learn the difference between having a broker license and a wholesale dealer license

To Be an Auto Broker or Wholesale Dealer?

What’s an Auto Broker?

learn the difference between a wholesale dealer license and a broker license

There are tons of terms swirling around out there when it comes to the auto industry—wholesale dealer licenses, retail auto dealers, and auto brokers, just to name a few!

It can be easy to mix these terms up, especially when you thought an auto broker was the same thing as a wholesale dealer…

So what’s the difference between these two, and more importantly, which one is right for you? 

Well, this is where US Dealer Licensing comes into play! 

With over 30 years of experience in the auto industry, US Dealer Licensing will break down the differences to help you choose which one is best for you!

learn about the job tasks associated with becoming an auto broker

We’re glad you asked! 

An auto broker is essentially a car buying expert. When people don’t have the time or the knowhow to shop around for a vehicle, they enlist the help of a broker to do the heavy lifting for them. 

To get started, a broker will typically set up a meeting with their client and ask questions to get a better feel of the vehicle they’re after. Common questions a broker will ask their clients include:
1. Preference on car make and model
2. Desired car color
3. Price range
4. Preference on vehicle mileage
5. Preferred vehicle year

Once all this information is collected, they use their connections and expertise to find the best vehicles to present to their clients, helping them narrow down choices.
 
Auto brokers can make anywhere from $200 – $1,000 per client, proving this job lucrative for those who hold an auto broker endorsement…

What’s a Wholesale Dealer? 

A wholesale dealer license allows an individual to sell vehicles directly to auto dealerships. In addition to dealing one on one with other dealers, they can also buy and sell at private dealer auctions. 

This means they have the power to buy vehicles in bulk, fix ’em up, and then flip them to make a profit! 

Now here comes the burning question you’ve been waiting for—“Can I use this license to sell cars to the public?” Unfortunately, the answer is no. 

Though a wholesale dealer lacks this ability, you can still import and export vehicles across seas and attend private auctions.

Which One is Right for You?

contact us dealer licensing for help with getting a wholesale dealer license

That all depends! 

With an auto broker license, you have the ability to work with both retail auto shoppers and dealerships, which helps you form a wide range of relationships. You also get paid per client that you work with, meaning if you market yourself right, you can make some serious cash. 

With a wholesale dealer license, you can buy and sell directly with auto dealerships. You also have the luxury of attending auto auctions that the general public cannot, which means you can score great deals on vehicles. By moving vehicles in bulk, you have the opportunity to make large profits.

Getting Started with a Wholesale Dealer License

If you decide that a wholesale dealer license is right for you, you’re in luck. 

US Dealer Licensing specializes in helping people through all of the licensure paperwork, including securing a retail office and getting you the best prices on bonds and insurance. US Dealer also provides training and support so that clients feel confident throughout the whole process. 
To get started with your wholesale dealer license, contact us at (888) 344-5570 or visit our contact page for more information.

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