Many people wonder why they even need a car license. Did you know it’s absolutely ILLEGAL to buy and sell automobiles privately without a dealer license? That state has made it illegal to sell more than 2 cars a year privately without a dealer license. The biggest motivation to get a dealer license is so that you are not doing illegal business and avoid the horrible headache the IRS would surely give you if you do not have one.
Dealer licenses not only help you stay within the state’s legal limits, but it opens up many doors to help you make even more money. Auction houses like Manaheim and Brashers, which are located all over the nation, are the main ways dealerships get cars. You CANNOT even attend these car auction houses without a dealer license. You can get extremely DISCOUNTED cars at these auction houses and get some vehicles for pennies on the dollars. These auction houses are where big franchise dealers, banks, and auto lenders bring cars that have either been repossessed or are being liquidated which can help you make some major profits!
Getting a auto license is much easier than you think. It’s as simple as calling your motor vehicle division of your state and they usually have a packet that shows you everything you need to do to achieve the auto license. State government has different requirements that pertain to each individual state. Some state’s require that you have a physical location to do business while other state’s do not require this.
There are also many different third party companies that offer training that is recognized by the state and can also help you get your dealer license and make your life much easier. These third party companies also will offer products like, dealer license plate covers, order forms, state required paperwork, and anything else you can think of that a dealership would need.
The fact of the matter is that if you are going to do business buying and selling products, you have to play by the rules. You can still sell cars in a more private manner, but you have to meet the state requirements to save you a lot of grief, and trust me, it’s grief you want to avoid.
Greg writes articles about Car Dealer License and for Auto Dealer License