Thursday, December 5, 2013

The difference between an Auto Dealer licensing and an Auto Broker licensing

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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