If you’re thinking about breaking into the auto industry, getting a wholesale dealer license can be a smart move. But before you jump in, it’s essential to understand exactly what this license allows—and what it doesn’t.
Whether you’re planning to flip cars, access dealer-only auctions, or start a small car business from home, this guide will walk you through the key dos and don’ts of holding a wholesale dealer license in the US.
What You Can Do with a Wholesale Dealer License
1. Buy and Sell Vehicles at Dealer-Only Auctions
One of the most significant benefits of having a wholesale dealer license is access to exclusive dealer-only auctions. These auctions offer deeply discounted inventory—often from off-lease programs, trade-ins, or repossessions—so you can buy cars well below retail prices.
Learn more about how the wholesale dealer license process works here.
2. Sell Vehicles to Other Licensed Dealers
A wholesale dealer license allows you to sell vehicles to other licensed dealers, but not to the general public. This business model can be great if you specialize in sourcing in-demand inventory and supplying smaller retail dealers or export buyers.
3. Operate Without a Physical Lot
In many states, wholesale dealers are not required to have a traditional retail location, making it much easier—and more affordable—to get started. Some even run their businesses from home or use a shared office model like those provided by US Dealer Licensing.
4. Buy Vehicles from Private Sellers or Dealers
You can legally purchase vehicles from private sellers, retail dealerships, or auctions with your license. You’ll also gain access to tools like dealer plates, title services, and industry discounts.
Need help with title paperwork? Check out our title service support.
5. Export Vehicles Internationally
With a wholesale dealer license, you can also export vehicles outside the US if you follow proper customs and documentation protocols. This can be profitable for dealers who want to tap into global demand, particularly for American trucks, SUVs, and specialty vehicles.
6. Buy and Sell Salvage Vehicles (With Caution)
Yes, you can use a wholesale dealer license to buy and sell salvage vehicles—but knowing your state’s rules is important. Some jurisdictions may require a salvage endorsement or additional disclosure paperwork when dealing with branded titles.
If you plan to work with salvage cars, please check the state requirements or contact our team for guidance.
What You Can’t Do with a Wholesale Dealer License
1. Sell Cars Directly to the Public
This is the most common misconception. A wholesale dealer license does not allow you to sell vehicles directly to retail customers (i.e., everyday drivers). For that, you would need a retail dealer license.
Curious about the difference? Here’s a helpful guide on how auto dealer licenses work.
2. Offer On-Lot Retail Test Drives or Walk-In Sales
Since you aren’t selling to the public, your business doesn’t need a visible lot or signage. That means no drive-up customers, test drives, or vehicle displays intended to attract retail buyers.
3. Use Dealer Plates for Personal Driving
Dealer plates issued to wholesale dealers are strictly for business purposes, like transporting vehicles between auctions or dealer lots. Using them for personal errands or daily commuting is illegal and could result in license suspension or other penalties.
4. Skip Recordkeeping or State Compliance
Just because you’re not selling retail doesn’t mean you’re off the hook for paperwork. Wholesale dealers must maintain accurate records, adhere to titling requirements, and comply with state regulations.
Need help staying compliant? Visit our FAQs page or contact our support team for more information.
Is a Wholesale Dealer License Right for You?
A wholesale dealer license is a great first step in starting a car-flipping business, supplying other dealers, or tapping into dealer-only auctions. It’s easier and faster to obtain than most retail licenses, and it comes with fewer startup costs.
Want to know more about who we are? Learn about US Dealer Licensing here.
How to Get Started in 3 Easy Steps
At US Dealer Licensing, we streamlined the process to make it more straightforward. Here’s how it works:
Step 1: Apply Online
Complete a quick and easy online application so we can start your file. No commitment is required—it takes just a few minutes to get the ball rolling.
Step 2: Choose Your State
Select the best state for your license. We help you evaluate which location fits your needs and offers the most flexibility.
Step 3: Get Licensed
Our team handles the paperwork, office setup, and title service support, so you can focus on sourcing inventory and building your business.
Learn more on our Wholesale Dealer License Process page.
Final Thoughts
Understanding the limits and privileges of your license is crucial for staying both legally compliant and profitable. Whether you’re just starting out or looking to grow your operation, the wholesale license gives you flexibility, access, and professional legitimacy.
Ready to take the next step? Start your wholesale dealer license application now, and our team will guide you through every step of the process.