3 Types of Auto Dealers Licenses
Most states have 3 types of auto dealers licenses available for anyone that
chooses to go into the used car business.
The 3 kinds of car dealers licenses typically available in most states
- Wholesale Car Dealers License
- Retail Car Dealers License
- Auto Broker License
So lets briefly discuss what they are and what you can do with these 3
types of auto dealers licenses…
:: Wholesale Auto Dealers License: With a wholesale car dealers license you are legally allowed to sell cars to car dealers
and wholesalers. You can also buy cars at car auctions. You are not allowed to sell cars to the public or to sell
private party consignments.
:: Retail Auto Dealers License: A retail auto dealer license will legally allow you to do everything you can do with a
wholesale dealers license, but it also allows you to sell cars to the public.
:: Auto Broker: As an
auto broker, or car broker (same thing), you are allowed to take consignments for customers. For a very small extra
fee some states will allow you to get an auto broker license as long as you already have your retail car dealers
You can do more with a retail car dealers license than you can with a wholesale
dealers license, but you could always start out with a wholesale car dealers license and upgrade later to a retail
Of course every state has different requirements for getting the 3 types of auto
dealers licenses, so you will need to check with your local DMV for specific requirements...or your type of used
car business might be a curbstoner.