5 helpful tips for getting your DMV wholesale car dealer license
- Sign up for our 6 hour Car Dealer Pre-Licensing Class. Follow the steps that you are taught, and then get approved by the California DMV as a wholesale dealer.
- Utilize the Web. Did you know that most wholesale dealers search the internet prior to purchasing a vehicle? A good wholesaler will recognize a low priced car at auction buy it and resell it a week later at the same auction.
- Keep in mind that delivery of the vehicle to the buyer must occur at the sellers licensed location. Some wholesalers will buy seasoned stock ( vehicles which are front line ready on a retailers lot but approaching 60 days in inventory ) and swap them out for vehicles freshly obtained. This allows the used car sales manager to restart the clock on that seasoned stock. These deals are often done book for book, the wholesaler ends up with added value. In a front line ready car the wholesaler can sell to another dealer, but it will often take a series of these book for book trades before you can actually see profits. Many small used car lots do not have the time to go to auction. A good wholesaler can stock these smaller lots and make a small profit on each car.
- Don?t ever consign a vehicle to another dealer. The wholesale license is a good starting place for the beginner; lesser bond, easier zoning and access to the market. Dealer plates and insurance are included in the wholesale package but as a wholesaler one can only buy and sell within the industry. That means as a wholesaler you can sell only to other dealers, there is no buying off the street. If and when a wholesaler has a vehicle to sell to the public he/she may draft that sale through a licensed retailer, this is call this a drafted sale.
- Remember the drafted sale creates liability for the retailer. Typical draft fee is $ 500. We advise the following: no loss selling ( wholesaler must sell higher than acquisition cost ), smog safety and verification provided by wholesaler, wholesaler as contact person on the buyers guide, statement from wholesaler assuming all liability if customer is not happy. Then the retailer collects and pays all taxes and fees, and sends the documents to DMV for processing.
Tips
- Wholesale Dealers cannot sell to the Public (only to other Car Dealers).
- Wholesale Car Dealers have a lower bond requirement and spend less on insurance.
- When selling to the public you must use a Drafted Sale.
- Wholesale dealers provide a much needed asset to the retail car market. Wholesalers provide cars to retail dealers and often facilitate trades among dealers. A good car buyer will make a little on each car (perhaps $ 300), but can only sell up to 24 cars in one year.
Related wikiHows
Sources and Citations
Tags: 800-901-5950, AUTOGODFATHER, BIG CAR DEALER SCHOOL, CAR DEALER SCHOOL INFO, DMV CAR DEALER CLASSES, DMV CERTIFIED CAR DEALER EDUCATION, GOTPLATES, RED FLAG CERTIFICATE
Source: http://howtobeacardealer.com/?p=2632
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