How to Get a Dealership License and Open a Profitable Used Car Business

If you are looking for help and information on how to get your dealership license, then the following Q&A’s and resources at the bottom of the page are a great place to start.

Q. I’m interesting in buying and selling cars. If I only want to do a few a month, do I need to have a dealership license? I want to sell on Craigslist or eBay.

A. Yes. The laws in states are to protect the consumer from unscrupulous sellers both dealers and non-dealers. Craigslist and eBay are only advertising methods. It doesn’t matter how cars are advertised, if you’re selling for profit then a license is needed,

Q. Wow. I’m not interested in having a car lot and all the costs and problems.

A. You can get a dealer license without a lot. A wholesale license doesn’t need a lot. You have to fulfill the state requirements for a retail license. It will require a business location. Nothing says it has to look like a traditional lot. There are issues, as you research the licensing process you’ll find roadblocks. The resources below give options that will help you get a license with minimum costs.

Q. What are some of the requirements?

A. It’s not possible to give them in a short answer. The “resource” link at the bottom of the page will give a complete listing ot the fifty state requirements.

Q. It seems as if it’s something I may no want to pursue.

A. That’s not necessarily true. You need to know everything there is about the car business and all the options that are available in getting the license. The help can be found in the “resources” at the end of this page.

Q. How about the websites offering an Indiana dealer license for a monthly fee? Or can I rent an auto dealer license?

A. First no you can’t rent a dealer license. You can’t rent a plumber’s license or a contractor’s license or someone’s driver’s license.

Second, the Indiana businesses do not “get you a license”. They provide a place for you to rent. You have do the application and pay all the state’s fees, bond fees and insurance. And the license is wholesale only. You cannot sell retail.

The following are excerpts from an Illinos person’s judgement and fine. He purchased one of these dealer license packages and suffered the consequences of not understandng licensing laws and regulations; a $25,000 fine!

Here you can read the judgement and details. https://myweb.in.gov/SOS/AAOnline/ShowFile.as…

Below I have excerpted the main points.