Hello all, I am brand new to the site and hope I can learn a lot about the industry. I have a question regarding acquiring a used car license or a license allowing me to sell vehicles. I've been reading MVC requirements for receiving a dealers license and it seems the initial cost is pretty large. They require a lot of 2,000 square feet and a minimum 100 square foot office with a desk, chair table, and business telephone(the specifics kill me). I was wondering is there a way to sell cars through advertisement rather then a display lot. To the point I want to know if it is possible to have a dealers license or a similar license that would allow me to sell cars with out a physical store front?
Thanks for reading and any advice would be appreciated.

Christopher

If those are your state's requirements, then that is what you must have. For example, in Texas, I need a surety bond, liability insurance, a sales lot with room for 5 cars, paved parking lot, a desk, 2 chairs, a landline phone, a sign with lettering so many inches high, a filing cabinet or a computer server in a lockable room, and a business name filed with the state.

I figured excluding initial inventory, and considering the lot for lease near me at $600 a month, that I would need $11,000 to get started with all those requirements, and would have to make $2,300 a month in profit just to break even.

One alternative is to split these costs and run your dealership as a partnership with other people looking to get a license. You put all your names on one license, then as you make money, you split off and get your own licenses later.

Another idea is to share space with another dealer and use his license and lot to sell your vehicles. Then when you have enough money and find your own lot, part ways and enjoy.

You can also in most states sell cars wholesale with a much simpler set of requirements (no more parking lot, sign, etc) BUT you are restricted to selling only to other dealers or at auction. There are a number of business models out there for car sales, these are only a few. There's also brokering and straight wholesale. But keep absorbing information and you'll find your niche somewhere.

Hello!!! My name is Will. i am also new here. Now when you have a dealers license, are you automatically issued dealer plates or is that a special program. I've heard some states have minimum requirements for like 25 sales per year and 1 year of having a license. I could be mistaken.

Depends on the state I would imagine. Here in Texas, when you apply for your license, they ask you how many plates you want to buy at like $95 each or something.