When we think of high paying jobs in the United States, many standard thoughts come to mind. Our minds wander from doctor to lawyer to professor, and we often fail to consider smaller, niche markets as moneymakers—niche markets like wholesale auto dealers.
In the world of auto buying and selling, individuals who possess a wholesale dealer license have the opportunity to make a fortune by buying cheap cars from auctions, which they can then sell to dealerships with fresh fixes and upgrades.
For car enthusiasts, the chance to make a high income by flipping cars seems like a no-brainer, but the million-dollar question still remains—do you get a wholesale dealer license or a retail auto license?
What’s the Difference Between Licenses?
When applying for an auto dealer license, the two main categories to choose from are a wholesale dealer license or a retail dealer’s license. Though they appear similar, the licenses hold different stipulations on where you can buy and sell automobiles, who you can sell automobiles to, and what kinds of requirements you need to receive these licenses.
Let US Dealer Licensing, a company with over thirty years of experience in the wholesale auto dealer industry, explain the license differences, so that you can choose the best license for you!
Retail Auto Dealer License
For most states, the maximum amount of cars you can sell to the public without a retail dealer license is five.
With a retail auto dealer license, you have the power to sell an unlimited amount of vehicles directly to the public and to dealerships. You also have access to dealer only vehicle auctions, which means that you can buy cheap cars to flip for a higher price, as well as selling your vehicles to mass buyers.
How Can I Get a Retail Dealer License?
The requirements for a retail dealer license differ among states, but some of the common stipulations include:
- A business location with the appropriate zoning approvals
- A surety bond or other level of credit to ensure financial responsibility
- A seller’s permit to collect sales tax
- You must be 18 years of age
- You must have no prior convictions related to the sale of a motor vehicle
These are just a few of the many requirements needed. To begin the retail dealer process, you can either enlist the help of a private firm to complete the process or you can visit your state’s department of transportation to fill out the necessary forms.
Wholesale Dealer License
With a wholesale dealer license, instead of selling vehicles to the general public, you sell and buy vehicles with car dealerships and auctions. You also have the freedom to import and export vehicles to and from international connections, to expand your vehicle’s repertoire.
How Do I Get a Wholesale Dealer License?
Just like a retail license, the requirements differ from state to state, yet some of the common stipulations include:
- An office with a legal address
- Proof of insurance
- An auto dealer surety bond
- A state business registration
- Completion of a background check
Receiving a wholesale dealer license tends to take longer than receiving a retail auto license due to paperwork checks and additional requirements.
Though the process can take longer, a wholesale dealer license can help you make important connections with similar traders and car dealerships—allowing you to grow your small business and make a profit while doing so.
If you have decided that a wholesale dealer license is right for you, don’t let the complex application process stop you from reaching your goals—let US Dealer Licensing help!
US Dealer Licensing Makes It Easy for You
From assistance with filling out paperwork to renting you an office to providing ongoing support, US Dealer Licensing is equipped to get you your wholesale dealer license in thirty days—in any state you choose!
For more information, call 1 (888) 344-5570 to speak with a representative!