Why Renting a Wholesale Dealer License is Illegal

find out why renting a wholesale dealer license can land you in major trouble
you can face severe consequences for renting a wholesale dealer license

If you’re in the market to buy a wholesale dealer license, you might be tempted to rent one from someone else who already has one, whether it’s from a friend or from an online resource like Craigslist. After all, why bother spending time and money waiting to get your own wholesale dealer license when you can just pay someone else to deal with the licensing part? 

The problem with this approach is that renting wholesale dealer licenses is illegal in many states and can cause you major trouble if you get caught.

Take it from US Dealer Licensing. With over 30 years of experience in the automotive industry, we have seen some crazy things when it comes to renting wholesale dealer licenses. Let us say one thing—don’t let it be you!

What Does My State Regulate?

To start, it’s important to find out what exactly your state regulates when it comes to auto dealer licensing. While many people think they need to purchase or rent a wholesale dealer license in order to sell used cars, car dealerships in some states are actually licensed by different entities.

What are the Requirements by State?

always follow state requirements for wholesale dealer licenses

To be eligible for a wholesale dealer license, you’ll need to meet certain criteria based on your state’s specific regulations. Licenses are typically required for anyone who buys and resells cars in large quantities. 

In some states, you must have been in business for a set amount of time before applying; whereas in others, it depends on your credit history and personal assets. You can usually find information about these requirements online or by contacting your state’s Department of Motor Vehicles.

Is It Illegal To Rent Wholesale Dealer Licenses?

It’s safe to say that almost anyone would prefer to purchase rather than rent, but not everyone realizes that there are some situations where renting something may be illegal. 

This is certainly true when it comes to renting your license and starting your own business. State laws require you to purchase your own wholesale dealer license and do not allow you to rent or lease one. 

What are the Consequences of Renting a Wholesale Dealer License?

One of the most common violations of dealer licensing law involves individuals and businesses that purchase wholesale licenses and then rent them out to other companies. 

If you are caught renting or leasing your license, you will be subject to severe consequences that may include:

  • Monetary fines
  • License suspension
  • An audit of your business practices
  • Criminal prosecution

When in doubt about whether it’s legal for you to have a wholesale dealer license, seek professional advice from your state’s department of motor vehicles (DMV).

How Can US Dealer Licensing Help You?

us dealer licensing is here to help you get a wholesale dealer license the legal way

US Dealer Licensing is not only a dealer license brokerage service; it’s also an invaluable resource for finding out everything you need to know about state-specific licensing requirements.

With US Dealer Licensing, we can offer you information about wholesale dealer licenses in all 50 states; we’ve already done all of the research for you, so all you have to do is apply for your license! Call (888) 344-5570 to get started.

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