In order to start a business selling vehicles, you have to get your auto dealer license. This is a process that varies depending on where you live, but you can start it by contacting your Department of Motor Vehicles or Department of Licensing to determine what the process entails. If you are looking to buy vehicles at a dealer auction and sell them at retail value to customers, a car dealer license is necessary. You will want to know what type of license you need, and whether you want to sell used or new vehicles. If you want to sell motorcycles, this is another type of dealer license you can apply for.
Figuring Out a Location
When you want to secure a car dealer license, figure out the location of your dealer lot first. The area where the lot is needs to have the right zoning as a vehicle lot. In some states, you may not need to have a physical location to get an auto dealer license.
Meeting the Typical Requirements
When you fill out your application to get an auto dealer license in your state, you will need to show that you have registered your business and it is properly set up. You may be required to go to an educational seminar before you are approved for your car dealer license. Other requirements include going through a criminal record check and showing that you have the insurance necessary to cover your business. You may need to pass a car dealer licensing test in your state as an additional requirement.
The Application Process
You can find the application to apply for an auto dealer license in your area at your Department of Motor Vehicles. It can take months for your application to be processed, so make sure that you have everything right the first time. If you are missing information, your application can be sent back and you'll have to start the waiting process over again.
Purchase a Surety Bond
Almost everywhere requires that you purchase a surety bond in order to obtain a car dealer license. This bond offers protection for your business and customers in the event that a deal goes bad. Surety bonds can reimburse a customer that doesn't get what they paid for and they sue your business.
You can become your own business owner with an auto dealer license. Start with your DMV and understand that the process can take some time. Get in touch with a company like Auto Dealer License LLC today to learn more.