Car Dealer License

 Ever thought about making some extra money buying and selling cars?  The car business has always been a money making business and many private dealers do really well buying and selling cars.  This page is dedicated in helping you understand why you need a dealer license and the possibilities it will open up for you.

 Many people wonder why they even need a car license.  Did you know it's ILLEGAL to buy and sell cars privately?  That state has made it illegal to sell more than 2 cars a year privately without a dealer license.  The biggest motivation to get a dealer license is so that you are not doing illegal business and avoid the horrible headache the IRS would surely give you if you do not have one.

Dealer licenses not only help you stay within the state's legal limits, but it opens up many doors to help you make even more money.  Big auction houses like Manaheim and Brashers, which are all over the nation, are the main ways dealerships get cars.  You CANNOT even attend these car auction houses without a dealer license.  You can get extremely DISCOUNTED cars ar these auction houses and get some vehicles for pennies on the dollars.  These auciton houses are where big franchise dealers, banks, and auto lenders bring cars that have either been repossessed or are being liquidated which can help you make some major profits!

 Getting a car dealer license is much easier than you think.  It's as simple as calling your motor vehicle division of your state and they usually have a packet that shows you everything you need to do to achieve the dealer license.  State government has different requirements that pertain to each individual state.  Some state's require that you have a physical location to do business while other state's do not require this. 

There are also many different third party companies that offer traning that is recognized by the state and can also help you get your dealer license and make your life much easier.  These third party companies also will offer products like, dealer license plate covers, order forms, state required paperwork, and anything else you can think of that a dealership would need. 

The fact of the matter is that if you are going to do business buying and selling products, you have to play by the rules.  You can still sell cars in a more private manner, but you have to meet the state requirements to save you a lot of grief, and trust me, it's grief you want to avoid.

 Making money in the car business is more simple than people make it out to be.  The key is to have low overhead and make sure each car you have will make you at least one thousand dollars profit.  The other main KEY is to only keep your cars for 24 days and no longer.  If the car has not sold within 24 days, run it back through the auction.  Too many dealers take a bath on their cars because they hang onto it way too long and lose all the value in the car.

The other thing to remember when you are buying cars is to NEVER pay more than MMR value for the car.  MMR value is the average price the car is selling for on the auction.  If you pay less than this amount than you are safe because if you have to run the car back through the auction after 24 days you will still make your money back on it and save your cash flow.