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“How to Get a Dealers License” Manual

How to Become a Car Dealer or Auto Broker

Get inside dealer-only auctions, buy cheap cars, & sell ’em for a profit.

How to Get a Dealers License

Purchase: Dealer License Manual
$49 PDF Download

HOW TO GET A DEALERS LICENSE: An Introduction

Let my $49 “How To Get a Dealer License” Manual be a valuable resource & guide while you are researching the used car business. This manual will provide valuable content, resources, lists, tips, ideas, and suggestions you will find very valuable in your journey to become a licensed motor vehicle dealer, wholesaler, or auto broker. Yes, auto brokers needs to be licensed as well.

Although getting a license is a KEY component to being a successful motor vehicles car dealer, I do NOT recommend you START the business by getting your dealers license! That is sorta like jumping into the deep of the swimming pool in order to learn how to swim, you might be successful… and… you may not.

The first thing you should do, is EDUCATED yourself about the car business (that is what this site is ALL about) and do a few car dealers WITHOUT a license to MAKE DARN SURE you LOVE this business! Once it gets in your blood, you will KNOW it! THEN, get your dealers license. That is just my two cents!

And, getting your dealers license is not brain surgery. It is a simple registration process with your dealer licensing board. Simply follow their requirements, follow the list they lay out, follow their processes, pay their fee, and get your very own, shiny, brand new, used car dealers license. Guys try to over complicate things! Let me make it simple! Look at all the dealerships in your town – they did it – so can you!

Whether your goal is to be a top car dealership in your local town, or escape your day job, or to pay for flight lessons, college tuition, fund your IRAS, or vacations, the car business IS a good business with BUILT in profit. There IS a clearly defined WHOLESALE market and RETAIL market! The requirement of getting a license KEEPS it that way. DO NOT look at getting a dealer license as a drag – it a good thing. It is like a moat protecting the castle! It keeps losers OUT of the business!

I am here to be of service to you during your journey to become a car dealer. Read the articles, take advantage of the education on this website, my training courses, & use my 25+ years experience for your personal benefit. I am here to help (My Cell: 940-600-4044). Your new venture into the buying & sell of used car business will surely be fun and I hope to help you!

If you plan to advertise multiple vehicles for sale, you will need a dealers license eventually to stay in compliance with the laws of your state. The sale of a multiples cars over time, clearly demonstrates your intent to be engaged in the business of buying and selling of used cars for profit.

COMMON QUESTIONS: HOW TO GET A DEALERS LICENSE:

1. How can to get a dealers license WITHOUT a Car Lot? OR.. Can I get a dealers license without a car lot?

The short answer is… you bet your bottom dollar there is! You don’t NEED a “traditional car lot” to get a car dealers license but you will be required to have a “commercial location”. If you want to make a profit selling motor vehicles for profit, getting a dealers license IS the way to go and having a “display space” is required – trust me!

My “commercial location” recommendations & terms are clearly laid out in the training manual for future vehicle dealers. And… once you see my plan & reasoning behind the plan, you will immediately see why it makes the most economical sense. Let me help guide you in your journey to becoming a car dealer. And one day, you may grow into multiple locations and you will need a license for each location – just FYI.

One more thing… Many of the guys in my dealer license training program have to lease a commercial space BUT if own some commercial real estate, that might qualify for your “display space” to get your license! So, just because a “display space” is required, does NOT mean it has to be a “traditional car lot” you envision!

2. Which car dealers license should I get?

Most states offer the auto industry several different types/applications of dealer licenses you can apply for. They type of license you want depends on your application of course. Follow your states licensing requirements, fill out the car dealer license application forms, follow the applications process, pay the fee they want, follow they dealer licensing rules, and become a used car dealer. The laws, requirements, fees, & processes vary state to state but you have the right to call and ask all the questions you want.

AND, you should call and request all the information you want BEFORE they review your dealer license application! You see, these public servants are here to help you & be of service. They want to issue YOU a dealer licenses! You are THEIR customer. You can request more information at any time from the person who answers the phone. They know all the codes and regulations and know the records you may need to be successful in applying for dealer license. I have found the people who work there very helpful indeed. Even after you have been issued a dealers license, they are there to help you!

  • New vehicle dealer license – not this one UNLESS you know someone who will help you get a new car franchise like a Toyota Dealership! TRUE STORY: I had a cousin who was an amazing manager at a Toyota dealership. He was so awesome, the owner helped him get his OWN Toyota franchise and now HIS name is on the building!
  • Used vehicle dealer license – You can Retail, Auto Broker, and Wholesale with this license! This is my recommendation. Each state, each motor vehicles licensing board, has their own licensing requirements but NONE of them are hard!
  • Wholesale vehicle dealer license – not what I recommend you get! You are limited with a used car wholesalers license. See this Free Auto Dealer Training Video
  • Motorcycle dealer license – might be neat to add this one to your license if you love motorcycles!
  • Auto brokers dealer license – A FEW states offer this license.

3. Should I “lease” a dealers license OR get my own?

Please do not fall for one of those “dealer license scams” that promise to get you a license for $200 – $500 a month! Get your OWN license in your OWN state! This way, you control everything!

Here is an idea for you.. Just call up your states dealer licensing department (DMV) and ASK them. Ask, “If I get my license in another state and sell the cars locally, can I do that legally?” AND.. THEN.. LISTEN to the answer! Your state laws wants to PROTECT the safety of their RESIDENTS (your customer) THUS they WILL require you to get a LICENSE in YOUR STATE if you want to do BUSINESS in YOUR state. Be careful. You have been warned. I have seen more than one of these “dealer license services” explode and it isn’t pretty!

I have put everything you need to know in this downloadable PDF. Learn everything you NEED to know BEFORE you get your dealers license! Heck, it’s only $49! I can barely treat myself to a dinner with $49! This is CHEAP! I am going to cover location types, how to get your license as cheaply as possible, how to get a bond & dealer insurance, … you name it, I have covered it.

The auto industry welcomes new ethical, legal, business minded entrepreneurs! Just in, the water is warm!

4. What about an Auto Brokers license?

In MOST states, a dealers license is the SAME as an auto brokers license. There are a few states that have the special designation of “Auto Brokers License” but the requirements are nearly identical.

For MOST of you guys, if you want to be an auto broker, you will get be getting a regular ole “car dealers license” and operating your business as an Auto Broker (What does an auto broker do? How to Become an Auto Broker).

5. Can I Get a Dealers License If I Am a Convicted Felon?

YES, unless the felon is “fraud” or motor vehicle related! Otherwise, you CAN get a auto dealers license BUT the BOND will cost you more! You MIGHT need to get a partner and have the bond and license put in their name for cheaper rates.

6. How Much Money Does a Car Dealers License Cost?

The obvious answer is… it varies. BUT…. in general, the auto dealer license is a few hundred bucks, the surety bond is a few hundred bucks (this will cost MORE if you have bad credit – call and get a bond quote), and the “garage liability insurance” varies based on how much inventory you carry. There ARE additional costs such as price of your location (follow my instructions in the manual to get the cheapest place if cheap is your goal), the office furniture (craigslist), business license from your county, and of course your inventory (the cars!). By the way, getting signed up at the auctions doesn’t cost you anything.

If you can NOT afford the price of the dealer license RIGHT NOW, here are a couple suggestions. Buy & sell your state limit FIRST and then use the profit from those 4-5 deals to fund your dealers license! You can do 4, your wife can do 4, your teenage son can do 4, …

OR… get a financial partner and split the profits! I know many guys who got a financial partner to get started! Having access to capital is a GOOD THING! Run it by a few of your buddies who have money and see what they say! They put up the cash, you do the work, and ya’ll split the profit. Do this UNTIL, you no longer need his cash! THEN, offer him a flat 10% return on his money!

Here is a few more ideas to fund your new car business…. 1) Sell some stuff! 2)Sell that extra car! 3)Get a 2nd or 3rd job. 4)Go cut some lawns. If you want it bad enough, you will find a way to fund your auto dealers license!

7. Why do I need a car dealers license?

Being a licensed car dealer has MANY advantages over NOT having a dealers license. For one, if you buy & sell more than your state allowable limit, about 4-5 cars a year, you could be fined and/or banned from ever getting a dealers license. This would not be fun! The law is very clear on this – follow the law, and you will OK! There are many rights granted to a auto dealer. You want to use them all!

Being a licensed car dealer, means you have a REAL business and you are doing it LEGIT. Trust me, this helps you sleep better at night. It also helps your appearance in the community. Not being an “underground dealer” makes it EASIER to be an successful auto broker! Being legit PAYS! Step up and do this right.

Buying and selling cars without a license and without a car lot is a PAIN IN THE you-know-what. First of all, you have to register every car AND pay sales tax on the car.
You do NOT have to do that as a dealer! You use the dealer reassignment spots on the back of the certificate of title. You don’t have to register this until you sell it to a RETAIL CLIENT and THEY are the ones paying the sales tax, not you! I’d rather pay the expense of a “location” and license, do the business legit, and NOT pay sales tax on every car!

Being a licensed car dealer allows you to drive a car with a dealer plate on it (which is pretty darn cool if you ask me!) PLUS you get to drive the car for FREE because you will sell it for a profit (if you do it right)! Make sure your wife has a nice ride too! All paid for by your company! TIP: Buy a convertible when its cold, and sell it early summer. You will get to enjoy it ALL spring long for FREE – HINT, they are cheaper in the winter!

Being a licensed car dealer allows you to buy cars in ALL 50 states! YES, there are auctions in Hawaii and Florida. Both are very nice places to visit as a “business expense”. I am NOT an accountant, so please, check with your accountant before deducting these expenses.

8. Is this “How To Get a Dealers License” Manual included with the “Master Course“?

Absolutely, when you join the Auto Dealer Academy this manual is included inside the “Members Only” area. You will get instant access upon joining. The “Master Course” teaches you everything from how to get a dealers license, how to inspect cars, how to appraise cars, how dealer auctions work, how to be an auto broker, how to be a used car wholesaler, and more! It is a complete A-Z training course for car lovers who want to learn how to buy and sell used cars for profit.

Learn more about joining the Auto Dealer Academy.

9. What are some of the state requirements for a dealers license?

Of course dealer license requirements very state by state. Some of the typical requirements for a dealers license are….. a commercial business location with “display space” large enough to fit 4-5 cars, some states have a “pre-licensing class” you “need to take” AND SHOULD take, an office with an entrance separate with another business, a dedicated business line, posted office hours, a sign of a certain size with lettering a certain size, a bathroom, a desk, a filing cabinet, your business location needs to be visible from the main road…. Some states require you to have a signed agreement with a licensed mechanic, a one year lease for your business location, some require a physical code inspection by an dealer license inspector (a codes inspector) of your car business location where other states will allow you to send pictures.

You will want a filling cabinet with a lock for security of your documents. A website so people can find you online! A place to keep your dealer plates safe (and trust me, keep up with your dealer plates! You are responsible. Know who has them and what they are being used for! The safety of your dealer plates is important!)

10. How Long Does The Dealer License Application Process Take?

The dealer license applications process varies state by state. The number of forms required varies too. The department (usually DMV) that handles the dealer licensing varies state by state also! In most states, there is a dealer licensing board or DMV department. In most states, you will have your dealer license within a few weeks (some states a few days!) of submitting your applications form. UNLESS, it gets rejected for one reason or another. For example, your state probably wants the expiration date of your BOND to match the expiration date of your lease with the SAME exact names and signatures. States LOVE to kick back dealer application forms for stupid stuff! This will delay your application for a dealers license. Although the registration process may be frustrating at times, it is the price of admission AND after you get your dealers license, lobby your state congress to make it harder for others to get a dealers license! 🙂 TIP: If you have ANY concerns, contact the folks how issues the dealer license and ASK them questions. I have found them to be very helpful over the years! They are government paid employees, call and ask questions! – they are there to help!

A Few Extra Thoughts For You:

    1. If you are wanting to operate a REAL used car business, don’t waste your time and energy trying to figure out how to get around the dealer license requirements. I get so many questions like “how do I get around from getting a dealers license?” Folks… please! Just step up, do the right thing, and get your motor vehicle license – just do it! Get the dealer license application, go through the application process, and get rolling. Once you are issued your dealers license, you are off to the races! All the auto dealers in your town has done it – so can you.

      Here is a hint…. Getting your business license and dealers license is NOT the expensive part of this business folks – you still gotta buy cars! Getting your dealers license is simply a cost of doing business. AND….. The profit potential FAR exceeds this price! (PLUS, its kinda neat to drive your inventory around with a dealer plate on it.)

    This download will cover items such as:

    • Insurance
    • Bonding
    • Location Analysis
    • Typical Paperwork
    • and more….

    dealer license application