How to get a Dealers License -you can download your free 40 page book (at the bottom of this Page). This is the beginning excerpt of the free ebook with the most important elements. Decide what you want to name your company. Decide what kind of business you are going to have..who you  are going to target..what local region and/or demographic…what types of cars..what prices points.  Jot this stuff down on paper…not just on a computer.  It will be useful to refer back to when you hit a little bump in the road. This is also the baseline of your business plan.

You are creating your own success story..based on a few key fundamentals. You are starting a used car dealership, so think of a name that reflects  your vision and passion.  Let’s get to work. Its helpful at this time while you are creating the identity (the brand or soul )of your company to think of a suitable website name (URL). In this day and age, you will in find and attract most of your clients online – thru various portals on the internet (social media, websites, YouTube, etc). Don’t agonize over this …but do give it some thought…especially from an SEO perspective.  SEO is search engine optimization. If you were focusing your brand in the South Florida area, you might use something like à  SoFloridaAutoMall.com …..or something like that. You want to put your mind on the idea that you want to build a up a digital representation of your brand. SEO is going to drive organic traffic to your website based on the type of content you have contained there. Content starts with your URL website name. 

If you plan to sell cars on an official basis…you will be carrying inventory of some kind. A website allows you to showcase this inventory at all hours of the day and night. You are just starting out so you don’t want to incur too many upfront costs; a simple website will do for now (you can scale up later as money starts to roll in). There are many outfits online that will sell you a decent template website for $250. Or you can create your own (wordpress, wix, etc.).

Another aspect to think about is creating a suitable email address in which to do your business. You can have a domain email address that looks more professional… such  as this:  gerard@floridadealerlicense.info or you can create something like à phillyautodealer4you@hotmail.com

These are the main tools that you will use to connect and stay connected to your customers and potential customers. You are running a professional business. The more you reflect this, the more you will get back in terms of high quality customers you will refer you to their own family, friends and professional networks This is good preparation for how to get your dealers license.

In this ebook how to get a dealers license, Im going to walk you thru the mechanics of how to get a dealers license thru your local DMV agency. 

Decide how you want to approach your auto dealership business. You may want to go very casual and not set up the business name, a website, etc..because its your intent just to buy a few cars a year, ride them around and just rese-sell them on Craigslist or something. Real casual..so you may keep your business discrete like that. Others of you want to set up an official auto dealership business. This ebook illustrates the steps …the work-flow of going thru the DMV process, and where to file for  your business license, etc.  Many people think about getting how to get a used car dealers license,but eventually give up – frustrated and discouraged in a maze of confusion and the cost.  They fall back into the trap of searching through ads every week, playing phone tag with ‘almost customers’,  and driving around town all day hoping to find a deal, while the licensed dealers are at the dealer auctions and new car dealerships buying cars at below wholesale.

Remember all states make it a misdemeanor crime to buy and sell cars (for profit) without an auto dealer license. States regulate this by putting a strict limit on how many cars you can sell per year as a private party.

SUMMARY – 12 step check list

Note: The particulars vary from state to state…but this is a very accurate description of the necessary steps and how to get a dealers license regardless of what state you live in…in order to be approved by DMV for your used car dealer license and get your metal dealer plate(s).

Step 1

PRE-LICENSE CERTIFICATE OF COMPLETION

When you research how to get a dealers license , you will see all states will require you to complete some kind of Pre-License course with an approved license school.  This Pre License certificate is required to obtain your dealer’s license. The certificate of completion from the pre-license class is usually valid for 6 months. Your local DMV will have a list of providers.

Step 2

BUSINESS CORPORATE STRUCTURE

Determine what your business structure will be, such as a corporation or LLC.  Remember, you are starting a used car dealership. I recommend working with a licensed professional such as an attorney, CPA or accountant to determine what the structure of your business should be. Options include: CORPORATION: S or C; LLC; LLP; SOLE PROPRIETOR; or PARTNERSHIP (Sole Proprietors working in partnership)

• If Corporation, a copy of Corporate Charter, Articles of Incorporation, and Minutes Reflecting Current Officers are required
• If Limited Liability Company, Articles of Organization and Operating Agreement are required. • If Partnership, a Partnership Agreement is required
• If using a Fictitious Trade Name or “DBA” (does business as), a copy of the filing

Step 3

FEDERAL EMPLOYER I.D. NUMBER

Obtain Federal Employer I.D. Number or Social Security Number and Affidavit.  Also known as EIN number.  Go online to www.IRS.gov (or) call or visit a local IRS office.

Step 4.

APPROVED PROPERTY LOCATION

The dealership location must meet specific location requirements and be approved by a DMV Compliance Examiner.  How to get a dealers license fast and easy is based on you having the property type of location. You will need to include a copy of your lease or proof of ownership with your application.

• Location Requirements:
• Cannot operate from your personal home residence
• Office must be a minimum of 100 square feet
• Must have enough parking spaces for the number of anticipated cars
• If sharing building, must have separate entrance and separate address
• Principle business must be Auto Sales
• Verify that a dealership is allowed at your desired location (Zoning regulations)

These are questions you may need to ask DMV :

• Can there be a dealership at that address or inside an area? If the answer is yes then also ask what is required by Code Enforcement.
• Does that governing agency have licensing requirements?
• What about Sign Ordinances?
• Does City Hall have their own requirements?

Step 5. Building Sign

Sign must be installed prior to submitting application. The sign must include the days and hours the business is open, and the sign must be visible from the roadway.

The sign must include the following:

• Days and hours posted
• Be visible from the roadway
• The sign image and dimensions must be provided to the compliance coordinator in advance

Step 6.

SALES TAX NUMBER

States require you to have a Sales Tax Registration Number. Go online to download your forms and apply for your state tax id number.

Step 7.

SURETY BOND AND GARAGE LIABILITY INSURANCE

You will be required to obtain a Surety Bond and Garage Liability (in some states) Policy coupled with an automobile policy for at least $25,000 along with PIP Personal Injury Protection of $10,00 or more

Step 8.

Finger Prints

Electronic fingerprinting may only be obtained from an approved vendor. Your local DMV will have an approved provider list. Some states require a more stringent background check.

Step 9. Deeds, Lease Agreements

A deed needs to be in the name of the dealership, not you. A contract is between the dealership and the landlord. If you own the property personally then you are also the landlord and need to register with the Department of Revenue for a sales tax number.

Step  10. Photos

Take photos of your dealership’s entrance, parking area and spaces for your application. Take photos of your dealership to include with your application.  1. Dealership Entrance 2. Display and Inventory 3. Parking area and spaces

Step 11. DMV AUTO DEALER LICENSE APPLICATION

You can probably download your state DMV Auto Dealer License Application. If not, go to your local DMV and pick them up. The DMV application fee is usually between $175 and $400.

Step 12 Finalize

Once your application is complete, ensure that you have proper permits from the state, county, and city for your business. At this point you are waiting for final approval and this is how to get a dealers license. .

Download your complete ebook how to get a dealers license:Complete 40 Page Ebook Download