Acquire your used car dealers license and pay low overhead
Thank you purchasing the program on how to acquire a used car dealers license, and pay low overhead. The information your about to receive is very valuable, and worth every penny you paid for it. Today is your lucky day. You're not going to have to learn the hard way like I had to.
I'm about to squash the myth that you need to get a car lot in order to get a used car dealers license. Lot's of people never get their license because there afraid there going to have pay a ton of overhead, and that it's too risky.
I'm going to tell you how I was able to get my license in California. The DMV in each state has different regulations. I'm not sure how different or similar each states rules apply to acquiring a used car dealers license. Some states can make it easier some harder. If you can't apply this information where you live, I'll reimburse you your money.
In California if you get a retail dealers license you can both retail, and wholesale cars. Retailing is selling to the public, and wholesaling is selling to other dealers. Getting a wholesale license is much easier because you don't have to have a display area. Wholesalers can only sell to other dealers. In order to get a retail license you have to have a display area. Some people will get their wholesale license, and sell to the public anyway. If they get caught they'll get arrested.
What most people don't know
In California, the minimum size your display area can be is two parking spaces. You can get your license by having an office in a small building and having a designated two parking spaces for your display area. Thats it! you don't have to have a large lot, and pay $3500 to $5000 a month in rent. All you need is your office, and the two parking spaces! Your office, and display area will have to meet certain requirements though.
Where to keep your vehicles
You can have two of your cars parked in your display area, and the rest of them parked in a storage facility or on the street. You can park your cars on the street with current registration. If you have more than two cars with expired tags you'll have to rent some more parking. You'll be doing most of your advertising over the internet since you wont have a large display area on a major street.
With the dealers license you'll be able to sell the car at a higher retail price because you'll be able to offer financing. You'll have to establish a relationship with a finance company like Westlake Financial.
Meeting zoning requirements
You have to find an area where the city will allow auto sales. If you see a potential place to rent an office, and set up a display area, you'll have to go to the city and find out if they allow auto sales in that region. Part of your dealer application package is having the city sign A DMV form called "property use verification form." If the region you want to sell cars is zoned for auto sales, the city will sign the form for you.
Look on craigslist for offices for rent. Check out different places, and talk to the owner or property manager. Not only will you be renting an office but you'll also have to rent two parking spaces for your display area. The parking spaces shouldn't be anymore than $75 a piece. You'll also have to make sure it will be alright with the owner of the building to put up your sign. You have to have a sign on the building with your dealership name, and address.
You can't have two different businesses in the same office
Whatever office you get you can't share it with another business. Say you have a friend who wants to get his dealers license too. You can't have two different dealerships in the same office. It doesn't matter how many rooms are in the office. You can't go through one business to get to the other.
Facing Outside
When you step out of your office you have to be facing outside.
