INTRODUCTION

What is an Auto Broker? An auto broker is a person who finds and negotiates a new or used car deal on the behalf of their client for a profit. You are the middle man.

Basically you act as a one man car dealership. You can get your client new cars at no-hassle discounts and used car at near wholesale prices. Your clients love you and they tell everyone they know about you. With the right personality, you can make six figures with no problem.

Why do people use auto brokers?

I have discovered mainly three reasons:

1. To avoid the dreaded typical car salesman song and dance. “If I could, would you….”, “If you will sign here I can take this offer to my manager”, … The pony show gets tiring after a while. It’s frustrating, time consuming, and down right manipulative.
2. To save TIME. Busy executives just do not have a weekend to waste driving from dealer to dealer to make deals. These are my best customers. They just want to know the price and want me to get it done asap.
3. To utilize an experts advice. When a client buys a car from you, they will know they are NOT buying a car with frame damage, been in an accident, … Heck, whats that worth? A lot! I charge $500 just to inspect a car for a client. (My knowledge is valuable and if you let me train you, so will yours!)

Most customers already know what they want. They have surfed the internet and know the options, the colors, and the price of the car they want.

You are the automotive expert there to answer questions and provide information so your client can make the decisions that is best for them and their family. Your goal is to provide all the information and pricing up front in a controlled relaxed manner without all the pressure. No song & dance. Just straight forward answers and exceptional service is your motto.

This is MY favorite business model. It feels good to see my clients so happy and excited about the car I selected for them. In most cases, they simply can’t believe how easy the process was and how much time its saved them and how much money they saved. And let tell you, they tell everyone they know about me! Its great when you get a call and the person says, “Hi George, I am Todd, a friend of Sylvia’s. You bought her a Maxima a few months ago. Now, I am in the market for a car. Could you help me?”

Another thing I LOVE about the Auto Broker model is that I buy the car on Wednesday and its sold on Thursday! One day turn around. Gotta love that. No holding costs at all. Every car I buy is presold!

How much money can an auto broker make? Once you are rolling, you should be able to complete 8 – 14 deals a month. Depending on HOW to do the business (Different pricing models are covered at the Auto Dealer Academy) your profit can range from $650 to $1400 per deal. If you do the math, you can see this can be a fairly profitable business model.

Once the marketing and networking starts to fill the pipeline, orders will be steady coming in. At any one time, you should be working on 5 – 10 deals.

Another Tip: If you treat everyone as a one time sale – you will ride in the income roller coaster with average highs and devastating lows. Your goal should be to build long term relationships with your clients. By doing so, you are protecting your future streams of income.

The key is to all of this is finding the folks who are ready to buy cars – right? I cover a ton of proven marketing techniques in the manual. Getting the phone to ring should NOT be a problem.

Another advantage of being an auto broker is that you can keep regular 9AM – 5 PM hours most weeks! Not too bad. This truly isn’t a weekend business. Personally, I LOVE that!

Want to learn how to an Auto Broker? Join the Auto Dealer Academy

Great Job Eric!

Hi George! Last month I bought a BMW 318ic Convertible for $7600. It had two creases in the driver’s door, two cig burns on the back seat, the interior top was loose in the back corner, and the manual transmission popped out of first gear. I had a seat repair guy fix the burns for $90, washed it inside and out, and sold it on ebay for $10,000 with ALL PROBLEMS stated! The buyer used the “Buy it now” feature and flew in from Salt Lake City (I’m in Chicago). He got a great deal, we made some serious cash, and we had the car for 10 days. Thanks!!! You’re the man. Eric – Chicago, IL

Could you imagine making a full time income (one student of mine just made $30,000 in 3 months doing it!) selling cars for profit over the computer?

You will never worry about people wanting to test drive your car on your weekends, strangers wanting to come to your home to see the car, 16 year olds calling and wasting your time, and the other “non serious” buyers. There is a way to deal with only BUYERS and avoid LOOKERS.

PLUS, get this, you can still keep your full time job!

I call it the “eBay Model.” It is covered in depth at the Auto Dealer Academy as a Bonus in Module 5.

With over 61 million active members, eBay is quickly becoming a powerhouse for automotive sales. The biggest used-car lot in the world is right there on your computer, courtesy of eBay. There were nearly 300,000 vehicles sold on eBay last year. Dealers account for about half of eBay Motors’ listings, individual sellers the rest.

DEALERS: Imagine turning your inventory every 7 days! Select a 7 day auction. 70%+ of all cars are sold in the 7 day auction. Think about it! Whats the #1 rule in car sales? You know it “Inventory Turn!”. Ebay is a great way to increase your turn. More and more dealerships have a “ebay manager” which is a separate position from the “internet manager”.

Normally dealers have to spend $400 – $500 in marketing money to get ONE PERSON to walk into a showroom. For that $40 listing fee, they get an average of EIGHT people bidding and perhaps hundreds of lookers over a 7 – 10 day auction period. Additionally, dealers don’t have to spend hours haggling their way to a profit, and they can turn over inventory faster.

And consumers report being twice as satisfied with their eBay experience than the traditional auto purchase at a dealership. Part of the higher satisfaction is because the purchase is out of desire – not need.

There are people making a lot of money selling cars on eBay but, believe me, eBay does have its faults like shill bidding, hidden IDs, no reserve auctions ending auctions early, vehicle misrepresentation, and more. We will discuss problems a little later. Knowing about these problems will help you avoid them!

Seventy percent of all the cars sold are “everyday cars”. Although highline cars bring the BEST profit potential. People will fly in from all over the country to buy your car or the BUYER can arrange a transportation service.

For dealers, Ebay is a simple proposition: a cheap way to reach throngs of buyers.

eBay is very reasonably priced for sellers also. Heck, ebay won’t even charge you if you don’t get bids or the bidding does not reach your reserve price! Try placing a classified in your large town newspaper for less!

You can even set the minimum you will sell the car for and wait for the buyers to start bidding. You can also put a “Buy it Now” at your dream price so someone could snag the car if they really wanted it.

On the Web, you are what your customers perceive.

Presentation does matter. You only have one chance to make the first impression – and it needs to be a good one. Your listing and feedback is critical.

Why not give it a shot and see how much fun it is. Selling cars on eBay is not magic. It is actually very simple and easy. Just remember that it will take a little time for you to see what cars work best for you.

There are some very simple techniques you will learn to help you sell cars for profit on eBay. Since this is an emerging technology, these techniques can not be found anywhere.

I know for a fact you can make $500 – $2500 per car on eBay. The key is to BUY THE RIGHT CAR FOR THE RIGHT MONEY. Its never about where or how you sell the car that determines your profit, its how much you pay for which car! No matter if the eBay marketplace or your home town – you have to study the marketplace and buy what sells!

Know this: Better ads do bring more money! Learn why YOUR ebay ads should look like mine.

I have actually bought the car off eBay and resold it on eBay for a profit! Same car + better ad = more money!

Heck, I made a $1088 profit on this deal alone. This is not brain surgery guys! Heck, I even missed out on an additional $700 in profit that I will discuss during your training at the auto dealer academy.

Go ahead, make a decision to move forward with your goals, keep learning, and buy nice cars & trucks to resale for profit.

I am here to help you learn the business. You can do this business. I will teach you what you need to know to make it happen!

Success!!

George Dean

Introduction
Buy Here/Pay Here (BHPH) dealers deliver basic transportation to thousands of Americans everyday who couldn’t get it any other way. They allow people to find jobs, get their kids to school and doctors, and pursue their version of the American Dream. What a great story. Usually cash is king BUT in the BHPH business CASH FLOW is king!

BHPH is a HUGE business. Its estimated that the BHPH business is a 70 BILLION dollar a year business. Get your piece of the pie!

BHPH finances the “unbankable” customer. No traditional lending institution will lend them money. They do not fit the traditional lending profile. The customer needs a car, the dealer wants to make a profit, and no one will lend the customer the money – so guess what the entrepreneurial car dealer did – that’s right – he financed the deal! He makes profit on the front end (the car) and the back end (the financing)!

The BHPH business is nothing but consumer finance at its finest. Customers agree to make a average down payment and to make weekly payments to the dealer. The dealer is in the LENDING business really – the car is just something he uses to create a note!

They are in every town. “We finance” “Your job is your credit” They serve an important service to the community. They sell cars to people who could never get financed at a traditional dealership. However, this service is at a price, a BIG price. They will pay high interest rates, usually at the maximum state limit. Around 18 – 22%!

I have one friend who owns a “But Here/Pay Here” lot (also called a “Note Lot”) in Texas. He has 300 people bringing him $40 a week. That’s $12,000 a week. That’s serious cash. It takes years to build the business to that level. He has MANY repeat customers and tons of referrals because he treats his customers “right”. In fact, if the car breaks, he fixes it with NO up front cost to the customer. He just adds the cost to the end of the loan! The makes the customer SO happy. Plus the dealer keeps collecting weekly payments! He is in the business of collecting payments (also called notes. Hence the name, Note Lot), not making repossessions.

Your goal is to get many people paying you each week. After you sell the car, you have to get them to keep paying you (that is the tough part of the business).

One reason BHPH lots are so profitable is because this is truly a vertically integrated business. You are the dealership and finance company. You make ALL the profit on the deal, the front end gross and the back end gross. Of course, there are greater risks involved but the financial rewards can be outstanding to say the least.

If there two common reasons people failed in the BHPH business is 1) lack of cash and 2) lack of a disciplined collection system.
The Basic Mechanics of a Note Lot

Operating a successful BHPH lot requires a well thought out plan. Particular attention given to personnel, underwriting, collections, and financial management.

The cash flow is incredible. And the financial risk is relatively low. You buy a car for $500 and get $500 down. You get all your money back! And you collect $40 a week for 100 weeks. (If they loan is paid off in full, you will net over $3500!) And if you have 100 people paying you $40 a week, that’s $4000 a week! Not too bad! Plus, if you repossess a car, that’s FREE inventory to make more money! It’s FREE because the first buyer paid you a down payment that was equal to the amount you originally paid for the car. Some buy here/pay here guys can’t wait until you miss a payment so they can get some FREE inventory. See Resource Guide for a Note Lot Profit Projection Analysis.

If you want to do it right, you need $50,000 – $300,000 for inventory. You will need a great location with lots of traffic.(this will cost a lot of money!). Have an average inventory of 30 – 40 cars. Buy cars for $300 – $2000 each. Retail the cars for $995 – $4995. This is BIG business. Remember though, once you run out of money, you are out of business.

You will finance everything. You tell your customer, “When you get paid on Friday, I get paid on Friday. If I do not get paid on Friday, I will come get the car on Saturday”. Look at them straight in the eyes with a serious tone and voice and face. It can be dangerous! People need their car to get to work and get to the grocery store. You are taking their ride!

To determine the wholesale price of cars on Buy Here/Pay Here lots, also called “note lots”, take the selling price and cut the price in HALF and perhaps even by two-thirds. Most successful note lots ONLY buy cars that they KNOW they can double or triple the price they paid. The goal is sell the car for THREE times the price you paid. In a HOT market, you might only be able to sell it at twice the price you paid. PLUS, you make interest payments on the financing at rates of 18% and UP.

Some wholesalers specialize in visiting large dealerships asking the used car sales manager if they have any note cars in the back they want to sell. The wholesaler buys the car and sells it to a note lot for a couple hundred dollars profit per car. And then the note lot dealer doubles and even triples the price and finances the deal. Everyone wins!

You do need a dealer license! Your main focus needs to be on Location, Location, Location. The dealer license is not big deal if you are going to get a car lot! To reduce cost, let a mechanic rent out a portion of your lot for his business. He will do all your mechanical work for free in exchange for free rent. All you have to do is buy the parts! (and with a dealer’s license and a sales tax number, you will buy all parts TAX FREE)

If you know you want to own a Buy Here/Pay Here, start small buying and selling cars on your own. Parlay your profits until you have an inventory of 10 cars. Keep buying and selling until you have enough money to afford a decent location! Then keep building your inventory until you have 30 – 40 Buy Here/Pay Here cars.

You simply buy cheap cars from the used car sales manager at dealerships. Stop by each dealership once or twice a week asking if they have any “note cars” on trade they want to sell. Always be on the lookout for cars. From time to time, you will find a steal. (Do not get caught with no inventory. Even if your lot is full, keep looking for cars!)

The retail price is THREE times the amount you paid for the car. (Some note notes double the price and add $1000). The down payment is basically the amount you paid for the car (thereby eliminating your financial downside). Most note lots charge the maximum interest rate your state allows you to charge. The standard is to charge about 18 – 22%. You collect about $50 weekly (when the customer gets paid at work, you want to get paid the same day) until the loan is paid off.

Example: Car retails for $4,995 (PLUS tax, tag and title), you will finance about $3800 after a $1500 down payment. At 20% interest, you will finance the loan for two years at $48.35 a week. (use a financial calculator)

Buy Here Pay Here (BHPH) Manual: Table of Contents

Introduction

Ten commandments to note lot success

The basics of a note lot

How much profit can a BHPH make?

Advantages and disadvantages

Financial management

Income tax problems explored

RFC’s in more depth

Increased profits through note creation

Where can you sell your notes?

What to do when things are slow

Management information systems (MIS)

Your BHPH customer

Your staff

What about salesmen?

Your inventory

Your marketing

Lending Basics

Underwriting

Interviewing the BHPH customers

Can you pull a credit report?

Is the customer credit worthy?

How does down payment affect default rate?

Closing the loan

Collect your money

Collection law

Fair debt collection

Extended warranties

Repossessions

Need more money for growth?

Investment Opportunities

BHPH Final Advice

Reference Tables

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It’s pretty easy to make a $500 – $1500 profit per car. I will teach you step by step how to make this happen. Without a dealers license, you will be shopping the classifieds and Wal-Marts for the deals. There will be some legwork involved.

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.

You will be selling cars ranging in price between $995 – $2995. WHY? Well, at that price range many of the deals are CASH transactions. Buy pleasant, clean, mechanically sound cars. Cars you would drive yourself or cars you would buy for your mother or sister.

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.

What if you are not a “salesman”? GREAT! Please don’t be or act like one. Just be normal without any salesman song and dance!

You can do this business. I will teach you everything you need to know to make it happen!

There is a state minimum imposed upon each individual. If you want to buy and sell more than that state imposed minimum – its best to get your dealers license.

George Dean

Bond opened Bond’s Auto Sales in High Ridge, Mo., south of St. Louis about four months ago. She currently sells about 24 vehicles per month, and is shooting for 40 a month by the end of the year.

But not too many years ago, she was a saleswoman and single mother on a budget. So she could relate to some of the single mothers who came in looking for affordable transportation.

“I worked at some high-volume dealerships, and I’d see single mothers who’d only be making $850 a month, and most of that was going to rent and child care,” said Bond in a thick Scottish accent.

“I knew those women weren’t going to be able to make ends meet. In the hype of the sale, their payment might end up being $450 a month. I made a lot of money off of them, but in three months I’d see the car being repo’d. That bothered me. I was very sorry I’d done that. I didn’t want that on my conscience.”

So Bond came up with a way to help these women. She would tell them to delay their purchase until she found something they could afford.

“I’d find some older couple who wanted to trade in their car, and I’d tell them to keep their car, sell them a new one at a discount, and put them in touch with some of these single moms,” she said.

“My managers didn’t like that, but it paid off in the long run. Those women remembered that, and I got a lot of referrals from them. I got tremendous word-of-mouth from that. I have some people I’ve sold three or four cars to over the years.”

That experience led Bond to focus on the women’s market.

“You need to take the time to listen closely to women buyers, and find out what their needs are,” said Bond, who emigrated from Scotland to the U.S. in 1974 when she was 20.

She first worked as a nanny, then as a hairdresser, before taking her first auto-sales job at a Chevrolet dealer in Milwaukee.

Bond said women naturally gravitated to her when she was selling Chevys.

“Women prefer to be sold-to by a woman,” she said. “I also found out that women control the sale. If they come in with their spouse, he may do all the talking, but it’s the woman who will make the decisions.”

Bond said she currently offers inventory that costs her $800 to $1,500, and sells for $2,995 or $3,495.

“About 35 percent of my business is buy-here, pay-here,” she said. “I buy trade-ins from about a half-dozen new-car stores in my area, and from wholesalers.”

Bond said catering to the women’s market is really pretty easy. “Usually, just listening to them will help you understand how to sell them a car,” Bond said. “It defi-
nitely helps you make the sale if you spend some time finding out how you can help them.”

Bond says she tries to make women feel comfortable in a place where men usually dominate — the used-car lot.

“A lot of men don’t take women seriously on the lot,” Bond said. “I can remember going to lots and the salespeople wouldn’t even come out, because I was a female. Women buyers want a reliable vehicle without getting completely burned on it. And they want to be taken seriously in the negotiation process.”

She also tries to make sure the car is exceptionally clean and well-maintained before she sells it.

“I have to watch it,” she said. “I want to spend about $200 a car for reconditioning, but lately it’s been getting up to $300 or $400. That’s okay if its in the vehicle, but I know that’s getting too high.”

For a year prior to opening Bond’s Auto Sales, Bond was wholesaling cars in nearby Florissant.

Alabama
Automobile Dealers Association of Alabama
Mr. Thomas R. Dart, CAE
President
1335 Carmichael Way
P. O. Box 231058
Montgomery, AL 36123-1058
(334) 271-4625
e-mail: adaa@mindspring.com

Birmingham Automobile Dealers Association
Mr. Brett D. McBrayer
President
300 Vestavia Parkway, #2300
Birmingham, AL 35216
(205) 824-0607
e-mail: bamacars@mindspring.com

Central Valley New Car Dealers Association
Ms. Stacey Castle
Executive Director
11294 Coloma Rd., #G
Gold River, CA 95670
(916) 635-2728

Greater Los Angeles New Car Dealers Association
Mr. Charlie Gill
Executive Director
3349 Cahuenga Boulevard W., #3B
Hollywood, CA 90068
(323) 851-0025
e-mail: glancda@mindspring.com

New Car Dealers Association of San Diego County
Mr. Dean B. Mansfield
President
10065 Mesa Ridge Ct.
San Diego, CA 92121-2916
(858) 550-0080
e-mail: ncda@ncda.com

Orange County Automobile Dealers Association
Mr. John Sackrison
Executive Director
3146 Redhill Avenue, #220
Costa Mesa, CA 92626
(714) 424-6090
e-mail: mail@ocada.org

Silicon Valley Auto Dealers Association
Mr. Stephen Smith
Executive Director
333 W. Santa Clara St., Suite #712
San Jose, CA 95113
(408) 979-9568
e-mail: svadasmith@aol.com

Southland Motor Car Dealers Association
Mr. Todd Leutheuser
Executive Director
4201 Long Beach Blvd., #403
Long Beach, CA 90807
(562) 595-4326

Metropolitan Denver Automobile Dealers Association
Mr. William D. Barrow
President
745 Sherman
Denver, CO 80203
(303) 831-1722

Greater Hartford Automobile Dealers Association
Mr. Ed Isenberg
Executive Secretary
179 Allyn Street, Suite #304
Hartford, CT 06103
(860) 246-6566

South Florida Auto-Truck Dealers Association
Mr. Richard A. Baker
Executive Vice President
1380 NE Miami Gardens Drive #125
N. Miami Beach, FL 33179
(305) 947-5950

St. Petersburg Automobile Dealers Association
Mr. James R. Gillespie
Executive Director
4804 Windmill Palm Terr., N.E.
St. Petersburg, FL 33703
(727) 522-2597

Gainesville New Automobile Dealers Association, Inc.
Mr. Var Heyl
Secretary-Treasurer
P. O. Box 357874
Gainesville, FL 32635
(352) 373-3332

Central Florida Auto Dealers Association
Ms. Barbara A. Miller
Executive Vice President
7380 Sand Lake Road, Suite #500
Orlando, FL 32819
(407) 352-5243
e-mail: cfada1@aol.com

Tampa New Auto Dealers Association
Mr. George O. Wilson, III
Executive Vice President
3203 Bayshore Blvd., #1002
Tampa, FL 33629
(813) 837-1114

Georgia
Georgia Automobile Dealers Association
Mr. William F. Morie
President
2255 Cumberland Parkway
Building 900
Atlanta, GA 30339
(770) 432-1658

Metro Atlanta Automobile Dealers Association
Mr. Shayne Wilson
Executive Director
1985 North Park Pl.
Atlanta, GA 30339
(770) 916-1741

Georgia Independent Automobile Dealers Association (G.I.A.D.A.)

6903-A Oak Ridge Commerce Way Austell, GA, 30168
Tel: 770-745-9650
Toll Free: 800-472-8101
Fax: 770-745-9655
E-mail: info@giada.org

Chicago Automobile Trade Association
Mr. Jerry H. Cizek, III
President
18W200 Butterfield Rd.
Oakbrook Terrace, IL 60181
(630) 495-2282
e-mail: jcizek3rd@drivechicago.com

Indianapolis Auto Trade Association
Mr. Timothy J. Dowling
Executive Vice President
150 W. Market Street #810
Indianapolis, IN 46204
(317) 266-8455

Automobile Dealers Association of Greater Kansas City
Mr. William J. Morrison
Executive Vice President
4000 West 114th St., Suite #120
Leawood, KS 66211-2674
(913) 345-8970
e-mail: wmorri4202@aol.com

Greater Louisville Automobile Dealers Association, Inc.
Mr. Scott L. Roth
President
3801 Springhurst Blvd., #209
Louisville, KY 40241
(502) 394-9920
e-mail: sroth@glada.com

Greater New Orleans New Car Dealers Association
Mr. Robert S. Schultis
Executive Vice President
700 Papworth Ave., Suite #104
Metairie, LA 70005
(504) 831-8863
e-mail: schultis@aol.com

Detroit Auto Dealers Association
Mr. Rod Alberts
Executive Vice President
1900 W. Big Beaver Road
Troy, MI 48084
(248) 643-0250

Greater Metropolitan Automobile Dealers Association of Minnesota
Mr. William E. Abraham
Executive Vice President
7300 Metro Blvd. #540
Edina, MN 55439
(952) 831-8019

Motor Car Dealers Association of Greater Kansas City
Mr. William J. Morrison
Executive Vice President
4000 W. 114th St., Suite #120
Leawood, KS 66211-2674
(913) 345-8970
e-mail: wmorri4202@aol.com

St. Louis Auto Dealers Association
Mr. David E. Crafton
Executive Vice President
10730 Manchester Road
St. Louis, MO 63122
(314) 822-0333
e-mail: info@stlautos.com

Greater New York Automobile Dealers Association
Mr. Mark Schienberg
President
18-10 Whitestone Expressway
Whitestone, NY 11357
(718) 746-5900
e-mail: mark@gnyada.com

Eastern New York Coalition of Automotive Retailers
Ms. Deborah Dorman
President
4 Pine West Plaza
Albany, NY 12205
(518) 452-0584
e-mail: ddorman@enycar.org

Rochester Automobile Dealers’ Association
Mr. John R. Lyboldt
President
2024 West Henrietta Road
Building #4
Rochester, NY 14623
(585) 272-7232
e-mail: jlyboldt@rochesterautodealers.com

Syracuse Automobile Dealers Association
Ms. Barbara Rothschild
Executive Vice President
770 James Street, The Towers Room #206
Syracuse, NY 13203
(315) 474-1041
e-mail: syrauto@aol.com

Niagara Frontier Automobile Dealers Association
Mr. Paul Stasiak
President
1144 Wehrle Drive
Williamsville, NY 14221
(716) 631-8510

Greater Charlotte Automobile Dealers Association
Mr. Richard E. Lewis
Executive Director
429-B S. Sharon Amity Road
Charlotte, NC 28211
(704) 364-1078

Greater Cleveland Automobile Dealers Association
Mr. Gary S. Adams
President
10100 Brecksville Road
Brecksville, OH 44141-3206
(440) 746-1500

Columbus Automobile Dealers Association
Mr. Tim Doran
Executive Vice President
655 Metro Place South, Suite #270
Dublin, OH 43017
(614) 799-2232

Stark County Automobile Dealers Association
Mr. James F. Kling
Executive Director
2812 Whipple Avenue, NW
Canton, OH 44708
(330) 477-6655
e-mail: scada@sssnet.com

Automobile Dealers Association of Eastern Ohio
Mr. Steve Chos
Executive Vice President
5353 Belmont Avenue
Youngstown, OH 44505
(330) 759-1111
e-mail: adaeo@autohio.com

Toledo Automobile Dealers Association
Mr. Clay P. Hepler
Executive Vice President
6150 Fantasy Drive
Toledo, OH 43615
(419) 843-2611

Dayton Area Auto Dealers Association
Mr. James L. Horvath
Executive Director
220 S. Edwin C. Moses Blvd., Suite #20-210
Dayton, OH 45407-3400
(937) 222-4911

Akron Automobile Dealers Association
Mr. Bob Teodosio
Executive Vice President
688 Wolf Ledges Parkway
P.O. Box 2244
Akron, OH 44309
(330) 434-3134
rteo2002@yahoo.com

Greater Cincinnati Automobile Dealers Association, Inc.
Mr. Edward P. Ammann
Executive Vice President
138 E. Court St., Room #100
Cincinnati, OH 45202
(513) 326-7100
e-mail: ace@gcada.net

Tulsa Automobile Dealers Association
Mr. David Marsh
Executive Secretary
5727 S. Lewis, Suite #200
Tulsa, OK 74105
(918) 742-0900

Metropolitan Automobile Dealers Association
Mr. Peter Hodges
President
1120 NW 63rd Street, Suite 109
Oklahoma City, OK 73116
Phone: 405-607-0400

Metro Portland Auto Dealers Association
Christopher M. Neuber
Executive Vice President
777 NE Seventh Avenue
P.O. Box 14460
Portland, OR 97232-0460
(503) 233-5044

Pittsburgh Automobile Trade Association
Mr. David P. Wagner
Executive Vice President/CEO
207 Sigma Drive
Pittsburgh, PA 15238
(412) 963-8909
e-mail: info@pittsburghauto.org

Harrisburg Automotive Trade Association
Mr. Robert D. Lilley
Secretary
P.O. Box 4097
Harrisburg, PA 17111
(717) 566-6100
e-mail: baumt@emapusa.com

Automobile Dealers Association of Greater Philadelphia
Mr. Kevin Mazzucola
Executive Director
3311 Swede Rd.
East Norriton, PA 19401
(610) 279-5229
e-mail: adaphila@aol.com

Automotive Association of Erie County
Mr. Timothy M. Sennett, Esq.
Counsel
120 West Tenth Street
Erie, PA 16501
(814) 459-2800

Greater Lehigh Valley Auto Dealers Association
Ms. Martha H. Cusimano
Executive Director
P.O. Box 21925
Lehigh Valley, PA 18002-1925
(610) 758-9691

Texas Independent Auto Dealers Association

Texas Automobile Dealers Association
Mr. Gene N. Fondren, CAE
President
1108 Lavaca
P. O. Box 1028
Austin, TX 78767
(512) 476-2686

Coastal Bend New Car Dealers Association
Mr. Jon D. Buquet
Executive Director
726 Ponder St.
Corpus Christi, TX 78404
(361) 854-1885

New Car Dealers Association of Metropolitan Dallas, Inc.
Mr. Drew Campbell
President
2777 Stemmons Freeway, Suite #841
Dallas, TX 75207
(214) 637-0531

New Car Dealers Association of Tarrant County
Mr. Lee J. Chapman
President
1 Summit Avenue, Suite #501
Ft. Worth, TX 76102
(817) 332-5186

Austin Automobile Dealers Association
Mr. Michael Marks
Executive Director
823 Congress Ave., Suite #1300
Austin, TX 78701
(512) 479-0425

Houston Automobile Dealers Association
Mr. Walter Wainwright, CAE
President
1650 Highway 6, #460
P.O. Box 16550
Sugar Land, TX 77496-6550
(281) 980-3434
e-mail: info@houstoncardealers.com

San Antonio Automobile Dealers Association
Ms. Minda Welch
President
4414 Centerview Drive, Suite #140
San Antonio, TX 78228
(210) 732-9647

Puget Sound Automobile Dealers Association
Mr. James R. Hammond
Executive Director
16101 Greenwood Ave., N. Bldg. #2100
Seattle, WA 98133
(206) 542-3551
e-mail: psada@psada.com

Spokane New Car Dealers Association
Mr. Don Kellman
Executive Director
680 Rock Pointe Tower
316 West Boone Ave.
Spokane, WA 99201
(509) 325-8717

Wisconsin Automobile & Truck Dealers Association
Mr. Gary D. Williams, CAE
President
150 E. Gilman St., #A
P. O. Box 5345
Madison, WI 53705
(608) 251-5577

American International Automobile Dealers Association
Mr. Walter Huizenga
President
211 North Union Street #300
Alexandria, VA 22314
(703) 519-7800
e-mail: GOAIADA@aiada.org

Ford Dealers Alliance
Ms. Michele Van Vorst
Executive Director
401 Hackensack Ave.
Hackensack, NJ 07601
(201) 342-4542

National Association of Minority Automobile Dealers
Ms. Shelia Vaden-Williams
President
8401 Corporate Drive, Suite #405
Lanham, MD 20785
(301) 306-1614

Canadian Automobile Dealers Association
Mr. Rick Gauthier
President
85 Renfrew Drive
Markham, Ontario L3R 0N9
(905) 940-4959

Motor Dealers’ Association of Alberta
Mr. W.D. Watkin
President
9249-48 Street
Edmonton, Alberta T6B 2R9
Canada
(780) 468-9552

British Columbia Automobile Dealers Association
Mr. Glen Ringdal
President & CEO
10551 Shellbridge Way, Suite 70
Richmond, BC V6X 2W9
Canada
(604) 214-9964
info@bcada.org

The Montreal Automobile Dealers Corporation Inc.
Mr. Jean-Francois Couture
Executive Vice President
2335 Guenette
Ville Saint Laurent, Quebec H4R 2E9
Canada
(514) 331-6571

Ontario & Toronto Automobile Dealers’ Associations
Mr. William C. Davis
Executive Director
85 Renfrew Drive
Markham, Ontario L3R 0N9
(905) 940-6232
billd@tada.ca

Saskatchewan Automobile Dealers’ Association
Ms. Vera Hoffert
President
330-3303 Hillsdale Street
Regina, Saskatchewan
CANADA S4S 6W9
(306) 721-2208
vhoffert@saskautodealers.com

Warren’s wisdom about stock investing can be directly related to trading cars for a living. Lets explore four beliefs he has about investing and how they apply to the car business.
1. Circle of Competence

Its important to know what you know and more importantly what you don’t know. Invest in the things you know and ignore the rest.

I get asked, quite often, “George, what kind of cars should I buy?”. My basic response for beginners is to buy what you know. If you have driven honda’s your whole life, thats probably a good place to start. You know how they ride, what noises to listen for, what the common problems are, …. MUCH better than a guy who has only driven Subarus. Right?

My second suggestion is to always try to expand your circle of competence.

2. Margin of Safety

Always buy with a margin of safety. Never pay too much. Your rate of return on your investment will be determined by the price you pay. Never pay too much because there are always things you don’t know about the car. SO use that margin of safety to work in your favor.

If the car is worth $5,000, don’t pay $5500 just to own it. You see it is totally possible you don’t everything about the car. In fact, I bet you don’t know everything about the car. There is an associated risk with buying any car or truck. There might be unknown repairs that need to be made once you get it to your mechanic. If you bought the car with a margin of safety, say $4500, you have $500 you can use for the unexpected repairs. OR, maybe, it will take longer to sell the car than you imagined and you will need that margin of safety for more advertising.

Remember: Buy with a margin of safety.

3. Mr Market

Mr Market is your paranoid schizophrenic partner in the car business (or more directly he might be your wholesaler, your local auction, or just the marketplace in general – in Warren’s case, its the stock market).

Everyday Mr Market, with no thought or reason, makes available cars that can be bought at various prices. You can either take Mr Market up on his offering price for the car or you can say no & wait for a better deal.

Be mindful that you can always ignore Mr Market and wait for the next car for a better deal!

4.Resource Allocation

Your ultimate power and most critical decision is where to allocate your resources. Your main resource is your time and money. If you buy a car for too much money or one that requires too much work – it drains your resources. Be wise where you allocate your resources.

You are using some resources to buy my study course. Mainly money but also time to learn a new skill – how to buy cars for profit. Its an investment into your knowledge. Its an investment that should yield a fair return. As a side note, if you are trainable, you can learn this business!
Success!!

George Dean

1. For a free quote, please call Cameron M. Harris & Company at 800-476-8728 and one of their representatives will be glad to assist you.Garage Liability: A necessary coverage for automobile dealers. It provides you protection against the liability arising out of bodily injury of property damage at your premises, operations, of work performed. It can include optional coverages such as errors and omissions protection (involving Truth in Lending, Odometer, Agent, and Security Interest), Dealers Open Lot, Garage Keepers Legal Liability, and other special needs.

   Workers’ Compensation: Coverage designed to help you meet state mandated coverage requirements at attractive rates. This insurance protects employees who are injured on the job as the result of an accident.

   24-Hour Accident Protection: When Workers’ Compensation is not required, but you still want partner/employee protection, this inexpensive alternative is available.
   Inventory Protection: MAFS has put together Floor Plan Protection for financed vehicles that provides coverage for physical damage including theft, collision, vandalism, hail, flood and other coverages normally associated with Dealers Open Lot coverages. The monthly premium for this coverage is based upon your outstanding balance on financed vehicles. This coverage is similar to the Floor Plan coverages offered to franchised dealers through their factory finance source.

   Umbrella Coverage: Offers higher limits in million dollar increments to protect the assets of your business.

   Dealer Bond: Helps you meet yet another state mandated coverage requirement in a cost effective manner.
   

2. AcordiaAcordia, Inc., a Wells Fargo company, provides a wide range of financial and insurance products to NIADA members and their employees including: health, life, short/long term disability, dental/vision, long term care, college funding programs, retirement plans, garage liability, dealer physical damage, general liability, property, dealer bonds and many more coverages. For more information call Tracy or Cheryl McManamon toll free at 1-888-902-5333
3. Old Republic Surety Company
4. For auto dealer bonds and insurance in CA

NOTE: Where possible, I listed each states Independent Auto Dealers Assocation. They can usually help with bonding and liscensing concerns.

Alabama
A $5,000 Surety Bond or a net worth statement for $25,000 or more is required. Dismantlers must present a bond showing a net worth of no less than $100,000.

http://www.alabamaiada.com/

Alaska
$50,000 bond required; $3,000 for motorcycle dealers.

Arizona
Surety bond of not more than $50,000 for each type of license for each county where dealer has established business; required for each location.

Arizona IADA
5517 N. Black Canyon Hwy.
Phoenix, AZ 85015
602-246-1498

Arkansas
Franchise dealers must post a $25,000 bond with the Arkansas Motor Vehicle Commission to obtain a license. Used car dealers must post $25,000 bond with the State Police.

http://www.arkiada.org/

California
$50,000 bond required.

http://www.iadac.org

Colorado
A $30,000 bond must be posted upon application for license.

http://www.ciada.org/ciada.html

Connecticut
Required; $5,000 for repairers and limited repairers; $20,000 for new and used vehicle dealers. Submitted in the name of the licensee prior to license issuance.

Delaware
There are no bond requirements for dealers.

http://www.miada-diada.com/

District of Columbia
A $10,000 bond is required; filed with the Department of Consumer Regulatory Affairs.

Florida
All motor vehicle and mobile home dealers are required to file a $25,000 Surety Bond. An irrevocable letter of credit may be substituted for a motor vehicle dealer’s bond. Recreational vehicle dealers require a $10,000 bond. For more than 4 additional lots, MH dealers require $50,000 bond, and RV dealers require $20,000 bond.

http://www.fiada.com/

Georgia
A $20,000 bond is required of all vehicle dealers.

http://www.giada.org

Hawaii
Bond is not required, however, a $50,000 line of credit from a financial institution is required.

Greg Le Lesch, Secretary/Treasurer
1001 Ahua Street
Honolulu, HI 96819
808-840-8900

Idaho
A $10,000 bond is required for motorcycle, ATV and snow machine dealers; $20,000 for all others.

Douglas Gaskell, Executive Director
Idaho IADA
813 N. Mitchell
Boise, ID 83704-8161
208-376-9517

Illinois
$20,000 for 36 months.

Indiana
Bond is not required.

Debbie Andersen, Executive Director
Indiana IADA
PO Box 1393
Crown Point, IN 46308
219-661-0287

Iowa
$50,000 Surety Bond must be filed with the Department of Transpiration.

Kansas
$5,000 to $20,000 is optional.

Kansas IADA
529 Humboldt, Suite K
Manhattan, KS 66502-6073
785-776-0044

Kentucky
$15,000 may be required.

Louisiana
A $20,000 bond for new vehicle dealers; $10,000 for used vehicle dealers.

Louisiana IADA
7440 Exchange Place
Baton Rouge, LA 70806-1531
225-922-9910

Maine
Required for all dealers except light trailer and light boat trailer dealers. Bond amount is established by the number of vehicles sold by the dealership:

Vehicles Sold Bond Limits Vehicles Sold Bond Limits
0-50 $5,000 151-200 $20,000
51-100 $10,000 201 and over $25,000
101-150 $15,000

Maryland
Based upon sales volume, surety is required for all dealers.

http://www.miada-diada.com/

Massachusetts
None required

Michigan
$10,000 bond required.

http://www.miada.org/

Minnesota
$50,000 must be filed by all dealers; $5,000 for boat, snowmobile, trailer and motorized bicycle dealers.

http://www.northlanddealers.com/

Mississippi
A $15,000 Designated Agent’s Surety Bond is required for all licensed dealers. Filed with the application for a dealer’s license.

Mississippi IADA
PO Box 1081
Ridgeland, MS 39158-1081
601-957-1010

Missouri
$25,000 Corporate Surety Bond.

MADA Dealer Bond Service
Franchised and used car dealers may secure their $25,000 dealer bond through MADA. This bond is required by law and must be submitted with your application for dealer’s license.Check it Out

Montana
Franchised dealers, used car dealers, recreational vehicle dealers, auto auctions, wholesalers and trailer dealers who sell mobile homes, house trailers and commercial trailers exceeding 6,000 lbs. GVW are required to post $25,000 bond. Wholesaler and trailer dealers selling trailers under 6,000 lbs. GVW and motorcycle dealers must post $10,000 bond.

Montana IADA
PO Box 1264
Miles City, MT 59301
406-232-2207

Nebraska
$25,000 bond is required.

Nebraska IADA
PO Box 29107
Lincoln, NE 68529-0107
402-464-2089

Nevada
A $50,000 Surety Bond is required.

New Hampshire
A $20,000 to $10,000 depreciating bond, or a $1000,000 blanket bond through the New Hampshire Automobile Dealers Association. The two dealer categories are Bonded and Licensed. Bonded dealers are not issued dealer plates.

New Jersey
No bond is required.

New Mexico
A $20,000 corporate Surety Bond is required for auto dealers, salvage dealers, manufacturers, mobile home dealers and motorcycle dealers. A $12,500 bond is required for motorcycle dealers; no bond for boat dealers.

New Mexico IADA
608 Chama Street, NE
Albuquerque, NM 87108
505-232-0809

New York
Bond is required

NYIADA
120 Washington Avenue
Albany, NY 12210
518-462-3333

North Carolina
$25,000 indemnity bond

http://www.theciada.com

North Dakota
All motor vehicle dealers are required to maintain a $25,000 Surety Bond with the department. All mobile home trailer and motorcycle dealers must maintain $10,000 surety bond.

http://www.northlanddealers.com/

Ohio
Not required

Automobile Dealers Alliance of Ohio
7870 Olentangy River Blvd., Suite 107
Columbus, OH 43235-1319
614-436-3396

Oklahoma
$10,000 bond is required on new car dealers, $25,000 on wholesale dealers, and $30,000 on manufactured home dealers.

http://www.e-oiada.com

Oregon
Effective March 1, 2000, insurance is increased to $20,000 for each year the certificate is valid; effective March 1, 2001, requirement is increased to $25,000 for each year the certificate is valid.

http://www.oiada.com/

Pennsylvania
A $20,000 bond is required.
www.piada.org

Rhode Island
All dealers must post a $15,000 Surety Bond with the Dealers License Commission.

South Carolina
A $15,000 surety bond is required.

South Dakota
Required. Amounts are: $10,000 bond for new and used vehicle dealers; $2,000 for motorcycle dealer; $10,000 for trailer dealers (required only for dealers who sell trailers weighing over 2,000 lbs.); $10,000 for mobile home dealers; $2,000 for snowmobile dealers.

http://www.northlanddealers.com/

Tennessee
Bond is filed with Motor Vehicle Dealer Commission.
423-653-7692

Texas
A $25,000 surety is required for motor vehicle, motorcycle, wholesale, and wholesale auction dealers for the licensed period unless the dealer is a franchised dealer or trailer dealer.

http://www.txiada.com/

Utah
Required. A $20,000 corporate surety bond for new or used vehicle dealers. A $1,000 corporate surety bond for new or used motorcycle or small trailer (750 lbs. unladen weight or less) dealers.

http://www.iadau.org

Vermont
Bond requirements. New and used car dealers must provide bond based on number of sales and must have real estate value of not less than $5,000 or more than $15,000.

Virginia
Original licensees are required to furnish $25,000 bond for the first three years in business. Bond required until dealership has three consecutive years without a claim against the bond or fund.

http://www.viada.org/

Washington
$15,000 for motor vehicle dealers, $30,000 for mobile home/travel trailer dealers ($15,000 for travel trailer only). $5,000 for miscellaneous dealers.

http://www.wsiada.com/

West Virginia
$2,000 bond is required for all dealers. Renewal licenses require a new Dealer Surety Bond (Form MV-126-DS-P).

Wisconsin
$5,000 to $100,000 bond may be required, if there is reason to doubt the financial responsibility or compliance of dealership.

http://www.northlanddealers.com/

Wyoming
A $10,000 Dealer Bond is required at the time of application for a license.

Dealers must obtain a Regulatory Permit from the Sales, Use & Business Tax Division. The permit must be presented to the county license issuing official for issuance of a Privilege License, and the Taxpayer Service Center for tag issuance.

Categories of Regulatory Licenses: New Car Dealer, Used Car Dealer, Dismantler, Wholesaler, Rebuilder, Reconditioner.

Dealers must fulfill the following requirements:
a. provide evidence that motor vehicle held for resale are covered by a blanket liability insurance policy

b. display a sign designating the place of business

c. describe and insure permanency of the place of business

d. provide display area for one or more vehicles and a place for maintaining books and records.

Motorcycle and trailer dealers are exempt from regulatory permit. Licenses are renewed annually in person or by mail.

Dealer License Fees:

$10.00 per category, plus $45.00

or up to $210.00 for the Privilege License depending upon the city or county of dealership

$225.00 for automotive dismantlers.

Alabama Dealer License Requirements

ALASKA DEALER LICENSE
Anyone in the business of buying and selling vehicles (acting as a dealer) must be licensed. License must be renewed every two years. Application and proof of bonding required.

Dealer License Fee: $50.00 for original application/renewal

Alaska Dealer License

ARIZONA DEALER LICENSE
The state assigns a permanent four-digit code for new and used vehicle dealers. Renewal is annual.

Dealer License Fees:

Original license and annual fee – $100.00

Branch license – $50.00 per location within county

Filing fee per application – $15.00

Provisional license – $10.00

Background investigation (per individual) – $24.00
Purchasing from an unlicensed dealer

Dealer License Information

ARKANSAS DEALER LICENSE
License issued by the Arkansas Motor Vehicle Commission is required for franchised motor vehicle dealers (buying/selling three or more vehicles in a year).

Dealer License Fee:

$100.00 per year for each dealership

$10.00 per year for each salesperson

Used car dealers must be certified by State Police, display proof of liability insurance, and file a $25,000 surety bond with the State Police. Boat dealers have no license requirements; however, trailer dealers must be certified by local law enforcement officers. If a trailer dealer accepts a motor vehicle as a trade-in, the vehicle must be licensed and titled in the name of the dealership. Trailer dealers are not granted reassignment privileges for motorized vehicles.

Arkansas Dealer License

CANADA DEALER LICENSE
Start here: The Used Car Dealers Association of Ontario

Canadian Certification Program

Ontario’s Motor Vehicle Dealers Act
There are many canadian links for you to explore.
CALIFORNIA DEALER LICENSE
All dealers must be licensed with the State. A dealer number and corresponding dealer plates are issued.

Dealer License Fee:
$150.00 application

$100.00 renewal
New auto, commercial and motorcycle dealers must also pay the New Motor Vehicle Board a $100.00 fee.

More Information

Dealer License Forms for CA

COLORADO DEALER LICENSE
All car, truck, motorcycle and trailer dealers must be licensed to conduct business in the State. A license is not required for boat, special mobile equipment and off-road vehicle dealers. Applications must complete an application, submit a financial statement, post bond, pass a written exam, have an approved business location and submit to criminal background investigation. Licenses must be renewed annually; fees are adjusted annually.

PDF File – CO Requirements

Dealer License Information

CONNECTICUT DEALER LICENSE
New and used vehicle dealers, manufacturers, repairers, wrecker services and junkyards must be licensed. New vehicle dealers must be franchised by a licensed manufacturer. License issuance is subject to initial approval of local authorities. Upon approval, an application is submitted to the Dealers and Repairers Division of the Department of Motor Vehicles. Applications must be renewed biennially.

Connecticut Requirements”

DELAWARE DEALER LICENSE
Private individual may sell four vehicles per year before being required to become a licensed dealer. All dealers must be licensed by the state by Division of Revenue through the Division of Motor Vehicles. Application must include the franchise agreement. Prior to the issuance of a license all dealer facilities must be inspected by a division representative (no inspection fee).
Dealer License Fee:

$100.00 upon application and renewal. Must be paid to the State Division of Revenue.

Delaware Dealer Licence

DISTRICT OF COLUMBIA
Dealers must be licensed to sell vehicles in the District. License is required for new and used vehicle dealers, and a license is required for salesmen. Licenses are issued by the Department of Consumer Regulatory Affairs. An investigation is performed prior to the issuance of dealer and salesmen licenses.

Contact: (202) 442-4400

FLORIDA DEALER LICENSE
Motor vehicle dealers must be licensed. Individual or business selling 3 or more vehicles in one year must have a dealer’s license. Licenses are renewed annually.

Dealer types: Franchise, Independent (Used), Wholesale, Auction, Mobile Home and Recreational Vehicles.

Applicants for a Franchised Dealer License must present a sales/service agreement and appointment letter or letters of intent from the manufacturer or distributor. All dealers must submit fingerprint cards upon initial application for a dealer’s license.

Dealer License Fees:
$300.00 application fee for all dealers

$39.00 for each fingerprint card

$40.00 for each mobile home or recreational vehicle dealer license application

$75.00 renewal fee for Franchise, Wholesale, Independent and Auction Dealers

$140.00 renewal fee for all MH/RV dealers
Florida Dealer Requirements
GEORGIA DEALER LICENSE
A Dealer License may be required for new vehicle dealers. Issuance is handled by each municipality. Leasing Companies and Independent Dealers who deal in used vehicles must be registered with the Used Car Dealers and Sales Tax Division. Mobile Home Dealers must be registered with the Fire Marshal’s Office. Mo­torcycle Dealers and Trailer Dealers are not required to be registered.

Used Car Dealer Requirements

HAWAII DEALER LICENSE
New and used vehicle dealers must be registered. Registrations are issued by the State of Hawaii, the Department of Commerce and Consumer Affairs, and the Motor Vehicle Industry Licensing Board. Dealers must be franchised to sell new vehicles.

Hawaii Dealer Law

IDAHO DEALER LICENSE
New dealers must submit an application and present the contract from the manufac­turer. (See Dealer/Salesman’s license, Exhibit “D”). New Dealer Code ‑ permanent three-digit number. Dealer plates and numbers are transferred upon sale of the dealership. Used Dealer Code ‑ permanent four digit number issued. Motorcy­cle, ATV, and snowmobile dealer requirements (new and used) are the same as for other dealers. Dealer’s license must be displayed. All applications are investigated.

Dealer License Fees:
$115.00 and $10.00 paid with picture I.D

$100.00 renewal fee
Idado Requirements
ILLINOIS DEALER LICENSE
All dealers must be licensed. Dealer establishment must be inspected prior to licens­ing. New dealers must present a franchise letter and all dealers must obtain a tax number issued by the Department of Revenue.

Used Vehicle Dealer License Fees:
$100.00 for Certificate of Authority

$25.00 for each additional establishment
Annual renewal.

Illinois Requirments

INDIANA DEALER LICENSE
Vehicle Dealer: Must be licensed. Dealer must have a lot, a building not attached to or part of a residence, a display area for at least ten vehicles, a permanent sign with name and hours displayed, garage lia­bility insurance in prescribed limits, and retail merchant certificate number. All classifications of dealers, except whole­salers, must sell at least twelve vehicles per year. Upon application the dealer must present proof of insurance, a photograph of the place of business, and the franchise agreement (required only for new vehicle dealers upon initial ap­plication).

Salvage License: Issued for recyclers, crushers, rebuilders and used parts dealers. Dealer must have three or more inoperable vehicles on the lot. A Salvage License does not grant reassignment privileges. Salvage operators cannot be issued dealer plates unless they meet the required dealer qualifications.

Fee: $ 10.00 annually

Transfer Dealer: Sale of vehicles is incidental to the business. Transfer dealers have restricted dealer plate use.

Fee: $20.00 annually

Whole­saler: Issued for a dealer that sells at least 120 wholesale vehicles per year with no retail sales.

Indiana Requirements

IOWA DEALER LICENSE
Distributors, manufacturers, motor vehicle dealers, mobile home dealers, and travel trailer dealers must obtain a dealer license to conduct business. Licenses are issued by the Office of Vehicle Services, Customer Services Section, on a staggered system; issued for 2, 4 or 6 year periods. All applicants for a dealer license must have a place of business with a telephone installed and listed in the dealer’s name, repair and display facilities and an on& ite inspection.

Dealer License Fees: Dealers, manufacturers, distributors of travel trailers and mobile homes

$70.00 for 2 years

$140.00 for 4 years

$210.00 for 6 years

Phone: 515-237-3110,515-273-3219

More information

KANSAS DEALER LICENSE
New and used vehicle dealers must be licensed and issued a dealer number. (Individ­uals or businesses selling over 5 vehicles in one calendar year must be licensed as a dealer). Manufacturers of vehicles must also be licensed.

Dealer License fees:
$200.00 for manufacturers

$50.00 for dealers
License expires annually on December 31.

New vehicle dealers require franchise agreement and an inspection of location (s), which must be zoned commercial, be­fore license is issued.

Inspection Fee:

None for the primary location

$ 10.00 per secondary location(s)

Application must be made in person.

Dealers and salespersons are also investigated prior to license issue. Salespersons, distributors and factory representatives must fulfill state examination requirements.

Exam Fee:

$15.00 for salespersons

$25.00 for distribu­tors and factory representatives

Report of monthly sales activity must be filed.

PDF Kansas Requirements

KENTUCKY DEALER LICENSE
Automobile, truck and motorcycle dealers must be licensed with the state. Trail dealers are not licensed. Dealer must have an established place of business and a business name which identifies them as a motor vehicle dealer.

Annual fee: $100.00

All dealers must have at least one licensed salesperson for each location for which a license was issued. Use tax must be paid for all new vehicles sold.

PDF file for Kentucky

LOUISIANA DEALER LICENSE
Dealers must be licensed by the State. Upon application, new vehicle dealers must submit the franchise agreement. Used vehicle dealers cannot sell new vehicles. Any person who sells five or more used vehicles in any twelve-month period must be licensed as a used motor vehicle dealer.

Dealer License Fee:

$10.00 for new vehicle deal­ers

$200.00 for used vehicle dealers

$100.00 for each additional place of business (new and used)

MAINE DEALER LICENSE
A license is required for new and used vehicle dealers. An individual or business sell­ing more than 5 vehicles in a 12-month period, displaying 3 or more vehicles within a 30 day period or buying vehicles for purpose of resale, qualifies as a dealer in Maine. Application is submitted to the Bureau of Motor Vehicles. The applica­tion must provide the following information: size and location of the lot; the size of the building, display, office and re­pair area. Applications must be signed by all parties and witnessed. The building lease must be valid for at least one year.

Dealer License Fees:

$150.00 filing fee and $150.00 licensing fee (both fees required upon application and renewal)

$150.00 annual renewal

Dealer License for Maine

MARYLAND DEALER LICENSE
Motor vehicle dealers must be licensed if he has sold more than 5 vehicles during a year. Dealer must have a location approved by an authorized representative of the MVA and must complete an applica­tion to be approved by the Business License & Consumer Services Division of the MVA, and must submit a bond in the name of the dealership. Laminated dealer photo license issued; annual renewal by mail is required.

Dealer Li­cense Fees:

$500.00 New and Used Dealer

$300.00 for boat trailer dealers and trailers 15 feet or less

30 day apporval time

Dealer License Research

MASSACHUSETTS DEALER LICENSE
Required for persons principally engaged as dealers (see class listing for specific re­quirements). Dealers must have a separate business office on the premises, maintain a Used Car Record Book approved by the Registry of Motor Vehicles, and post a sign displaying the type of business. Watercraft dealers must have a fran­chise letter from the manufacturer, a sign indicating the type of business and a separate place of business. Dealer Li­censes are issued from the local City Hall; the Boston Police Department issues licenses for dealers based in the city of Boston.

Licenses are issued for the following dealer classes:
Class I – New and/or used vehicle dealer (business license required).

Class 11 – Used vehicle dealer (business license required).

Class III – Salvage parts/Junk (business license required).

Owner/Contractor – Must have ten vehicles (one of which is special mobile equipment &; SME), and garage to work in (business license required). Owner/contractor plates may be issued to: government agencies for public safety uses; persons engaged in leasing storage or mobile office trailers; persons engaged renting or leasing vehicles or trailers to the public (fleets of 20 or more)
Dealer License for Massachusetts
MICHIGAN DEALER LICENSE
An individual acquiring one or more vehicles with the intent of resale is considered a dealer and must be licensed. All dealers must include classification(s) on the application for annual license.

Dealer Classifications:
Class A – New Vehicle Dealer

Class B – Used Vehicle Dealer

Class C – Used Vehicle Parts Dealer

Class W – Broker

Class E – Distressed Vehicle Transporter

Class F – Vehicle Scrap Metal Processor

Class G – Vehicle Salvage Pool Operator

Class H – Foreign Vehicle Salvage Dealer

Class R – Automotive Recycler

Michigan Dealer License

MINNESOTA DEALER LICENSE
All dealers must be licensed. New and used vehicle dealer licenses must have a per­manently enclosed commercial building on a permanent foundation, office space for records. Personal franchise agree­ment and means for repairing vehicles required for new dealers only. Used vehicle dealers must have a person to answer the telephone or an answering machine. Lessors and wholesale dealers must have an office, records and a person to an­swer the telephone or an answering service. Auctioneer requirements are the same as for new or used dealers, but may be based outside the state. A site inspection is required for all dealers prior to the approval of a dealer license. Dealer classes include new, used and broker, lessor, parts, scrap metal, wholesale, leasing, and auctioning. Boat, snowmobile and motorized bicycle dealers are required to be licensed.

Dealer License Fees:
$153.50 application and annual renewal fee

$103.50 if application is made after July 1

$13.50 for boat, snowmobile, and motorized bicycle dealers

MN Requirements

Forms

MISSISSIPPI DEALER LICENSE
Applicants must have a place of business, an office, and must display a sign, and must file a bond with the application. An eleven digit designated agent number is assigned to each dealer. The number is carried on any issued title and in the dealer record.

Dealer License Fees: (initial and renewal)
$100.00 new and used vehicle deal­ers

$75.00 trailer dealers

$50.00 motorcycle dealers
Mississippi Dealer License
MISSOURI DEALER LICENSE
New, used, boat, wholesale, manufacturers, motorcycle and trailer dealers are required to be licensed if they sell six or more vehicles/boats per year. Application, a place of business, criminal record check and registration fee must be submitted. Statement of insurance certification required. License expires December 31 annually.

Dealer License Fees:

$150.00 motor vehicle dealers

$80.00 marine dealers

Fees are prorated on date of application.

Body shop/rebuilder, used parts dealer, salvage/dismantler or mobile scrap processor must register and have a bonafide place of business. Only salvage dealers and dismantlers can purchase vehicles from a salvage pool.

Fee: $65.00 per designation

Expiration is June 30 annually.

Out of state salvage dealers must register with the State.

Fee: $25.00

Get a Dealer Packet

MONTANA DEALER LICENSE
To apply for dealer license, franchised dealers must submit a copy of the franchise agreement from the manufacturer. All other dealers must submit only license application. Applications are investigated prior to license issuance.

Dealer License Fees: New or used vehicle dealer

$30.00 with $30.00 annual renewal.

For applications after July 1, fees are reduced by half.

Call Motor Vehicles Division: (406) 444-4536

NEBRASKA DEALER LICENSE
All dealer branches, dealers and salespersons must be licensed. If an owner sells more than eight registered vehicles, motorcycles or trailers within one twelve month period, license is re­quired. New car dealers must be franchised. Place of business, repair facility, 10 car parking lot, and a surety bond are re­quired for application. An inspection is made to verify fulfillment of requirements.

Dealer License Fee: $160.00 annually

Dealer Licence for Nebraska

NEW HAMPSHIRE DEALER LICENSE
Dealers must be licensed with the state. Prior to license issuance, applicants are investigated by an agency Inspector, and must also be approved by local authorities. License renewal is March 31, annu­ally.

Dealer License Fee: $125.00

Dealer classifications include New, Used, Junk, Repair, Transporter, Utility, Motorcycle and Wholesaler.

Dealer License for New Hampshie

NEW JERSEY DEALER LICENSE
All new and used car dealers, leasing companies and Auto Body Repair facilities must be licensed. Applications for license are submitted to the Dealer’s Unit, Business License Compliance Bureau. Dealer plates and registrations are available only from Trenton. New car dealers must be franchised to sell new cars. A special license is required for used car dealers. Application packages include the application form, affidavit, signature card, security check authorization waiver form, and supplemental application form.

New Jersey Dealer License Information

Dealer License Fees:

$100.00 for automobile deal­ers

$350.00 for two&;year Auto Body Repair license fee

CALL: 609-292-4517

Used Car Lemon Law

Guide to Auto Leasing

NEW MEXICO DEALER LICENSE
A dealer license is required for wholesalers, manufacturers, wreckers, distributors, new vehicle dealers, used vehicle dealers, house trailer and motorcycle dealers. An established place of business must be maintained and zoning and fencing requirements must be met. All dealers must have a display area except wholesaler. On site inspection is conducted prior to license issuance.

Dealer License Fee: $50.00 upon application and renewal

Dealer licenses are renewed December 31 each year.

Call: MOtor Vehicle Division 1-888-683-4636

NEW YORK DEALER LICENSE
Dealers must be registered to do business in the State. Application and fees are submitted to Vehicle Safety Services Division in Central Office of DMV. Facility inspections are conducted prior to registration issuance.

Dealer License Fees: original registration

$325.00 for two years (includes $25.00 application fee)

$300.00 for renewal

A Dealer Bond is required.

Registrations are for a two-year period only.

Dealers purchase MV-50 Certificates of Sale from the Department.

More dealer license PDF

Dealer License for New York

Nevada Licensing Requirements

NORTH CAROLINA DEALER LICENSE
New dealers must be licensed. Application requires inspection approving established place of business.

Dealer License Fees:

Dealer Certificate $50.00

Salesman License $10.00

Dealers selling trailers or semi-trailers less than 700 lbs. and not carrying more than 1500 lbs. are exempt from dealer requirements.

Dealer License for North Carolina

NORTH DAKOTA DEALER LICENSE
All dealers of new and used cars, mobile homes, motorcycles, snowmobiles, trailers ­and all‑terrain vehicles must maintain a dealer license. Dealer licenses expire on December 31 each year. Renewal notices are sent to licensed dealers each October. Dealers are required to have an office and repair facilities. Watercraft trailer dealers are not licensed.

Dealer License Fees:
$50.00 for new and used car dealers

$35.00 for mobile home

$25.00 for motorcycle dealers

$10.00 for ATV dealers

$20.00 for snowmobile dealers

$20.00 for trailer dealers

Dealer License for North Dakota

Forms

OHIO DEALER LICENSE
New dealer must submit license application, statement(s) of contract from the manufacturer(s), personal credit report, police report, photographs of the establishment and financial statement. All dealer lo­cations are physically inspected. Card size salesman’s license issued.

Dealer Licensing for Ohio

OKLAHOMA DEALER LICENSE
New: Must be franchised, licensed with the Motor Vehicle Commission, have a shop for working on vehicles, and a used car outlet. Salesmen must be licensed.

Dealer License Fees:

$200.00 initial application

$60.00 annual renewal

Used, Wholesale, Salvage and New/Used Manufactured Home Dealers: Must be licensed with the Used Motor Vehicle and Parts Commission.

Dealer License Fees:

$200.00 initial application

$100.00 annual renewal

Used dealers and New/Used Manufactured home dealers must have a building, lot, sign and lavatory facilities. Salvage dealers must have a telephone, lot and sign. Vehicles must be out and on site (fenced). Wholesale dealers must have an office.

Watercraft Dealers: Must be licensed with the Oklahoma Tax Commission.

Fee:

$200.00 plus $10.00 per dealer franchise agree­ment

Renewal – $100.00 plus $10.00 per each dealer franchise agreement.

New/Used Trailer Dealers: Must be licensed with the Oklahoma Tax Commission.

Fee: $15.00 (includes one dealer license plate) for each type of dealer

OREGON DEALER LICENSE
Dealers must be licensed by the state.

Dealer License Fees:

$329.00 for three year registration

$327.00 for 3-year renewal (includes plate).

Dealer plates are issued to be used for demonstration and delivery purposes. Personal use is also permitted.

Oregon Dealer License”

and this

PENNSYLVANIA DEALER LICENSE
Application for license must indicate type of license for which the application is be­ing made. License must be renewed annually. Each approved dealer is assigned an eight (8) digit dealer identification number (DIN). The first two numbers correspond to the category of vehicle the dealer is licensed to sell.

Dealer Licence in Pennsylvania

Pennsylvania Dealer License

RHODE ISLAND DEALER LICENSE
All dealers must be licensed through the Motor Vehicle Dealers License Commis­sion. Applications are investigated prior to license issuance. Licenses are renewed annually on December 31.

Conact: Motor Vehicles 401-588-3020

SOUTH CAROLINA DEALER LICENSE
State license is required for all new and used car dealers and camper/motorcycle dealers.

Dealer License Fee: $50.00

Issued for demonstration and delivery use only. New car dealers are not required to be franchised; used car dealers may sell new cars.

Dealer License in South Carolina

SOUTH DAKOTA DEALER LICENSE
An individual in the business of selling or advertising sale of vehicles is considered a dealer and must be licensed. Dealer application requirements and renewal applications are filed through the County Treasurer. Investigation of the applicant and the described place of business are conducted by the state dealer inspector.

The place of business must be:
a) a commercial structure within the state of South Dakota, with a display area for five or more vehicles

b) in accordance with building codes and zoning laws

c) location where required books and records are kept

d) the principal business at the location (cannot be the residence of the applicant).

Dealer License Fees: new/used vehicle dealer

$250.00 dealer ($100.00 renewal)

mobile home dealer $250.00 ($75.00 renewal)

motorcycle dealer $200.00 ($75.00 renewal)

snowmobile dealer $100.00 ($50.00 renewal)

trailer dealer $75.00 ($50.00 re­newal)

Southn Dakota Dealer License

More information

TENNESSEE DEALER LICENSE
When an individual sells more than 5 vehicles during a calendar year, he is considered in business and must be licensed by the state as a dealer.

When applying for license, new vehicle dealers must sub­mit a franchise agreement.

New Vehicle Dealer License Fee: $100.00 for each branch upon application/renewal.

Used vehicle dealers may not sell new vehicles.

Used Vehicle Dealer License Fee: $100.00 upon application/renewal

A facility inspection is conducted for all dealers prior to li­cense issuance.

Tennessee Dealer License

TEXAS DEALER LICENSE
Texas Residents Click Here. This is a special manual about how to get your Texas dealers license. Since I am a Texas dealer, I know exactly who to contact for bonding, insurance, … Leran Texas paperowkr, download the Texas dealer license application, and everything else you need.

Used Car Dealer License Fees:

$500.00 for the first year
$200.00 renewal fee per year

UTAH DEALER LICENSE
License is required for all dealers. A dealer is an individual selling or exchanging three or more new or used motor vehicles within a 12-month period. All applicants are investigated by the Motor Vehicle Enforcement Division. Application Form TC ‑ 301 must be completed.

Dealer License Fees:

New Vehicle $125.00

Used Vehicle $125.00

Utah Dealer License

More information

VERMONT DEALER LICENSE
Dealers selling 12 or more cars in a year must be licensed. Dealers must have real es­tate value of not less than $10,000. License renewals are on a staggered basis. A Dealer Audit is conducted by State In­spectors for approval of license renewal.

Dealer License Fee: $275.00 for new and used automobile dealers (5 plates)

Lemon Law for Vermont

VIRGINIA DEALER LICENSE
Certification of Qualification required: each new dealer&;operator and salesperson must pass written examination ($25.00 fee). If applicant is a dealer in new vehicles with factory warranties, a copy of service agreement with manufacturer or distributor is required. The dealer sales office must be inspected by a DMV investi­gator prior to issuance. Each dealer is assigned a permanent dealer code with up to five digits. Licenses are staggered, fees are prorated, each plate must be insured and all licenses expire on the last day of the designated month. Preprinted re­newal forms are mailed to licensed dealers for renewal purposes.

Dealer License Fee:

$100.00 upon application and renewal of dealer li­cense

$10.00 for each salesman license

Additional fee for Recovery Fund

New dealership must pay $250.00 for three consecutive years without a bond or fund claim being filed.

Annual fee:

$100.00

$ 10.00 renewal for each salesperson.

Multi-year licensing is optional

Fee: $200.00 for dealership

$20.00 each sales person

Virginia Dealer License

WASHINGTON DEALER LICENSE
All dealers must be licensed.

Washington has three dealer classifications: Motor Ve­hicle, Mobile Home/Travel Trailer, and Miscellaneous dealers.

Dealer License Fee: $500.00 original dealer licenses

$250.00 renewal (Staggered annual renewal)

Washingotn Dealer License

WEST VIRGINIA DEALER LICENSE
All dealers must be licensed. If an individual sells five or more vehicles in a calendar year, license is required. Dealer licenses are renewed annually on June 30. New Car Dealers must provide at time of ap­plication, proof of established place of business, display area, franchise agreement, and room for repairs. An on-site in­spection of dealer facilities is conducted prior to the issuance of a dealer license. Periodic inspections of dealer facilities are also conducted.

New Car Dealer License Fee: $100.00 upon application and renewal.

Used Car Dealer requirements are the same as for new car dealers, with the exception of a franchise agreement where posted hours of operation and outside display area are re­quired.

Used Car Dealer Fee: $100.00 upon application and renewal.

West Virgina Dealer License

WISCONSIN DEALER LICENSE
Manufacturers, distributors, dealers and mobile home dealers are required to obtain business license (not required for trailer dealers). Individuals buying and selling more than five vehicles are required to obtain a dealer’s license. Issued for 2-year period based on date of issuance.

Dealer License Fee: $40.00 – $100.00 depending on type of vehicle sold.

Dealers are required to file $25,000 bond. Trailer plates issued to trailer dealers for the transportation of trailers exceeding 3,000 lbs.

Wisconsin Dealer License

More information

WYOMING DEALER LICENSE
An Application for a Wyoming Dealer License must be submitted each year. All ap­plications are investigated prior to license issuance.

Dealer License Fee:

$25.00 or $ 100.00 upon application and annual renewal

(fee depends on number of retail sales)

Watercraft dealers require only a Sales/Use Tax license, which is issued by the Wyo­ming Department of Revenue.

Unlicensed Dealers Commonly Known as “Curbstoners”

And What You Should Know About Buying a Used Vehicle

What is Curbstoning?

Curbstoning is an unlicensed vehicle deal. A person who sells vehicles on the street or “at the curb” instead of at a dealership location could be “curbstoning.’ Curbstoners may also advertise vehicles in the newspaper classified section.

What are the Risks?

Buying from a curbstoner increases your risk of being unable to transfer a title. A curbstoned sale may masquerade as a “steal” but could actually be a previously wrecked vehicle, one with a “rolled back” odometer, or even a stolen vehicle. Curbstoners do not comply with state or federal laws and any dealings with them are not protected.

How to Spot a Possible Curbstoner?

Not everyone is out to break the law, but if your “great deal” is made with a vast majority of these conditions, look out! There are several “clues” you can look for:

• The license plates are out-of-state, issued temporarily, are dealer tags, or missing altogether.
• The seller admits he/she is a dealer but says it’s a personal vehicle.
• The seller insists on a cash payment.
• The vehicle’s title is not in the seller’s name.
• The seller offers to do the tag and title paperwork.
• The title is recently issued, or the seller refuses to show you the title.
• The seller gives only a pager or cell phone number.
• The same phone number is listed for multiple vehicles in the newspaper or outdoor location.
• The vehicles are for sale by the roadside, in vacant lots, at shopping centers, or in driveways.
• The seller wants to meet at a different location other than his or her residence.

What to Ask?
When you take a look at the vehicle, consider asking these questions of the seller:

Are you the dealer? Why are you selling the car?

Remember, with the exception of private sales, anyone in the business of selling or buying vehicles in the State of Maryland must be licensed. Ask to see the dealer’s license.

Are you the owner of the vehicle? Is the vehicle titled in your name?

The seller of the vehicle must be the owner or co-owner (with the other owner’s permission). Check to see if the names on the title and seller’s driver’s license match. Does the vehicle’s identification number, make, model and year match what is listed on the title?

How long have you owned the vehicle? Did you buy it new?

These questions are important for you to determine if the vehicle has been well taken care of, or if you are looking at a vehicle with a ”shady past!” You can check into the history of the vehicle by researching the Vehicle Identification Number (VIN) on-line under “vehicle history.” A history of auto auctions and/or sales across multiple states may indicate problems. Please note: A fee is charged for each vehicle history report.

What is the mileage now and what was it when you bought the vehicle?

Check the mileage indicated on the title against the odometer. It is important to note that vehicles normally average an accumulation between 12 and 15 thousand miles each year.

You might also want to check the odometer against the mileage of an oil change or other maintenance stickers that can be found on the doorframe, in the glovebox, or under the hood. An odometer with numbers that are misaligned could indicate a possible “rollback.” If the odometer numbers “jiggle” when you strike the dashboard, that is another indication that someone may have tampered with them.

Has there been any major work performed on the vehicle? Has the car had body repairs? Has the vehicle ever had a rust problem or been repainted? If the seller answers yes to any of these questions, ask for any receipts for the work performed on the vehicle.

If possible, have a qualified mechanic thoroughly check the vehicle. Look for paint color that is not evenly spread on the vehicle, check its texture, and whether or not there are any misaligned parts on the body of the vehicle. Check to see if the doors, hood, and trunk open and shut easily. You will want to check the way the tires are worn. If the tires show they have uneven wear and tear on them, this may indicate abuse, poor wheel alignment, or damaged front-end components. You should also check the horn, the radio, the heater, the wipers, and the defoggers. Try the windows and seatbelts. Test the headlights, the taillights, the flashers, the back-up lights, the brake lights, the turn signals, and the parking lights. Check under the hood, and examine for worn hoses, battery leaks, dirty dipstick oil, or dark or burnt smelling transmission fluid.

How has the car been driven? For example, did the seller take the car around town or was it taken on a majority of long trips?

Ask for service and warranty records. You will want to check for excessive brake pedal wear, which would be consistent with high mileage. To check the brakes, ask if you can test drive the vehicle. While you are driving 30 to 40 mph with no one behind you, apply the brakes 3 or 4 times. A consistent pull to the left or to the right will indicate a problem.

What are the vehicle’s best features? What would I need to do to put the vehicle in top shape?

A seller who really has owned the vehicle will be able to answer these questions easily.

Have you had the vehicle inspected!

In most states if you sell 3 or more cars within a 12 month period, you may be considered an unlicensed dealer. This is punishable by a hefty fine ($5000) or up to 1 year in jail in some cases.

Curbstoners, unlike dealers, don’t play my any set of rules. Dealers are suppose to make a reasonable guarantee the cars they sell have clear titles and are safe for the road.

George Dean