An auto dealer license allows you to legally sell
brand new or used motor vehicles. Auto dealers basically own the cars being
sold and make their profits by these sales. The business simply revolves on
buying and selling cars all for the love of getting profits.
An auto broker license allows you to legally
serve as a middle-man to negotiate between an auto dealer and a buyer. As
middle-men, auto brokers haggle in the place of the buyer to negotiate prices
with the auto dealer. They gain their "profits" through commissions
when a deal has been sealed between both parties.
The Difference in Requirements
Obtaining an auto dealer license would require
several documents and a lot of money from surety bonds. Auto dealer licensing
procedures can be time consuming and very tedious because there are several
states that impose ridiculous requirements and procedures. Furthermore, you
might even run into a car dealer friend that would even discourage you from
obtaining a license by telling you that there are even more ridiculous
requirements that, in fact, do not exist. Only the most determined can shake
off these myths and discouragements and become a licensed auto dealer.
The auto broker licensing procedure, on the other
hand, is simply twice the hassle of an auto dealer licensing procedure. This is
because you will need to have an auto dealer license in able to become a
licensed auto broker and that's just half the battle. If you think getting an
auto dealer license can be ridiculous, you'll find being auto broker even more
discouraging. However, like most jobs, getting these licenses would eventually
pay off. After all, there is a lot of money in this business.
The Difference in Benefits
Going through auto dealer licensing procedures
and finally obtaining your license will yield benefits that would make it
eventually worth it. Aside from monetary profits, you will also gain access to
private wholesale dealer auctions, the very same auctions that almost all used
auto dealers get cars from.
There is also no
state limit to how many cars you can sell per year ̶ and you most definitely
need this to increase your profits. Needless to say, the more cars you can
sell, the more cash you'll make. You can also get tempting dealer discounts
factory car dealers and automobile parts stores. What's more, you can even make
tax-free purchases! Furthermore, you can buy wholesale cars for yourself or for
your friends or family. Never again will you get ripped off from car
dealerships!
As far as the benefits for auto brokers are
concerned, all the benefits of an auto dealer can be enjoyed by auto brokers.
Since becoming a licensed auto dealer is required prior to becoming a license
auto broker, auto brokers can enjoy even more benefits because they are can
assume the role of a dealer and broker anytime they wish. If you wish to gain
even more clients, you can apply your auto broker skills to your own auto
dealership business.
It isn't common
why there are a lot of auto dealers that find auto brokers as competitors.
Considering the fact that they are auto dealers themselves, auto brokers have
it easier compared to auto dealers because they gain commissions and don't need
to worry about most of the paper work.
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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