There are immense benefits associated with becoming an automotive car dealer the world over. With a car dealer license, you will access auctions and buy cars at wholesale prices for resell at profit. Given the bulk nature of orders, you can also acquire personal cars of choice at greatly discounted rates and even assist close friends and family in doing so. Further, many countries offer great tax breaks as incentives to auto dealers for their efforts in spurring economic growth, generating wealth and creating employment.Thus said, acquiring an automotive dealer license is a step in the right direction.
Procedures applicable in acquiring an automotive trading license are quite divergent depending on which State you find yourself in. However, there are a few common prerequisites here and there that are to be expected. For purposes of clarity, the State of Florida and California shall be a study case in this article.
In Florida for example, there are normally four types of vehicle dealership license that can be issued. They are namely Independent, Franchise, Wholesale or Auctions. The law governing this industry in the jurisdiction presumes any entity displaying or offering for sale three motor vehicles and above to be a dealership. Accordingly, such an entity ought to be appropriately licensed by the State under the Division of Motor Vehicle (DMV) section 320.27.
The DMV requirements in Florida State are quite rigorous but feasible. They include amongst others a completion of an application form, an approval of business premises, a payment of fees for main localities of the dealership and obtaining of Garage liability insurance. Other obligatory documentation include a lease copy for the yard, a surety bond and a certificate for qualifying as a dealer training seminar. Finally a set of the applicant fingerprints and application fees are also needed.
In case of any breach, the State of Florida treats these violations as misdemeanors of a second degree with fines or jail terms not exceeding six months. A person can also be charged under civil law in exceptional circumstances with more harsh penalties and jail sentencing.This is to deter any compromise of industry standards.
On the other hand, the approach is a little bit different when obtaining a dealership license in California. First, it is required that one pursues a dealership course with the scope being determined by the volume of trade anticipated. A test would be administered upon completion of the training. Proof of the same will be required by the DMV in addition to that of the business location. An application fee will be sought from all applicants by the DMV office.
Retail dealerships in California are slapped with more restrictions than their wholesale counterparts. This is because of their liabilities which attract larger dealer bonds and more insurance. Only retail dealers are allowed to sell to the public whereas the wholesale dealers are confined to other dealers.
Up-close shots of the office and main display areas are also required in applying for an automotive dealer license. Snaps of the DMV dealer book and resale permits are also compulsory. Lastly, a zoning approval letter plus and a TSM8888 business license is necessary.Further information is available at the DMV office nearby.
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