How to Become an Auto Dealer

It is a crime to sell more than three vehicles in one year in almost every state of the country. This selling of vehicles by private and unregistered citizens is called curbstoning. To start an auto dealership enterprise you will need to become a licensed auto dealer;  this acquisition of license can be a complicated and lengthy process but the fruit of this hard work is very sweet. The fine details and registration requirement for getting an auto license vary from state to state. However, the overall process is very much the same around the country.

Steps for Becoming a Licensed Auto Dealer

The first step is to get a license. For that you will be required to take a training class or attend a preparatory seminar. After that you might be required to take an exam; this depends on the state you are in, and the rules may vary.  Next, get yourself a location where you can set up your office, car garage and showroom. There are certain zoning requirements for every state – make sure you meet the requirements and that the location is away from residential areas. Also select a name for your business; you surely cannot operate without that.

Decide whether you intend to go for selling of new or used cars. If your choice is new cars you will need to purchase a franchise agreement; in this case you will have to function according to the franchise providers. Fill in the required forms and obtain a surety bond as required by the authorities of your respective States. However the surety bond will cost at least $10,000 – it is a document that states your guarantee and agreement.

You might need to get loan from a bank to set up your new business. Getting office items like furniture, paper, stationary and most importantly the vehicles will require a great deal of capital. A reliable method for arranging the cars for your business is also required; you might rely on car auctions if you are new in this field. Auctions are a wonderful way to obtain cheap and good inventory as well as to meet the demands of the patrons as an auto dealer.

Arrange for you to be inspected by the DMV (Department of Motor Vehicles) for the certification of your auto dealership business. After you have passed the inspected you will receive your license and other mandatory documents. Lastly, choose a good strategy for advertising your auto dealer business. Make effort to stand out from the other dealers.

For more details login myautolicense.com

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Created on Dec 31st 1969 18:00. Viewed 0 times.

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