The 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 are:

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 license.

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 dealers license.

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.

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