How to Get a Wholesale Auto Dealer License
A wholesale auto dealer license enables you to sell vehicles to other accredited dealers and purchase cars at dealer-only auctions. To make sure that you have achieved your dreams of becoming a wholesale auto dealer, you will want to get licensed. What’s a wholesale auto dealer license? Well, you need to know that a wholesale auto dealer license is used to make sure that businesses running across the market are practicing within the law. A license proves that a car dealer has been permitted and has been scrutinized to a higher standard and that they have a valid bond and insurance to keep them safe from fraud and malpractice. Unlike used and new car dealerships, you should know that wholesale dealers don’t sell vehicles directly to the public. Rather, the wholesale auto dealers sell vehicles to other dealers and at auction. Since wholesale auto dealers don’t sell vehicles on the retail market, a bigger number of states tend to enforce minimum licensing requirements. However, it’s prudent to make sure that you have established rules in your local area. With this, you will have the chance to have a newer wholesale auto dealer business running around the clock.
How can you obtain a wholesale auto dealer license? To get a wholesale auto dealer license, you will be required to submit a complete application to the Department of Motor Vehicles (DMV) in the state you are planning to start this business. You will also be required to make sure that you have fulfilled all the licensing requirements in your local area. Usually, these requirements include having a recognized business location and paying for the required application fees. For you to obtain a wholesale auto dealer license, you will need to complete major steps. Below are some of the steps that you should follow.
First, you need to make sure that you have received a state business registration. Without a doubt, this is one of the key requirements that you will need to fulfill to get your wholesale auto dealer license. To run a business in any state, you need to make sure that your business has been licensed on a government stage. However, we have some states that require businesses to be accredited at the local level. It’s prudent to make sure that you have registered your company and trade name with the Secretary of State. If you are looking forward to operating in several states, it’s important to make sure that you have applied for various types of licensing, depending on the state’s requirements.
Secondly, you are supposed to find a location for your dealership and look for approval. You need to know that some states need wholesale auto dealers to operate in well-established salesrooms. But, now that wholesale auto dealers don’t sell cars on the retail market, a good number of states don’t require them to have a unique business location. If state laws require you to have an established business location, then you might need to have a lot of display area. It’s also important to make sure that you have followed the local zoning rules to display your licensing certification if you will allow the entrance of customers to your business.
In summing up, other steps that you should follow to obtain a wholesale auto dealer license include completing your wholesale auto dealer license application, submitting your application, and paying the required fees.