Posted in the Auto Dealers Forum
#1 Nov 1, 2006
this process it seems is extremely arduous... all i want is a damn dealer license to get into the 'real' auctions. i checked requirements for PA, and NY, and they seem like they are fairly involved... does anyone know if there is an easier way. Whats the easiest state to get a dealers license in? i basically just want to go to auctions, and not have a stupid lot with all the stupid red tape requirments of signs and what not... im only lookin to sell aoubt 30-50 cars a year. anyone know anything? thanks.
#2 Jan 31, 2007
If it was easy to get a dealer's license, every apathetic monkey like this guy would have one.
You don't think that the zoning, licensing, insurance, and other legalities and training is to deter people like this?
If it was a 1,2,3 process everyone would have a license, auctions would be hammered by buyers, costs would go up and prices would come down. Sending a godfathered industry to the scrapyard.
If you want in, it takes ambition. If you get in, it takes work. If you want to succeed, it takes knowledge of the industry.
#3 Sep 5, 2007
I want in where can i learn about the process. ALSo can someone get bonding if they filed ch7 bankruptcy. thanks
#4 Sep 6, 2007
ive been trying to get my retail dealers license in ca for the past 5 months. its a HUGE pain in the ass. no seriously, huge. between the DMV,DOJ and the state of CA its nearly impossible. zoning laws, background checks and fingerprints, its all just ways to keep you from getting in. my criminal background check took 4 months alone and came back w/ a wrap sheet that i don't even have. now i have to hire an attorney to get that cleared up. ive been paying rent on an office the whole time because to fill out all the other necessary items i have to have a business address. its effin ridiculous.
#5 Sep 8, 2007
To everyone posting about getting or renting a used car dealer license there are a few things you should know.
Most states around the country are making it harder and harder to obtain a dealers license because of two main things:
1. Local townships and such do not want every moe, larry and curly getting licensed because they clutter their towns with little car lots. Most people who do the minimum to get a license are out to make a fast buck and when things get tough, they make shady deals and cause problems for the local community and for the larger dealers.
2. The larger dealers with big money invested do not want you to take away sales and overall give a bad name to the business. These dealers give thousands every year to politicians and local officials to pass laws and legislation to keep you from getting licensed. Basically the small non franchised guys are not wanted in most states and areas.
I speak from experience being in that I was in the business in PA for years. I have spoken to a lot of people regarding the matter. Most states figure if you jump through enough hoops and get your license, your are a person or business worth taking a shot on. They figure that if you cannot meet any one of the requirements down the line, you are not worthy of making a living. Lets face the facts, there is a good profit potential in this business and with the lack of education needed to operate, it is a no brainer business. You for sure need to be educated in vehicles to know what your doing but with profit margins from $500-$2000 a unit, you can make some money.
Do not think of "renting" a dealers license or becoming a "buyers agent" for a dealer using your own funds and making deals. In almost every state in the country this is illegal. Yes I said illegal and I know that in PA it is considered a misdimeanor to rent a dealers license. Most think if you get a salesperson license under a dealership name and work for yourself makes it legal but it does not. You have to be listed on the dealer license paperwork as a OWNER of the business in order to make it legal and how many of the guys willing to rent you a plate and give you access to auctions are willing to do that. You don't know them and they don't know you. Most are not will to take the risk of losing their license to get a measly $300-$500 a month. Keep that in mind. My opinion is to get together with a couple of people you know and get a license together to offset the costs and the burden. If you only want dealer plates to drive around cars or get good deals on cars from auctions for friends and family, consider a wholesale dealer license in Michigan or New York. These will allow you to buy @ auctions and have a plate or two without alot of the headache. These states requirements are lighter than most and Michigan does not require a bond for wholesale dealers. The biggest thing is that with this license you cannot buy or sell to or from the public at all! You can buy and sell to and from other dealers and still make money, especially if you are a mechanic and can buy in-op vehicles and repair. You can sell to dealers and not have to deal with the public and sales tax etc. Just wanted to let all you guys and gals out there know.
#6 Sep 8, 2007
wholesaleing sounds good. thanks
#7 Sep 11, 2007
Jbird, have you ever thought of blogging about your dealer experience? People with real knowledge about the auto dealing reality can really contribute value to both potential customers and fellow dealers alike. Talk to me if you're interested chataukwa 'at' allmail 'dot' net.
#8 Jan 22, 2008
Our company offers a program that beats the high overhead many retail and wholesale dealers struggle with these days.
If you are an individual who is interested in LEGALLY buying/selling cars RETAIL or WHOLESALE, check out our website to see how our program works.
Members of our dealerships receive:
Insured Dealer Plate
Access to Dealer Only Auctions (Nationwide)
Free Training and Support from Auto Professionals
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Ask about our referral program!
References are available upon request.
*Serious Inquiries Only Please*
#9 Jan 22, 2008
Don't bother unless you want to loose money and get fined by your home state. This is illegal no matter how you spin it!
#10 Jan 23, 2008
You are wrong,this company really makes you a partner in the company
#11 Jan 23, 2008
They might make you a "partner" in the company, but there are a couple of things you should consider
1. They can terminate your "membership" in their company at any time and you have no recourse to recoup money.
2. You cannot sell the vehicles you purchase at retail to the public unless you conduct the sale at their retail lot and perform a drafted sale contract. Anything else such as selling from your driveway especially if you live in another state is major league illegal and you will be fined and possibly charged with a misdomeanor.
3. Basically you can only wholesale to other dealers and the novice just getting into the business will find it hard to make any money.
So before you say that I am wrong, get the facts. I am a registered, licensed and bonded dealer with 13 yrs exp and know the laws very well in almost all of the states. I personally know people who have been fined and arrested for these using these tactics to buy and sell cars and they wish they had not done it. Now with a criminal offense on their record, they cannot get their own license.
#12 Feb 5, 2009
For ten years (1994-04, I operated the SECOND largest "Multi-Dealer" complex in the state of New Jersey until the DMV and the Consumers Affairs
people started realizing that TO many small independent retail/wholesale dealers would be
difficult to "police"! My firm, Abecco Auto Group,
provided ALL the necessary requirements,offce/
inventory space, signage, etc for each dealer who
was totally independent;we only provided (approved
local and state)real estate and actedas the landlord.
The DMV would "road block" the licensing process by demanding each dealer to maintain on site hours
office size, a minimum of 70 sq ft,a safe for
documents,etc. They (DMV) would deliberatlly procastinate the licensing process in hopes the
"dealer applicant",(our tenant, would ultimately
become frustrated and give up the idea: this would then result in lack of demand for space to
to landlord (us), in hopes that the facility
would no longer be financially feasiable and the
landlord would close it'e doors! NO longer a place place these propective dealers could secure
a dealer license! SO I CAUTION anyone who thinks
ther is a "shortcut" in getting a (used) car dealer license, I can assure you that sooner than later the states DMV and Attorneys Office will be
investigating the provider and each license holder
and most likely, attempt to shut you down!
#13 Feb 11, 2009
Christian it is ILLEGAL to sell vehicles without a 2nd class motor dealers license from the city in Massachusetts where you are doing business.
#14 Feb 12, 2009
Chistian. If you are a Partner, your Name Must be Placed on the Dealership, On The Bond and on the Insurance.
you would not have to Pay $100 for the Accual Dealer to sign you car Over to the new Buyer you Own the Company you are a PARTNER...
Get your name on the DELERSHIP then you are a Partner.
#15 Feb 12, 2009
Become a Real used car Dealer. With a Real Dealer License. A plate registered to you... Only 5k a year for full Partnership. Locations being Opened Nation Wide.
Dealers Auctions, Training, Support, web site and all the help you need to make sure you are Making WE ALL MAKE A Profit.
You can also become a part of this Explosion and help start the next generation of auto Dealers Business...
Please write for more details.
Dealer Partner::: become a Part of a Dealership 5K.....
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write me at [email protected],com
#16 Feb 12, 2009
Sorry we are in the Boston MA. area. Do not know why it is showing Eddington ME.
#17 Feb 12, 2009
It doesn't matter, you're a scammer regardless.
#18 Jun 4, 2009
You are right. This is my first day that I am looking for some info about the process, and I know I need to do more, so everything fits perfect for me and know what I am doing. Thanks
Always Confident in my projects!
#19 Aug 28, 2009
I think too many people already have access to dealer auctions or at least they know what the wholeale price is. That's why people on ebay know the auction price and nobody is giving you penny more. You who already have dealers licenses don't rent it out or give access to others. Why sell a gun knowing that it will be used against you?
#20 Feb 3, 2010
I NEVER REALIZED HOW HARD IT WAS TO GET INTO THIS LUCRATIVE INDUSTRY.ALOT TO DETER YOU.IF YA WANNA PLAY THEN YA GOTTA PAY.I AM GONNA DO IT JUST TO DO IT PART TIME.ANY WAY TO BUY A LIC.,ANYONE WILLIN TO DO SOME BUISINES IN MA.CHOP UP A JOINT OR SOMETHING.I HAVE THE STEW AND THE BALLISTIMO.BEEN DOIN GOOD ON EBAY AND C.L..TIME TO TAKE IT THE NEXT LEVEL.HOP ABOARD AND LETS GO FOR A TRIP TO THE BANK FOR A DEPOSIT.
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