Car dealer licenseHaving a car dealer license can be amazing. You will instantly join the used vehicle dealers club and benefit from all the same advantages as the big boys. Learning about the right way to obtain the license and how to protect your assets from troubles that can arise is very important. Your car dealer license may take some effort but the rewards out weigh the work. Before we continue I wanted you to think about all the used automobile dealers in your area. These places make money or they wouldn’t still be there. The way to make reliable money is to find a business that works and copy the best model of that business.
There are websites that claim to have all the information you need to get your car dealer license for a price. The website I recommend for this info also charges, but it has a major difference. It provides the same info as the other guys for the same price but Don Massey is a successful dealer. He throws in 7 bonus guides that teach you how to use your license to not only maximize profit but how to avoid the many pit falls that await a new dealer! Let me give you an example of the guides included in the bonuses. After you are a dealer you will want to go to a wholesale car auction. Your first visit to a wholesale auction can be exciting but intimidating! This report gives you all the rules that all attendees to the car auction must follow. My favorite guide was how to deal with taxes and the IRS. It is the actual copy of the IRS audit guidelines for car dealers. Use this manual to set up accounting and business practices so you don't get in trouble. You do not want to spend profit on penalties. Now I should also mention that Dons latest successful venture has been on Ebay's car auction site. He put together a user resource guide for this tricky subject and throws this in as well! If this interests you go ahead and read on. If you want to go directly to Dons web page now Click Here!
Why Get a car dealer license?
You can get into private wholesale dealer auctions only dealers can attend. This is the same auctions that all used car dealers get their cars from, including mega-used car dealerships!You can go directly to new-car dealerships to buy wholesale cars with "closed bids" No state limit to how many cars you can sell per year. Cancel your personal registration and insurance and drive around dealer cars with dealer license plates. No need to waste time "wheeling and dealing” and hunting through ads. Your car dealer license makes you a small business owner, entitling you to gold corporate credit cards, small-business loans and other fringe benefits. Tax benefits! "Write-off" just about anything, including gas receipts, auto repair receipts. Enjoy used vehicle dealers discounts and make tax-free purchases from almost any business including factory car dealers and parts stores. Buying wholesale cars for yourself, your friends and family members. You'll never get ripped off from a dealership again! Without a car dealer license, you are missing out on all these benefits and you are losing thousands of easy dollars. When most used vehicle dealers buy a car to sell at retail, their goal is to make at least $1,000 profit AVERAGE on every car they sell. Of course it depends on the price range of the car, but most dealers would be happy to walk away with a thick stack of money for just a few hours work. Some used vehicle dealers make well over $1,000 per car. These dealers would actually be mad if they only made $1,000! A "small" retailer sells about 10 cars per month, so lets give a $1,000 average. That's $10,000 per month or $120,000 per year.
A dealer with a medium size lot on a good location can easily sell twice that amount per month. That's 20 cars, or $240,000 per year. If you find yourself behind for the month learn how to sell cars on E-Bay This will keep the ball rolling!A full-time operation with a large lot on a good location sells much more cars. Most dealers I talk to who do high retail volume sell 50-100 cars per month. 100 cars per month is $1.2 million dollars per year. Keep in mind: This kind of money requires many employees and a full-service operation. Another advantage to having your car dealer license is once things get rolling you can offer financing on your used vehicle inventory. This completely removes the biggest barrier to selling a used car. Most people want to buy the car but do not have the money. If they walk off your lot to try and find financing on their own you probably will never see them again. When you offer in house financing you are giving your buyer the chance to leave your dealership behind the wheel of the car in question. Another huge advantage of having the buyer finance from your store is that the lender in most cases offers points to the dealership for sending them a customer. Points are a nice way of saying kick back.
Car dealer license rulesCar dealer license Requirements State of Colorado Application: Submit original application and addendum. All requested information must be provided including all boxes marked "yes" or "no". All "yes" answers require an explanation. Application must be signed by owner, corporate officer or LLC member. Credit Bureau report: A credit bureau report will be obtained on every applicant. This report is an indicator of an applicant’s financial fitness. The Dealer Board requires an empirical score of at least 600. It is suggested that if you are not sure of your score that you contact Trans Union to run your own credit report. If derogatory information appears, it must be resolved or explained in an attachment to your application.Background check: A background check will be done on every applicant. If the applicant has ever been arrested, charged with, convicted of or pled no contest to any felony or misdemeanor crime in the past ten years, excluding traffic violations, supporting court documents must be included with the application. Place of business affidavit: Complete the appropriate sections and sign. Place of business for dealers must satisfy the following requirements. Permanent enclosed office with electrical service and restroom. Space to display one or more vehicles. Open to public a minimum of 12 hours a week. In compliance with local zoning. Used exclusively for the dealer business or incidental businesses, such as parts, repair, etc. Sharing the site with another business owned by another person is NOT permitted.
A permanent sign displaying the car dealer license and business name, clearly visible on premises owned or leased by dealer. Wholesalers are not required to meet the place of business requirements, but must maintain an office in which all vehicle records are maintained. Written examination. Mastery Exam - Must score 100% on open-book exam. Each owner or corporate member must have completed and submitted the "Mastery Test" or they must be currently licensed as a dealer or salesperson.
Business Documents. If filing as a corporation or an LLC a copy of the stamped articles of incorporation/LLC filed with the Colorado Secretary of State must be submitted. If the corporation is out-of-state a copy of the Certificate of Authority is required. If filing as a partnership a signed copy of the partnership agreement is required. Franchise agreement. If applying as a franchised dealer please ensure that the manufacturer is licensed to do business in Colorado. You may ask for a copy of their license or contact our office. If the manufacturer is licensed you will need to obtain a letter from them stating that you are authorized to sell their product line. Dealer plate affidavit: Application for dealer demonstration and full-use plates must be completed and signed.
Check payable to Department of Revenue. See fee schedule. Bond: $30,000 surety bond in legal name and D.B.A. Bond must be signed by owner or partner, corporate officer of LLC member.
New Jersey Dealer LicenseAll new and used car dealers, leasing companies and Auto Body Repair facilities must be licensed. Applications for license are submitted to the Dealer's Unit, Business License Compliance Bureau. Dealer plates and registrations are available only from Trenton. New car dealers must be franchised to sell new cars. A special license is required for used car dealers. Application packages include the application form, affidavit, signature card, security check authorization waiver form, and supplemental application form. Dealer License Fees: $100.00 for automobile dealers $350.00 for a two-year Auto Body Repair license fee CALL: 609-292-4517 You can also go to your states official web site and search for used vehicle dealers license requirements. Give this dealer licensing page a  Custom Search
For more information about this website and the creator vist the homepage from the next link
Car questions answered
|
