How to get a Florida Dealer License without a car lot
How do you get a Florida used car dealer license without a lot or car lot? Well actually, you don’t. The state of Florida will only issue you a license with an approved commercial location, that has to have a pre-inspection most of the time. I know you may see all sorts of fake news around the internet that say you can, but don’t believe it. Some people purposefully use the phrase “how to get a dealer license without a car lot” to sell and market some of the creative programs out there that exist for people who just want access to select Dealer Auctions. They may not be ready for The financial investment, time and energy necessary to run a Licensed Dealership. But don’t be fooled, because this is not a license. It’s a network or program. If you want the ability to sign your own titles, control your own dealer plates, your insurance, and surety bond…then you have to get a physical location so your state issued license can hang on the wall. No exceptions. If you want to consider my help, my name is Gerard Fairley and I run a consultant firm in Florida that specifically helps people get their Florida Used Car Dealers license including a suitable facility or location. If you are sure that you want actual license and not a program, then keep reading as I tell you about this first and most important step, and help you avoid a few pitfalls and money traps.
Do you need a Florida Dealers License?
Probably, if you are thinking of this question, chances are you may need it. If you are flipping cars on the side with the intent to make a profit, then you need a Dealers License. It’s a big myth, but your dealer license needs, has nothing to do with selling 5 cars in a calendar year. That is just a way to measure and guide your actions by, and for the state to have a measure to flag your sales movements by. If you are trying to figure out how to circumvent this state law and sell cars while keeping the titles open, or something else creative, then you are flagrantly breaking the law. If you want to do your business legitimately and not have to look over your shoulder, then go ahead and get your Florida Dealer License. You do have to have a car lot , however you can operate out of a small office facility with 2 parking spaces attached in the lease. Or you can operate out of a small lockable warehouse that holds 2-4 cars. Operating as an auto broker out of an office location, gives you the same license as a company that has 150 car lot location. You have the same license and ability to register your Dealership with any auction you like. You have the same license and ability to operate wholesale and retail in the state.
What is a suitable Location for a Florida Dealer License?
Perhaps you are thinking you can operate your Florida dealership from home if your home is zoned in a residential / commercial zone. If you cannot have (create) a separate address from your home address for your Dealership, then the answer is most likely no. Don’t take shortcuts on your location.The office must be in a permanent structure. The office must have a minimum of 100-square feet of interior floor space excluding any hallways, closets or restrooms and a minimum 7’ ceiling. Florida Used Car Dealer License Requirements says that all prospective applicants are advised to contact the regional office serving that area and ask for an inspection of the location before committing time and money at a location that may not meet state requirements. I have seen people go to the class first (thats ok) or start looking for insurance or bonding (why, do this without a location?). However, the most important and to me the first step is deciding on your location budget. What can you afford o spend on your Dealership? What location do you wish to have it in? Are you looking for the cheapest route or a location on a busy strip ? The small cheaper locations are in the north up in Jacksonville, Florida. As you go down towards South Florida and Miami, the prices creep up quickly. Once you have a budget, contact a real estate professional to do the leg work of sourcing out a few legitimate locations, so you can choose one. If you go this route, you can be more sure that your location meets the proper state zoning codes. The most important first step to getting your Florida Dealers License is to find you a suitable location.
The state says you must met local zoning requirements, When the state says suitable, it wants you to have a small area (100 square footage is minimum) that can support a desk and locked file cabinet for your customer’s records. Suitable location or facility means a few things. The space itself has to be within the proper commercial zone code that supports Dealer License. Not all commercial zones support this type of business. The state may issue the license, but the city and town basically decide where you can have your business. And this is what the zoning codes are for, the city to organize and classify business locations. Suitable also means that it has to be “good enough” for customers to come in and transact business with you. This may be a little more subjective, but you prepare to have an inspector come in and take a look around during your application process. You have to have a location that is an established place of business which to include a sales room or sales office. You have to have a landline phone installed. You cannot use a mobile phone or voip, or computer line. The land line phone number has to be listed in the company name (business white pages) . If you want to qualify for a floor plan, you want to get a bigger location. Usually the company will send out a field representative to insect your location. Hey want to make sure your location is large enough and “good looking” enough to hold cars in and safely hold the public. The company wants to make sure that if they lend you money to buy cars (for your floor plan), they will get their money back, on time.
How to get a suitable location?
Finding locations for your used Car Dealership in the state of Florida is not terribly difficult. What trips most people up is they don’t follow up with checking on the zoning first. What I have seen many times is a person tell me, “Hey it was zoned awhile back when I checked, maybe a year ago” , or I hear “Other dealers are in the building or location that I’m thinking about, so it should be good “ You have to remember that the city can change the zoning at anytime, leaving certain business grandfathered in, while keeping out new tenants of a particular type of business. So now you are a new business trying to open up and you find out that the zoning has changed and your application is rejected. As I stated earlier, my company does this for you with our Florida Dealer License consultant services pack. However, you can utilize Craigslist or other listing platform to find locations or contact your local realtor who should have connections. If you use my firm to set up your Florida Dealership, we have relationships with landlords around the entire state of Florida. We can always find what you need, depending on your budget. You can expect to pay $550 per month on the low end for office space (with 2 parking spaces) or lockable warehouse spaces staring from $650. As you approach the southern parts of Florida into Miami, small location rents jump to $1300-$1700 per month. Remember that you have to have 2 month up front to secure your lease, and then the wise conservative business practice says that you should have 4-6 months of rent money sitting in the bank collecting dust. If you do not, then you may be underfunded. Before you run and put down money on a location, you have to make sure that the city allows auto dealer license to be issued at a particular address. This usually starts with a visit or phone call to your local city or county records department to get steered to the proper agency or (zoning) office.