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I am thinking about starting the application process for a car dealer license. I want to sale used cars in Colorado that I will buy from auctions. Is a lot a necessity or can I sell the cars from my house.

3 Comments »

1. 

   NO-NOT AT ALL

   I am a dealer in Colorado and what you want to do is against the law. If you even have the intent to make a profit you need a dealers license (will provide law in a second) then you will have to have a retail location, and their are many rules about that including bathroom. must be paved, insured, and it goes and on. Must have $100,000 in assets.

   Source:
   Colorado Statutes/TITLE 12 PROFESSIONS AND OCCUPATIONS/GENERAL/ARTICLE 6 AUTOMOBILES/PART 1 AUTOMOBILE DEALERS/12-6-102. Definitions.

   12-6-102. Definitions.

   (13) "Motor vehicle dealer" means a person who, for commission or with intent to make a profit or gain of money or other thing of value, sells, leases, exchanges, rents with option to purchase, offers, or attempts to negotiate a sale, lease, or exchange of an interest in new or new and used motor vehicles or who is engaged wholly or in part in the business of selling or leasing new or new and used motor vehicles, whether or not such motor vehicles are owned by such person. The sale or lease of three or more new or new and used motor vehicles or the offering for sale or lease of more than three new or new and used motor vehicles at the same address or telephone number in any one calendar year shall be prima facie evidence that a person is engaged in the business of selling or leasing new or new and used motor vehicles. "Motor vehicle dealer" includes an owner of real property who allows more than three new or new and used motor vehicles to be offered for sale or lease on such property during one calendar year unless said property is leased to a licensed motor vehicle dealer. "Motor vehicle dealer

   Net Worth and Credit Score Changes

   Effective 10/1/10 the Dealer Board will require Dealer/Wholesaler applicants to have a net worth of $100,000 and an Experian Vantage credit score of 701 or higher.

   This is actually Lower, it was $200,000.00

   It’s not as simple is buying a few cars and selling them at your home.

   You Need a trade name
   sales tax license
   Employer Identification number

   Well a ton more issues

   You can NOT sell 1 car out of your house if you plan on making 1 penny

   Comment by $1,539,684,631,121 Clinton Debt — May 1, 2011 @ 11:26 pm

2. 

   The Colorado Secretary of State’s website should have all the rules and regulations that need to be followed in order to obtain the proper license.

   As a wholesale dealer you should be able to use your home address. A retail dealer will need a physical business location but the licensing process will tell you what you can and can’t do for the license you seek.

   Comment by mccoyblues — May 1, 2011 @ 11:26 pm

3. 

   You can get a wholesalers license using your home address. But you wont be able to sell to the public.

   Pretty sure its the same way in nearly every state.

   Selling cars out of your house as a dealer is illegal unless your house is your car lot, in a location zoned for business with proper licenses.

   Comment by whocares — May 1, 2011 @ 11:26 pm

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