first time you submit it, be extra careful when filling in the form itself, and when preparing the documents that accompany it. Verify that you are giving your correct phone number and address so that TxDMV can contact you successfully if needed.
The usual documents that are required along with your application are:
- Proof of an established and permanent business location (proof of lease or ownership), that is compliant with local zoning and equipped with a permanent business sign. It should have space for at least five vehicles of the type that you want to deal with.
- Certificate of Incorporation, Organization or Partnerships to prove the legality of the entity applying for a license.
- If your company is a partnership, corporation, limited liability company or limited partnership, you have to provide your Employer Identification Number (EIN), obtained from the Internal Revenue Service, on your application form.
- For most types of licenses, you need to submit a surety bond in the amount of $25,000. The bond should cover a period of two years that matches the dates of the license duration.
- Your EIN or social security number
- A copy of the ID of every owner, office or general partner listed in the application
For a detailed description of each requirement, please refer to the Dealer Manual mentioned in the previous section. All application and document forms are available on the Dealer Forms page .
Please note: You can still start your application even if one or more of the required items is missing and then return to submit it later on. Don’t forget to also include information on any other GDN licenses that you have.
Texas Dealer License Cost
The cost of applying for a GDN license is $700 plus an additional $90 for each dealer license plate. Sometimes there might be additional processing fees, depending on the type of license you’re applying for.
3. Research your bonding options
An indispensable requirement for obtaining most types of Texas dealer licenses is to get a $25,000 Texas auto dealer bond . Only franchised dealers, travel trailer dealers and trailer/semitrailer dealers are exempted from this requirement.
An auto dealer bond is a three-party contract between your business as the principal, the Texas DMV as the obligee, and the surety that provides the bond.
The goal of the Texas dealer bond is to guarantee that your dealership will follow all its contractual obligations. Thus, it is a safety net for the general public, guaranteeing that your business will act in accordance with the law.
In this sense, it’s very important to choose your surety bond agency carefully. Look for a trustworthy agency with a solid reputation, so you know that your dealership will get the backing you need.
The best approach is to use the services of agencies that work only with A-rated, T-listed surety companies. This gives you the security that your bond is fully guaranteed, and your customers are completely protected.
Would you agree that there are people born to be good at sales? Of course, we could almost see some violent reactions from people who have perfected the “art” of selling from learning and mentoring.
Regardless of whether it was innate in your personality or just something you adapted through hard work, some people are so good at it, they can sell the Statue of Liberty or even their own mom!
Kidding aside, when you are blessed with a gift of gab, you are most likely to be good at sales and marketing. And when you are so good at it, why not make a living out of it? And when you want to begin at something not as big as real estate yet, but not as small that it seems trivial, selling cars might be a good start.
And since there is no such thing as free in America, you can almost expect a hefty fee that comes with the permission to do your stuff. But how much exactly is the cost to get a dealer’s license?
Average Cost of Car Dealer License
The average cost to get a dealer’s license varies per state as each has an independent regulating body.
The car dealer license price per state is broken down as follows:
- Alabama – $10 percategory for initial location, plus $5 per additional location
- Alaska – $50
- Arizona – $100 to obtain and renew, plus $50 for each branch office within the same county.
- Arkansas – $250 per year and additional sites for $125.00 each.
- California – $175
- Colorado – check out gov for the schedule of fees.
- Connecticut –
- New dealer license: $700.
- Used dealer license: $560.
- Delaware – $100 for motor vehicle dealers and $75 for wholesalers.
- Florida – $75
- Georgia – $170
- Hawaii – $50
- Idaho – $190.
- Illinois – annual fee: $1,000 ($500 if after June 15).
- Indiana – $30
- Iowa – $70 for principal place, plus $20 for additional location
- Kentucky – $100
- Louisiana – $400
- Maine – $150 application fee plus $150 for each type of car you are selling
- Maryland – visit Maryland.com for the list of the cost to get a dealer’s license.
- Massachusetts – Will be set by the licensing board or officer but shall not exceed $200.
- Michigan – $75 for all classes except Class C, H, and R which cost $160.
- Minnesota – $285.
- Mississippi – $100
- Missouri – $150 plus $30 application fee.
- Nebraska – $20
- Nevada – $125
- New Hampshire – $125
- New Jersey – $100
- New Mexico – $50
- New York – $100,
- North Carolina – $90
- North Dakota – $100 for new and used car dealer license price
- Ohio – $150.
- Oklahoma – $200 for new car dealer’s license per franchise, $600 for used car
- Oregon – $1,187 valid for three years
- Pennsylvania – $65
- Rhode Island – $301.50
- South Carolina – $50
- South Dakota – New or used vehicle dealer: $300. Renewal: $175.
- Tennessee – $400
- Texas – $700 for new vehicle dealer license and $200 for used vehicle.
- Utah – $127
- Vermont – $503
- Virginia – $600
- Washington – $975
- West Virginia – $150
- Wisconsin – visit gov for the different license fees.
- $100: Vehicle dealers selling 12 vehicles or more within 12 months.
- $25: Vehicle dealers selling less than 12 vehicles in 12 months.
- Washington DC – $100
- Some states require surety bonds as part of the requirements of car dealer’s license. These states are Alaska, Arizona, Arkansas, Connecticut, Georgia, Hawaii, Illinois, Indiana, Kansas, Massachusetts, Michigan, Montana, New Jersey, Oregon, Rhode Island, South Carolina, West Virginia, and Wisconsin.
- Arizona charges $22 for background checks, while Kentucky charges $20.
- Additional costs may also be charged for dealer plates. Delaware charges $10 per plate, Idaho charges $20.74 that includes mailing fee of $2.74, Kentucky charges $28.50, Michigan is $10, while New Jersey charges $257.50 for 5 dealer plates, Utah charges $12, Washington charges $38.75 and West Virginia charges $3 for temporary plates.
- Arkansas charges a late fee of $35 for licenses that are expired for not more than 31 days.
- Connecticut charges examination fee for $280 which is applicable for new locations only.
- Fingerprinting fee may also be charged in various states. Florida charges $54.25, Nevada charges $38.25, while Utah charges $25.
Some states charge various registration fees. Connecticut charges $140 per plate and Missouri charges a registration fee of $50 per auction.
Getting a car dealer’s license can have great benefits for you if you want to enter the car selling and buying business. Different states have different laws for issuing car dealer licenses and if you want to apply for one, then the first thing you should do is to contact your local Department of Motor Vehicles(DMV) and find out about the rules and regulations involved in getting a car dealer license issued in your state. While there are minor differences in laws in each state, the steps involved in getting a car dealers license are more or less the same and encompass the following:
Decide On Whether You Want To Become A Retail Or A Wholesale Dealer: Car dealers can broadly be divided into wholesale and retail car dealers. While wholesale dealers can sell only to other dealers, retail dealers are the ones who get to sell to the public. As such, retail dealers have to be more responsible and are required to pay larger bonds and require more insurance. At the same time, they also make larger profits, so the cost more or less balances itself out.
Pass The Car Dealer Test: Almost all states require you to pass a Car Dealer License test before you get a dealers license. While tests are mandatory in most states, in California, you will also be required to sit through six hours of classes before you are allowed to take the test. Once you clear the test, you go on to the DMV approval stage for getting your license.
Get Your Location And Dealership Approved: Once you have passed the dealers license test, you go on to get your site approved. For this, you will need to submit photographs of your dealership and also allow for an on-site inspection. There are several issues that you need to pay attention to during this stage out of which, we mention the pertinent few.
Photographs: you will be required to submit not one or two but eleven photographs of your dealership. The photos that you are required to submit will be of:
· The Building
· Outside Sign
· Inside Signs
· Display Area
· Locked Cabinet
· Business License
· Resale Permit
· DMV Dealer Book
Zoning: Zoning is an extremely important issue for dealers who want to get a retail license and might prove to be stumbling block for many. Make sure that the area you set up your dealership in has the required zoning permission for a retail dealership before starting your dealership. In order to get your dealership approved, you will have to submit a zoning approval letter to the DMV.
Other Documents: Other documents that you will need to submit for getting your dealership license are:
Dealer License Class Preview
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Required by the California DMV for the Following Licenses
Buy and sell cars, trucks, motorcycles and other vehicles at any “dealer only” auction anywhere in the USA.
Sell used vehicles to the public, businesses or other dealers. Sell and export to any buyer in other states and countries.
Buy and sell cars, trucks, motorcycles and other vehicles at any “dealer only” auction anywhere in the USA.
Sell vehicles to any dealers but not to the public in California. Sell and export to any buyer in other states and countries.
Broker License (Endorsement)
Assist public buyers by negotiating the purchase of vehicles owned by other dealers.
Sell and export to any buyer in California, other states, and countries
Dealer License Benefits
You will be provided with all the essential materials
Access Dealer-Only Auctions
Run Your Own Business
Parts and Service Discounts
No Sales Tax or DMV Fees
Get Your Own Dealer Plates
and Start Accessing Dealer-Only Auctions
Access the online class from anywhere
A hassle-free, no-download experience for everyone.
Everything you need to get started
You will be provided with all the essential materials
Dealer License Study Guide
Packed with information including how to get your license, buy, sell and the rules that affect California dealers.
Dealer License Application Guide
A step-by-step guide that simplifies the DMV application process. Covers what’s required to apply, and get your license.
DMV License Practice Test
An online test to help you prepare for your visit to the DMV. Practice on our test and be confident you’ll pass the DMV test, easily.
Dealer-Only Auction Directory
A complete listing of auctions in California and across the United States – with access restricted to licensed dealers, only.
Why Choose Dealer 101?
Certified by the California DMV to provide the best step-by-step online dealer training program
Every participant will receive a DMV Certificate of Completion. The Certificate is one of the requirements to apply for your license at the DMV.
Attend from Home
For a limited time, the DMV has approved our instructor-led, online classes. No need to travel to a classroom.
100% Success Rate
Every student that has taken our course has passed their DMV test. Our quality training, practice and coaching will ensure that you’ll pass too!
Avoid Costly Mistakes
Our step-by-step guide makes sure you don’t waste time or money. Our process guides you to know what to do from beginning to end.
Have a question at any time? We’re here to help by chat, text or by telephone. Helping you get your license helps us to improve our courses.
Each session is taught by a licensed California dealer with over 20-years experience buying, selling and exporting vehicles of all types.
Dealer License FAQ
Do I need a car lot to get a Dealer License in California?
No, is the short answer. “Wholesale” licenses don’t require a business location. A “Retail” license or “Broker” endorsement requires a business location. A small office with parking can meet the DMV requirements. We step you through selecting a location in the course.
How many cars can I sell without getting a license?
If you plan to sell even one vehicle for a profit in California, you need a Dealer License. The key here is “for a profit”. The law is pretty clear on this and the DMV has been enforcing this rule lately.
Why do you recommend taking this course as the 1st step?
We recommend taking the training first as you will gain an understanding of each step required to get your License. By doing the training first, you can save a lot wasted time and expense.
Do Car Dealers have to pay sales tax and DMV fees on vehicles?
Once you have a Dealer license, you no longer have to pay sales tax or DMV fees on the vehicles you purchase for resale. Other purchases such as repair parts can also be purchased tax exempt if they are being used on a vehicle you have in your inventory.
Can I buy vehicles from Auctions without a Dealer license?
You could purchase vehicles from “Public” auctions at a higher price. You would be required to pay sales tax and DMV fees there. Only licensed Dealers can purchase vehicles from true “wholesale” auctions such as Manheim, Adesa, Copart or IAA where the prices are significantly lower.
I have questions about becoming a Dealer. Can you help?
Sure. We can be reached at (619) 333-0701 or by email at [email protected] and look for to connecting with you.
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Our customer support is free and you’ll always get a real, live human
Have you decided to start an auto dealership in Alabama? If so, you’ll need to cover a list of requirements before you can legally sell cars. These requirements range from registering your business in the state, to applying for a license at the Department of Revenue, getting an auto dealer bond, and several others.
Keep reading below for a full explanation of how to get your Alabama dealer license!
1. Register Your Business in the State
Apart from a license, every car dealer in the state must also have valid business and tax registrations with state and federal authorities.
To register, you need to pick a business structure which you prefer and file with the state Business Services Division. You will also require a tax registration from the state Department of Revenue. You will be issued a state tax number which you will need for sales tax purposes.
Moreover, you are also likely to require an Employer Identification Number (EIN) from the Internal Revenue Services, which you will need if you plan on hiring employees, as well as Workers Compensation Insurance, to satisfy state labor law requirements.
When you are completed with this step, you can continue to the next.
2. How to Get Your Alabama Dealer Licence
Alabama Code Section 40-12-51 states that a motor vehicle dealer is anyone who possesses and displays for sale at least five vehicles in a period of one year. If you fall within that category, you need to obtain one of the following licenses:
- Used car dealer
- New car dealers
The application process for these licenses differs slightly because wholesalers and rebuilders do not need to comply with some of the location requirements and designated agent requirements. All other conditions are the same.
- The lowest possible rates
- A 100% money-back guarantee
- Access to specialty programs, not available to small agencies
The license application process
To get licensed, you need to:
- Meet location requirements – all dealers must have a permanent location and have it meet local zoning requirements
- New and used dealers must have a business sign that states the business’s name and identifies whether the dealer is a new or used dealer in letters not less than six inches high; its letters must be readable from at least fifty yards away
- Complete the online application form
- Provide business registration documents
- Provide proof of blanket liability insurance coverage in the following minimum insurance limits:
- $25,000 per injury or accident
- $25,000 property damage or a combined single limit of $75,000 per accident
- $50,000 combined per bodily injury or accident
- Submit proof of workers’ compensation insurance (if needed)
- Post an auto dealer surety bond
While the license application form is online, you will need to submit the remaining items by mail to the Department of Revenue and pay a $25 application fee. When you complete the online part, you will be provided with the necessary details regarding how and where to send your paperwork.
Once the Department reviews your application, typically within 7-14 business days, you will be notified of the result.
After you receive your dealer license, another step is due. You must also obtain a Business Privilege License to be granted allowance to operate in your county.
Learn more about how to get licensed and start your auto dealership in Alabama by downloading our FREE ebook guide!
Designated agent registration (only for new and used dealers)
For new and used dealers the application process does not stop here. In addition to the above, these dealers must also become so-called designated agents in the state. This step can only be completed once you have gotten your license from the Department of Revenue.
To become a designated agent, you need to follow the instructions on the Alabama Titling System (ALTS) website. The registration requirements include completing an application package and passing a training course. Note that you do not need to submit an additional surety bond for this registration!
Congratulations, after you have completed this step, you are officially a licensed dealer in the state of Alabama! You can now also obtain your dealer plates from the Department.
Alabama Auto Dealer Bond Requirement
All dealers in Alabama must post a $25,000 surety bond when applying for a license. Beginning October 1, 2020, this amount is expected to increase to $50,000.
To get bonded you need to pay a so-called bond premium which is equal to a part of the whole bond amount. This premium is determined by the surety when it reviews items such as your personal credit score (most importantly!), your personal and business financial statements, and more!
You can apply to get a free quote on your bond by completing the form below!
Typically you can expect the average car to be about $1,000 to $2,000 dollars cheaper than retail if you were to buy directly from the dealer auctions.
You will be surprised just how many cars sell for close to retail prices at these supposedly “Wholesale Auctions”. Why? Because we live in an era where high volume car sales are becoming the norm.
Want To Know Dealer Auction Prices Now?
What the dealers are paying for cars shouldn’t be a secret! Help improve negotiations on your next purchase and know what you deserve on your trade in! Check out our new service on our Home Page.
Buying Cars At Dealer Auctions In 2020
It used to be that you could go the dealer auction and expect to get a car at a significantly reduced price. The idea was: Get the car cheaper, clean/fix any issues, and sell retail to the public for a profit. Typically, a dealer could expect to markup a car around one or two thousand dollars (For the average car).
The problem today is that Car Buying Sites are exposing Used Car Prices so well, that profit margins have slid, so far in fact, that in some cases a dealer might be buying the car at the dealer auction, then selling it to the public for almost the same price.
How Can They Do This?
Third party products and add On products. Items Such as:
- Interior/Exterior Protections
- Service Contracts
These extra products have become so lucrative, thanks to big commissions by the third parties, that if a dealer can consistently sell some or all of these products to car buyers, they can afford to sell cars at wholesale prices.
Tell Us Below If You Have Seen Dealers Advertising That They Sell At “Wholesale”
How To Buy Cars At Auto Auctions
The truth is that you have to treat the auction just as you would treat the dealer- Don’t get emotional about a car. The problem is that it’s actually easier to mess up at the auction because of the exciting environment all of the fast paced buying and selling creates. For some quick tips, from someone who has been there many times before, try this at the Auto Auction:
- Research which cars the will be in the auction ahead of time
- After you have found the car or cars you like, pull the Carfax Report
- Research Used Car Prices prior to arrival and pick a max for each
- If you can get access- Look up prior auction sales to see what other dealers are paying for the cars
- Arrive early to physically inspect the vehicles you have narrowed down and finalize the number you will spend based on your findings
- While bidding, don’t go over your max!
Cars purchased at the Dealer Auctions are certainly cheaper (On Average) than cars purchased at the dealerships themselves. This is especially considering if you purchase those add on products!
However, Dealer Auctions are no joke, and there is a reason that this is a business and not a game. Most dealers that buy these cars do recondition them to get them in proper shape for retail sale, an expense most people don’t consider.
Parts and labor are typically very cheap for the average dealer, where as you might be paying full price to mechanics and detailers. In the end, is cheaper actually going to be cheaper, or even worth it?
It’s pretty easy to make a $500 – $1500 profit per car. I will teach you step-by-step how to make this happen.
Please go through the Free Starter Kit. It will give you GREAT training to get started. NO credit card required.
To start…. without a dealer’s license, you will be shopping the classifieds, Wal-Marts, weekend parking spots, and eBay for the deals. No big deal… these are where my MOST profitable deals come from (seriously!)
There will be a lot of legwork involved. Note: You must be careful not to buy from a curbstoner. I will teach you how NOT to do this!
The simplest way to do this is: buy cars locally and sell locally. It is done all the time! Either people are selling the car too cheaply, or you can recondition the car to make it sell for a higher price, or someone needs the cash NOW, …
Clean The Car for a Higher Profit!
And remember people like dealing with people, NOT dealers. Be a person who sells a clean mechanically sound car at a fair price. Be reasonable and pleasant. There is no need to be a jerk! You can sell all the cars you buy by being pleasant.
Run the whole operation by yourself. No office, no employees! You keep all the profit. You find the car, you recondition the car, you sell the car, and you profit all the money!
It’s an easy business to run. You will be MORE knowledgeable than MOST people who come to buy the car. You KNOW it’s a CLEAN, MECHANICALLY sound car. You will buy cars that “Sell Itself”! You will not use high-pressure techniques at all. People will come to see your car on your schedule and at your convenience. It really is an ideal business.
As a homebased car dealer, get out there and SCRUB the heck out of that car. A cleaner car DOES bring more money! Learn how to detail a car! I recommend “Adams Polishes”!
You can do this business. I will teach you everything you need to know to make it happen!
By far, the cheapest and lowest risk way to start making money in the car business is to start part time buying and selling cars a month from your home. You buy the car. Register the car in your name. Recondition the car yourself. Park it at local Wal-Mart and/or advertise the car in a classified ad or on eBay. Sell the car. Pocket the profit. Buy another money maker!
Just retailing two cars a month, at a $500 profit each, will give you and your family an extra $1000 a month. Sell one car a week and pocket an extra $2000 a month. This is not brain surgery. It really is pretty easy to sell one car a week.
Although there are state limits you need to adhere to. Most states allow you to buy & sell four or five cars a year before you have to get a dealer’s license. Some people sell more and never get in trouble but there is a limit. Some states are more and some are less (like in Illinois you can buy & sell 12 cars a year!).
Once you get past your state limit, then its time to decide if you want to get your dealers license. Some people simply choose to buy and sell their state limit each year and use the money to buy Christmas gifts or go on vacations. Some people buy their state limit in their own name and then the state limit in their wives or husbands’ name and have a little business running. Some people even curbstone the car (not registering the car in their name) to get around getting a dealers license.
Getting your dealers license is not as expensive or as difficult as one believes. I know MANY people who do it for under $500 a month. The profit potential it the car business far exceeds $500 a month! Many people waste a lot of time trying to figure out how to get AROUND getting a license – if they would focus, they could see the larger picture.
Methods of Operation:
- Buying cars locally and selling locally
- Buying cars locally and selling on eBay
- Buying cars on eBay and selling them locally
- Buying and selling cars on eBay
- Auto Brokering new and used cars
Free Introductory Training Videos:
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What is a Texas Dealer License?
A Texas dealer license is easy to get for your business. You need a car dealer license in Texas if you are selling, buying, or exchanging cars. The state provides the license to each dealer and sometimes refers to it as a GDN or general distinguishing number. The license allows you to act as a car dealer legally within the state. Additionally, it’s how you can get dealer plates.
Who needs a Texas Dealer License?
Anyone selling, trading, or buying 5 or more cars, trailers, and motorcycles as a business needs a dealer license in Texas. A person who is only buying a car does not need one. However, if that person buys multiple vehicles to resell them at a later date, he or she would need to be a licensed dealer. This is because that person is engaging in a practice which is consistent with a car dealership.
How do I get a Texas Dealer License?
Here are the steps to get your Texas car dealer license:
- Determine your license type – (The listing below contains only licenses which require a GDN)
- Motor Vehicle – Used vehicles only.
- Motorcycle – Used motorcycles and ATV’s only.
- Travel Trailer (Towable RV’s) – Used travel trailers only.
- Utility or Semi Trailer – New and used utility or travel trailers only.
- Wholesale – Can only sell wholesale to other licensed dealers. No retail sales.
- Wholesale Auction – Allows you to sell vehicles at auction.
- Mobility Vehicle – Vehicles equipped to transport disabled persons only.
- Franchise – New cars only
- Complete the Independent Dealer Application
- Get a Texas Dealer Surety Bond
- Send your completed application and attachments to the Texas DMV
- By faxing all documents to the DMV at 512-465-4190
- Or mailing all documents to the DMV at Texas DMV, Motor Vehicle Division, PO Box 26487, Austin, TX 78755
- Pay the Texas Dealer License Fee
The state will then process what you sent them. It will be approved or denied based on the information they received. If your application is missing something, you’ll get a chance to give the state any missing information. The fastest way to get your license is to make sure you provide the DMV with everything listed in the application.
How long does it take to get a Texas Dealer License?
The average time for approval is 2-3 weeks once the state receives your dealer application. However, if your application is incomplete, you’ll receive a letter from the state asking for what’s missing or a correction to one of the documents. Any missing information will slow down your approval.
How long is my license good for?
A Texas dealers license is good for 2 years from the time it’s approved. The license term begins on the first day of the month and ends on the last day of prior month two years later. For example: Your license term might begin on November 1st, 2016 and end on October 31st, 2018.
Do all Texas license types need a surety bond?
No, not all licenses require a surety bond. Those dealers selling travel, utility, or semi trailers do not need to post a bond. However, all other independent dealers need to post a $25,ooo surety bond. You can obtain one by applying for it online.
Who doesn’t need a license to sell vehicles in Texas?
There are a few exceptions to the rules when it comes to licensing. You do not need a license if:
- You sell less than five cars per year which are registered in your name only;
- You’re a local, state, or federal agency;
- You sell a vehicle in which you have a security interest (forced sale);
- You’re an insurance company;
- You’re a court appointed representative;
- You’re selling an antique car/truck over 25 years old; or
- You’re selling a special interest vehicle.
What if I want to sell used cars and trailers?
You’ll need to complete an application for both license types. Each license type has its own GDN. Remember, GDN stands for general distinguishing number. This number identifies your license type and location of your dealership. You can’t legally perform activities of another type of license if you haven’t obtained that license type.
Self-motivated managers in small companies are those who are impelled to achieve without higher-level supervision. Their motivation comes from within, and they typically lead by example. Self-motivated managers are usually influenced by their backgrounds, values, educations and personalities. They usually possess certain traits in common, and the way they go about completing their work is different than those who are less self-directed.
Managers who are self-motivated are usually positive and friendly, and have excellent communication skills. Self-motivated managers believe in themselves, and they project that confidence and enthusiasm around their employees, according to Mind Tools. These individuals are also energetic and humble. They are likely to admit when they make mistakes, instead of placing blame on others, according to National Seminars Training. Self-motivated managers are also resilient. Most of them easily bounce back from the failures by evaluating what they did wrong.
A self-motivated manager in a small firm is usually highly goal-oriented. These types of managers establish objectives for themselves and their workers. Self-motivated managers are adept at selecting and hiring the right employees. They assemble their teams by carefully matching employees’ skills to specific requirements of projects. Most of these types of professionals keep their minds on the tasks at hand. They are committed to getting results and meeting deadlines. These individuals also tend to be highly respectful of workers, tactfully correcting them to follow the correct procedures when necessary.
Self-motivated managers generally perform at a higher level than their counterparts who aren’t self-motivated, according to the University of Washington. These individuals view problems as opportunities, challenging their workers to perform at the best of their abilities. Most spend their time constantly evaluating performance and developing ways to improve operations. They also have vision for their departments or work teams. Many use performance evaluations as planning tools, encouraging employees to seek training to improve their abilities and performance. Self-motivated managers are also skilled at handling conflict among employees, and don’t allow it to interfere with the progression of assignments. This is crucial in smaller companies with a limited workforce.
Executives of small companies may be able to work with managers in making them more self-motivated. While this trait is usually something indwelt in top-performers, executives may encourage managers to get training in self-motivational techniques. They may also direct them to think more positively and visualize themselves succeeding on projects, according to Mind Tools. Another self-motivation management tool is maintaining a daily journal to keep track of thoughts throughout the day.
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Florida Used Car Dealer License Requirements – how to get your license fast! Here is your step-by-step checklist
turn-by-turn instructions how to get your Dealer License
If you are in the state of Florida and want to sell more than 3 or more vehicles in a 12-month period, you must have a Florida Dealer License. So you landed on my website because you want to know how to do it yourself. If you don’t want to do it yourself, but want me and m y team to do it for you , go here.
To set up your corporation, obtain the necessary forms from the Florida Secretary of State’s office, or go through the online registration process http://dos.myflorida.com/sunbiz/start-business/
Motor vehicle dealers are licensed and regulated by the Division of Motorist Services under Section 320.27, Florida Statutes
To make it easier on yourself in fulfilling the Florida Used Car Dealer License Requirements, the best approach in my mind is to get your location first. It’s obviously easier if you get a DMV approved location. If you cannot do that then you will have to search thru Craigslist and find a location zoned for a used car dealership. You can get something small, like a warehouse location with a small office set up. Or you can get a real estate agent to find a location for you.
Florida Used Car Dealer License Requirements for location are as follows: No motor vehicle or recreational vehicle dealer office shall be maintained from a residence. The office must be in a permanent structure. The office must have a minimum of 100-square feet of interior floor space excluding any hallways, closets or restrooms and a minimum 7’ ceiling. Florida Used Car Dealer License Requirements says that all prospective applicants are advised to contact the regional office serving that area and ask for an inspection of the location before committing time and money at a location that may not meet state requirements. Location and facility requirements are contained in Rule 15C- 23 | P a g e 7.003(4), Florida Administrative Code, (F.A.C.). To view a copy of Rule 15C-7, F.A.C., visit the Department of State’s website at https://www.flrules.org/default.asp
Determine Which Type of License You Need:
- Franchise Dealer: Allows the licensee to sell new motor vehicles under an agreement with a manufacturer. It also permits the licensee to sell used motor vehicles.
- Service facility: Allows licensed franchise dealers to service the makes of vehicle that they sell.
- Independent Dealer: Allows the licensee to buy and sell used motor vehicles at the retail or wholesale level.
- Wholesale Dealer: Allows licensees to buy, sell and deal in motor vehicles exclusively wholesale or with motor vehicle auctions.
Step #1: Receive Approval of dealership location by a DMV Compliance Examiner. You will have to show proof of lease and pictures of your location. This will be attached to your application.
Step #2: Obtain the Florida Used Car Dealer License Application
Download a Florida Used Car Dealer License Application.
Be sure to apply for the correct license.
The correct license type to sell used vehicles is the Independent Dealer (VI).
Step #3: Submit a fee of $300
Department of Highway Safety and Motor Vehicles is the agency that collects this check
- Fee is for each main location
- The office must be in a permanent structure
- The office cannot be in a residence
- The office must have at least 100 square feet of interior floor space, not including hallways, closets, or restrooms. Additionally, the area must have at least a seven-foot ceiling height.
- Make checks payable to “DHSMV”
The requirements for a used car dealer in Florida (Fl.), is you to post a bond to the amount of $25,000. A used car dealer bond is a type of surety bond. All dealers are required to be bonded. You’ll need to fill out a HSMV form 86020 (with some exceptions, see page 21 of the state’s general guide for details).
Bond Amount Required: $25,000
The used car dealer bond is obtained through a surety bond agency You won’t have to pay $25,000 to secure your bond. You’ll only pay about 1-15% of this amount per year (depending on your credit score). Once you purchase your bond, it will be mailed to you by the surety bond company. Include the original bond with your license application (keep a copy for your records). This is not insurance, don’t get the two confused.
Step #6: Obtain a garage liability insurance certificate
- $25,000 combined single-limit liability coverage
- a bodily injury and property damage protection and
- a $10,000 personal injury protection
Step #7: Provide copy of registration or business
Step #8: Submit a copy of corporate papers and corporate meeting notes
These should show the election of corporate directors.
- If the dealership is a Corporation or Incorporation, submit Articles of Incorporation.
- If the dealership is a Limited Liability Company, submit Articles of Organization and Operating Agreement
- If the dealership is a Partnership, submit the Partnership Agreement.
Want your Florida Dealer License in 21 days all do for you ? If you want me and my team to do it for you , go here.
We are almost done with your Florida Used Car Dealer License Requirements and how to get your own dealer license.
Step #9: Get a Sales Tax Number
Download the Florida Business Tax Application form from the State of Florida – Department of Revenue
Step #10: Get your Federal Employer Identification Number
Step #11: Submit your fingerprints along with corresponding fees
Step #12: Submit paperwork
You need to submit your Florida Used Car Dealer License application with required documentation, your original Florida Independent Motor Vehicle Dealer Bond, and appropriate fees to the Florida Department of Highway Safety and Motor Vehicles.
Upon approval, you’ll receive your newly issued Florida Used Car Dealer License in the mail within a month.
If you have questions about application procedures and licensing requirements, contact the Regional Office.
Step #13: Drink a glass of wine (and relax)
Im sure you will be approved, and your Florida Used Car Dealer License will be mailed to you within 2-3 weeks.
If you are not approved, you should receive a letter within 3 weeks.
Florida Used Car Dealer Licenses are valid for 1 year, expiring on April of each year.
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With vehicle ownership at an all time high in Canada, more families own cars than homes, making the auto industry a booming market for business. However if you are looking to resell cars or flip cars for profit individually outside of a business entity, you have to be careful to not avoid breaking any laws.
The margins may not be as large as you think. The main issue with flipping cars without a dealer license is that you need to pay tax on the vehicle when you purchase it. All of a sudden your acquisition cost is much higher than expected, cutting significantly into your profit. Your final profits is the sale price, minus tax on purchase price and minus purchase price.
There are many people, misinformed or directly exploiting, the concept of paying tax on a vehicle that is purchased. By law, you must register all vehicles that you purchase, otherwise, a subsequent resale of the vehicle without registration is considered to be curbsiding. As a curbsider, you are evading tax by not registering the vehicle prior to resale.
Solutions #1 – Dealer License
The most straightforward solution is to get a dealer’s license. The process is extremely straightforward and the cost is minimal. There are many other benefits to having a dealer’s license, including a dealer plate and access to cheaper vehicles via auctions.
Keep in mind that selling a car with a dealer license has requirements that you have to fulfill before sale finalization.
Solutions #2 – Take the tax hit
If you know your cars and you know the market, even after taking the hit from tax you can earn money.
- Flipping low priced cars means that the tax on registration would be lower.
- Buying certain cars off 3 or 5 year leases has a window of value that you may be able to capture.
- Purchasing cars from acquaintances that don’t want the hassle of selling cars, ask them to take the tax hit.
We believe strongly that nothing illegal is sustainable, we advise our readers to abide by the law and play within the rules.
How to get an Arizona Car Dealer License
An Arizona Car Dealer License is required by the Arizona Department of Transportation for companies and individuals who sell or offer for sale a certain number of vehicles in a given year. The number of vehicles required to trigger the need for an Arizona Dealer License depends on the whether cars offered for sale are new or used, are being sold wholesale or retail, and other factors which will be outlined below. Too busy to apply for your license? Call us to discuss how we can assist with your application.
Need help getting your car dealer license in Arizona?
Visit thelicensecompany.com to learn more about how they can help you get licensed. Their license application processing service is $199 and will help you get licensed faster and easier than going it alone.
Which Arizona Car Dealer License do you need?
The answer depends on what types of vehicles you selling and how you sell them. The following are the different Arizona Car Dealer License types and how to qualify for them:
- AZ New Motor Vehicle Dealer – This is your license type if you only sell new and used vehicles. You must sell more than 4 vehicles per year.
- AZ Used Motor Vehicle Dealer – You’ll need this license if you plan to sell more than 4 used cars per year. You cannot sell new cars with this license type.
- AZ Wholesale Motor Vehicle Dealer – This license is reserved for those businesses who sell vehicles to other auto dealers on a wholesale basis.
- AZ Wholesale Motor Vehicle Auction Dealer – This license is needed if you sell vehicles by auction on a wholesale basis to other auto dealers.
- AZ Automotive Recycler – If you plan to dismantle six or more cars per year and sell the remaining parts of those vehicles, you will need this license.
- AZ Public Consignment Auction Dealer – This license is similar to the AZ Wholesale Motor Vehicle Dealer License except it is need if you’re auctioning vehicles to the public only. You cannot auction vehicles to other motor vehicle dealers on a wholesale basis.
- AZ Vehicle Broker – This license type is needed when you are collecting a fee for buying or selling motor vehicles for another person or business. Additionally, you must not be engaged in any of the other practices listed above.
You may also visit the Arizona Department of Transportation’s website for expanded definitions of each license type.
Do I need an Arizona Car Dealer Surety Bond?
Yes. You must submit an AZ Car Dealer Bond with your state application in order to obtain your car dealer license. The surety bond amount ranges from $20,000 to $100,000 depending on your license type. Please visit our Arizona Car Dealer Surety Bond page to learn more about the surety bonds, their cost, and how to obtain it.
You will want to consider applying for your surety bond now to determine your exact cost. You can apply for your dealer bond using our online surety bond application.
What about fingerprinting and background checks?
The Arizona Revised Statutes 28-4361 requires that all motor vehicle dealer applications must be accompanied by a fingerprint card which can be obtained from your local law enforcement agency. Click on AZ Fingerprinting Locations for a listing of fingerprinting locations in your area. The purpose of the fingerprint requirement is so the state can perform a criminal background check prior to license approval.
What do I need to submit to get my Arizona Car Dealer License?
The following is a helpful checklist of what you’ll need to submit:
- Completed stateapplication
- Completed surety bond
- Fingerprint Card
- A written notice of authorization from the car manufacturer or distributor – New Vehicle Dealers only
- Photos of your business signage, the entire lot, all four sides of your building, address and hours of operation, records storage and office areas,
- Photos of your enclosed salvage yard – Auto Recyclers only
- Photos of signage stating there is no implied warranty and emissions being the responsibility of the purchaser – Public Consignment Auction Dealers only
You can find a listing of commonly used forms including the state application here.
What are the Arizona Car Dealer License Fees?
As with most state licenses, you should expect to pay fees directly to the state for processing your application and issuing a license. The up-front fees include a $15 filing fee payable the AZ Motor Vehicle Division and a $22 criminal records fee payable to AZ Department of Public Safety. Additionally, there is a $100 fee for issuing your license once it has been approved. This fee is also payable to the Arizona Motor Vehicle Division.
I’d like to buy and sell used cars from auctions in Montreal and in oreder to do this I need a dealer license! Thanks
Here are some things you will want to consider:
Conditions to obtain a license:
1. Be age 18 or over.
2. Operate a business in which road vehicles, automotive bodies or parts for the resale market are stored.
3. When an application is filed, the individual filing the application must not have been convicted of a criminal offence, possession of stolen goods or fraud involving a road vehicle or its parts within the last five years, unless a pardon has been issued. This condition applies to the applicant, his or her shareholders, partners, officers and employees.
4. Provide a surety bond in the amount of:
* $50,000 to recycle road vehicles
* $200,000 to buy or sell road vehicles weighing over 5,500 kg
* $100,000 to buy or sell road vehicles weighing less than 5,500 kg
* $25,000 to buy or sell motorcycles, snowmobiles, mopeds, scooters and farm machinery
A dealer or recycler licence is valid for a period of two years.
Fill out a Licence application (PDF in French; 207 Ko – 2 pages) and Mandatory surety bond (PDF in French; 74 Ko – 1 page) form to obtain a dealer or recycler licence. Write to the SAAQ if you wish to obtain a paper copy of the licence application form.
You must enclose the following documents:
* a copy of the act of ownership or business lease and property title for land on which road vehicles, automotive bodies or used parts for the resale market are stored;
* a duly certified copy of a declaration of partnership or declaration of company name, letters patent or articles of association;
* if you operate a dealership, a letter of intent from the automotive builder;
* where applicable, the proxy (PDF in French; 40 Ko – 1 page) form or a duly certified copy of the resolution mandating a natural person to file the application;
* a duly certified copy of a municipal attestation (PDF in French; 64 Ko – 1 page);
* the original copy of a surety bond;
* a cheque or money order made payable to the Société de l’assurance automobile du Québec:
o $200 for a dealer licence;
o $200 for a recycler licence;
o $300 for a dealer and recycler licence.
* all documents bear the necessary signatures;
* a surety bond stamp has been affixed to the surety bond form.
How To Get A Dealership License
There are several different types of dealership licenses:
Additional dealer registration applications include:
How to get a dealership license
- Download the appropriate application below, complete and mail to:
New Jersey Motor Vehicle Commission
Business Licensing Services Bureau
P.O. Box 170
225 East State Street
Trenton, NJ 08666-0170
- All owners, partners and corporate officers must be listed on the fingerprint request notification form.
- The applicant and the place of business will be fully investigated after receipt of the completed application.
- The fee for a wall license is $100 and a set of five dealer license plates is $257.50.
- A notification requesting payment of the fee, along with proof of Insurance and bond will be sent after preliminary approval of all requirements and a site inspection.
- Your license and dealer plates will be mailed to the licensed location once your payment is received.
- The MVC may suspend or revoke your dealership license at any time for non-compliance with the terms and condition of its issuance.
Dealer registration fees
|Registration codes 55 and 60|