1. Gets you into private wholesale dealer auctions only dealers can go to - same auctions that all used car dealers buy used cars from, including mega-used car dealerships!
2. Go directly to new-car dealerships to buy wholesale cars with "closed bids"
3. No state limit to how many cars you can sell per year.
4. Cancel your personal registration and insurance and drive around dealer cars with dealer license plates.
5. No need to waste time "wheeling and dealing" and hunting through ads.
6. You'll be a small business owner, entitling you to gold corporate credit cards, small-business loans and other fringe benefits.
7. Tax benefits! "Write-off" just about anything, including gas receipts, auto repair receipts - even dinner and movie receipts!
8. Become an auto broker! Did you know you need an auto dealer license to become an auto broker? You'll be 1/2 way there!
9. Get dealer discounts and make tax-free purchases from almost any business including factory car dealers and parts stores.
10. Buy wholesale cars for yourself, your friends and family members. You'll never get ripped off from a dealership again!
Without an auto dealer license, you are missing out on all these benefits and you are losing thousands of easy dollars every month. I'm typically buying used cars for $1,500 and sell my used car a few days later for $3,000 without doing a thing to the cars. That's $1,500 car profit in my pocket without even blinking.
The State is the Car Dealer License Enemy
Did you know that all states make it a misdemeanor crime to buy and sell cars without a car dealer license? States regulate this by putting a strict limit on how many cars you can sell per year as a private party.
What the state is really saying is "If you don't play by our rules, we'll make it virtually impossible for you to make money in the car business."
To make matters worse, states WILL tell you what laws you must follow, but WILL NOT take your hand and guide you through the process. As a result, the process of getting a car dealer license can be outright ridiculous unless you know someone in the business.
Many people think about getting a car dealer licensed, but eventually give up - frustrated and discouraged in a maze of confusion. They fall back into the trap of searching through ads every week, playing phone tag, and driving around town all day hoping to find a deal, while the licensed dealers are at the dealer auctions and new car dealerships buying cars at below wholesale.
A Car Dealer License is Not as Hard as You Think
When I got my license I realized it takes a little patience, but it is NOT difficult if you are aware of what to expect and what the minimum requirements are . In fact, the vast majority of licensed dealers don't have huge lots and fancy signs - they do the minimum required to get licensed. The minimum requirements can be quite simple.
2How do you get an auto dealer license?
To get a car dealer license in the State of California; the Department of Motor Vehicles requires a dealer applicant to take a six hour preparation class to become a licensed car dealer. There are 2 main types of auto dealers, retail or wholesale. Retail Dealers have more restrictions as liability which required more dealer insurance as well as a larger dealer bond, but retail dealer are the only dealers allowed to sell a car to the public. Wholesale dealers may only sell a car to other dealers.
The applicant must take the class and pass a 40 question test, then submit an application and a bond, then submit photos and pass an on-site inspection. Upon review the DMV inspector will review the dealer's application and then approve the tempory auto dealer license. Often the largest struggle for those attempting to start a retail dealership is the zoning for the city or county to allow a dealership at the choosen location. Make sure that the location you choose is zoned properly and/or will be an acceptable location for a retail dealership. Rarely do wholesale dealerships struggle getting proper zoning permission from the government.
Once a would be dealer passes the test they must prepare for DMV approval from the inspector. To prepare the following tasks must be done. The applicant must produce 11 photos 1)building 2)outside sign 3)display area 4)office 5)business license 6)resale permit 7)telephone 8)inside signs 9)locked cabinet 10)checkbook 11)dmv dealer book
Then the applicant must submit: zoning approval letter, OL902 certificate of class completion, TSM888 business license resale permit ficticious name statement telephone listing livescan fingerprint card personal history questionaire completed dmv dealer application bond in the name of the owner / dealership.
Temporary auto dealer license can be granted within 30 days permanent license can be granted within 120 days.
FOR USED CAR PROFITS CLICK HERE
