How to become an automotive dealer

[DamnedButDetermined]

I would love to be able to go to the auto auctions and buy cars, fix them up and then resell them to the public. I don't know were to start learning about this so i figured I would ask all of you. Is there a certain test you must take, or just file the proper paper work?

I live in jacksonville florida if that makes any difference.

thanks for your time,
DbD

[PARAD0X]

not sure about FLA, but i know in GA its 2000 a year to have a dealers license

[RoNiN240sx]

yah not exactly sure on how to get one started either, my friend works for one however. said the owner started out with 5 cars in a lot, he now owns 3 of em and pulls in 9 mil a year after taxes! crazy.

[matlock]

One of my friends wanted to do the same thing by being able to get the cars at auctions etc. I looked into it a bit and some people that I talked to said that you need a showroom for at least 1 car, if you plan on servicing you need a lift, and just a bunch of other stuff and I don't know if they were just B.S.'n me or what. I would probably contact your local city officials about it or look online regarding your state, because it sounds like it differs from state to state.

[DamnedButDetermined]

In Florida, motor vehicle dealers are licensed and regulated by the Division of Motor Vehicles under Section 320.27 Florida Statutes.

The Law

Florida law states that any person, firm partnership, or corporation that buys, sells, offers for sale, displays for sale or deals in three or more motor vehicles in any 12-month period is presumed to be a motor vehicle dealer and must have an appropriate license issued by the State.

License Types

There are four classes of licenses issued to motor vehicle dealers. They are:

Independent Dealer--for a person dealing in used motor vehicles only. This license permits the licensee to transact business at retail or wholesale.

Franchise Dealer--allows the licensee to sell new motor vehicles under an agreement with a manufacturer. This license also permits the licensee to sell used motor vehicles.

Wholesale Dealer--licensees may only buy from, sell to, and deal at wholesale with other licensed dealers.

Auctions--are licensed to sell, on behalf of licensed dealers, through the bid process. Auctions may not sell retail.

Application

Before going into the business of selling motor vehicles, a person must submit a completed application, with required documentation and fees. License applications may be obtained from any Division of Motor Vehicles' regional office.

General DMV Requirements

Approval of business location by a DMV representative.
Completed application form.
Fee of $300 for each main location.
$25,000 surety bond or letter of credit.
Garage liability insurance.
Copy of lease for location or proof of ownership.
Dealer training seminar certificate.
Registration of fictitious trade name.
Copy of corporate papers.
Sales tax number.
Federal employer identification number.
Fingerprints and applicable fees. ($39 per person).
Note: Franchise dealers must meet certain additional requirements.
Failure To Obtain A License

Any person violating these licensing requirements is guilty of a second-degree misdemeanor, punishable by up to six months in jail and/or fine of $500. Such person will also be liable under civil law for violation of Florida’s Deceptive and Unfair Trade Practices Act, subject to fines of up to $5000 per violation, and may face a permanent injunction issued by a circuit court.

More Information

If you have questions about application procedures and licensing requirements, contact the DMV regional office.



Wow that is a lot of requirements to get a license. What do you think about the "$25,000 surety bond or letter of credit." rule. Does that mean you have to have $25K in the bank or that much of a credit limit on a credit card?

DbD