An auto dealer license enables you to sell retail
or wholesale motor vehicles. These vehicles may be sold to the general public
or to other dealers. In some states, they impose a limit of a certain number of
vehicles you are allowed to sell per year. When you have your auto dealer
license, you are not required to sell a specific number of vehicles.
To avoid getting into trouble with the law, it is
advisable that you must secure an auto dealer license prior to starting such
business. Failure to comply and being caught in the act will result to
conviction of misdemeanor with a fine up to one thousand dollars. You may
either get fined or thrown in jail for up to two years, but in some cases, you
might even get both.
The Department of
Motor Vehicles issues the corresponding type of license relevant and
appropriate for your business. It also issues several types of licenses
intended for buying, selling and trading motor vehicles for those who are
interested in this kind of business. Each license is only valid for one
calendar year or 12 months and this should be displayed in your establishment
for all customers to see. This is important in able to ensure you are abiding
by the laws of your state and making sure to the customers your business is
legit.
A license is entitled to only one dealer at one
establishment and it is not transferable from one dealer or location to
another. The fee for obtaining a license is usually $50.00 but don't expect
that's the only amount of money you'll ever spend in the process.
Steps on obtaining an Auto Dealer License
On obtaining an auto dealer license for the first
time, you will need to contact your local Department of Motor Vehicles. Each
state has its own certain requirements and you will need to familiarize
yourself with yours to avoid errors on your part. Next comes necessary
paperwork to fill out and you will be given information along the process.
In most states,
there are three things that are usually required: Passing the Department of
Motor Vehicles test to get a car dealer license, setting up a properly zoned
location for your establishment, and getting the location approved by the
Department of Motor Vehicles inspector.
Additional requirements needed to be fulfilled
that would make it legal for you to buy and sell motor vehicles include the
following:
• A business license ̶ prior to engaging into auto
dealership,you still need to secure yourself a business license since you will
need this before you could even start a business of any kind.
•
A business
plan ̶ it will obviously help you set things in motion and help you plan on
what's ahead. The more you develop your foresight for your business, the more
effective and successful your business will be.
• A passing background check ̶ aasicb and common
check from employment to business, this will determine your record and if you
are worthy to engage in any business at all. Considering the
fact you will need a surety bond, most states and most bonding
companies would surely be curious about your records and they would want to
check your financial and criminal records.
Dealers License LLC is a Greenville, S.C.-based firm that assists customers who want a wholesale or retail dealer license so they can buy and sell used cars at dealer-only auctions and the firm's own retail network. In addition, the company provides 24/7 coaching, mentoring and marketing assistance. For more information, visit https://www.dlcnetwork.com/.
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