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How would my freind go about getting an auto dealer license ? To buy & sale cars at auctions ?
23rd October 2010
Posted in: Auction FAQ | | Comments (2)
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What state are you in?
The general process is:
1) notify the DMV in your area by writing that you intend to apply for a dealer license, there are several inspections that you must submit to.
2) have about $3500 cash in order to get insurance and a bond…a good credit rating is also sometimes required to get a bond.
3) some states require a prelicensing course for auto dealers, you may or may not have to take this course. It is expensive, but very easy.
There may also be differences in your state regarding the requirements for a retail license (selling cars on a car lot) or a wholesale license (buying and selling at auctions only). Good luck!
Comment by Bird — October 23, 2010 @ 11:26 am
Contact your Secretary of State’s office. They have the information for all small business applications.
Becoming a used car dealer is an expensive venture. It takes tens of thousands of dollars to get the financial backing, the insurance and the bonding required for a dealers license.
In most states it also takes a physical location ( a used car lot) with a building, a sign and a business phone.
Comment by mccoyblues — October 23, 2010 @ 11:26 am