Engaging in the car trading business is a rewarding feat in many facets anywhere on the planet. Car dealers access auctions and bid for cars at very competitive wholesale rates, which they in turn sell at quite handsome margins. Persons with an automotive dealer license can use such an opportunity to acquire personal cars of their own taste and preference. With such a leeway, they can also assist friends and their loved ones get wonderful bargains too. There are tax incentives that are normally offered in different regions to reward investors in this industry for creating wealth and reducing unemployment.
The steps followed in obtaining an automotive trader license differ from State to State with only a few similarities in some instances. A distinction between the States of Florida and California would serve to shed more light on this aspect.
Starting with Florida, the dealership licenses applied for normally fall into four categories. These are Independent, Auctions, Franchise and wholesale licenses.In this State, anybody with a showroom exhibiting three or more vehicles for sale is considered a dealer. Such a person or company is therefore expected to obtain a license for this activity from the DMV section as stipulated under section 320.27
The requirements under this section are quite lengthy. They actually involve completing an application form accompanied with other vital documentation. These are business premise licenses, fees receipt for all the main locations, a surety bond, the yard lease copy and Garage liability insurance. Other requisite papers include an identification number from the Federal employer, fingerprints and a dealer training seminar certificate.
If a dealer is found to be non-compliant with the above rules, he risked being charged for a second degree misdemeanor under the Florida laws. Depending on the gravity of the crime, civil law can also be brought to bear. The effect of this would be stiffer penalties and harsher jail terms.
On the other hand, the approach is a little bit different when obtaining a dealership license in California. First, it is required that one pursues a dealership course with the scope being determined by the volume of trade anticipated. A test would be administered upon completion of the training. Proof of the same will be required by the DMV in addition to that of the business location. An application fee will be sought from all applicants by the DMV office.
Interestingly, it is easier to operate as a wholesale trader in California than a retail one. This is owing to the fact that the restrictions for a retail dealer are more constraining. Stringent compliance with insurance and bonds is a must. In addition, only the retail type of dealership is permitted to engage the public.Upon passing, the successful applicant is also required to produce photos of his main area of operations.
Once prospective applicants for automotive dealer license pass their exams, they must produce photos of the main building, display area, the office, business and resale permits, inside signs and the DMV dealer book. Other requirements in the process include submitting of a zoning approval letter and a TSM8888 business license permit as well. As to any further information, feel free to visit the nearest DMV office.
The steps followed in obtaining an automotive trader license differ from State to State with only a few similarities in some instances. A distinction between the States of Florida and California would serve to shed more light on this aspect.
Starting with Florida, the dealership licenses applied for normally fall into four categories. These are Independent, Auctions, Franchise and wholesale licenses.In this State, anybody with a showroom exhibiting three or more vehicles for sale is considered a dealer. Such a person or company is therefore expected to obtain a license for this activity from the DMV section as stipulated under section 320.27
The requirements under this section are quite lengthy. They actually involve completing an application form accompanied with other vital documentation. These are business premise licenses, fees receipt for all the main locations, a surety bond, the yard lease copy and Garage liability insurance. Other requisite papers include an identification number from the Federal employer, fingerprints and a dealer training seminar certificate.
If a dealer is found to be non-compliant with the above rules, he risked being charged for a second degree misdemeanor under the Florida laws. Depending on the gravity of the crime, civil law can also be brought to bear. The effect of this would be stiffer penalties and harsher jail terms.
On the other hand, the approach is a little bit different when obtaining a dealership license in California. First, it is required that one pursues a dealership course with the scope being determined by the volume of trade anticipated. A test would be administered upon completion of the training. Proof of the same will be required by the DMV in addition to that of the business location. An application fee will be sought from all applicants by the DMV office.
Interestingly, it is easier to operate as a wholesale trader in California than a retail one. This is owing to the fact that the restrictions for a retail dealer are more constraining. Stringent compliance with insurance and bonds is a must. In addition, only the retail type of dealership is permitted to engage the public.Upon passing, the successful applicant is also required to produce photos of his main area of operations.
Once prospective applicants for automotive dealer license pass their exams, they must produce photos of the main building, display area, the office, business and resale permits, inside signs and the DMV dealer book. Other requirements in the process include submitting of a zoning approval letter and a TSM8888 business license permit as well. As to any further information, feel free to visit the nearest DMV office.
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