![]() ![]() Inspection of the vehicle identification number and the VIN plate to detect possible alteration or other fraud.Comparison of the vehicle identification number (VIN) with the number recorded on the ownership records.No matter if you're just starting out in the dealership business or you're an auto business pro–and whether you have a lot or not – Surety Bonds Direct can help you find the right dealer bond for you. We work directly with leading national surety bond companies to give our customers the most competitive rates and the best customer service so that your business can grow, flourish and expand. Plus, we offer flexible payment plans to make bonds more affordable for our customers. You'll pay a percentage of this upfront to the surety and then file your certification with your dealer application.Īlthough dealer surety bonds usually require credit checks, keep in mind that Surety Bonds Direct can help you even if your credit isn't perfect. ![]() State law will determine how much your bond needs to cover, but amounts can range anywhere from $10,000 to $100,000. That can include everything from misrepresenting a vehicle's condition to not paying sales taxes. Check out our page on What Is a Surety Bond? to find out the basics.īasically, a surety bond serves as a guarantee that your business won't engage in unethical conduct. If you're not sure exactly what a surety bond is, don't worry-many people aren't quite sure at first. Whether you have a lot or not, getting a surety bond is essential for becoming a licensed dealer. This should be where your records are kept. You'll also still need to list a place of business on your paperwork. There may be a limit on how or where you can display them. If you're planning on displaying vehicles for sale at your home, check local laws first. There are a few special considerations to know for dealerships without lots. Sending in your application packet with the appropriate fees and notarizations (as required by your state and local laws).Filling out your application packet, which typically includes:.Contacting your local Department of Motor Vehicles or Department of Licensing to get all the forms and information you'll need.The steps you'll need to follow will include: The auto dealer license application process can be fairly long and involved, but with the right know-how, thousands do it every year. You can go through a process that's fairly similar to the licensing process for a dealer with a lot. Ultimately, the good news is that you don't have to have any kind of lot space to get a dealer's license. Dealing cars without a license is illegal, and if you get caught, it can make it harder to get a license in the future. The bottom line is this: If you want to be an auto dealer, you need an auto dealer's license. However, these practices can be legally dubious, and you're better off avoiding them. Sometimes, entrepreneurs looking to dip a toe into the water will "rent" a dealer's license by paying a membership fee to a local dealership that provides access to dealer auctions and other benefits of being a licensed dealer. You also won't get access to dealer auctions without a license, which is where most used car dealers find their best stock. However, most states allow a private citizen to sell only two or three vehicles per year without a license. If you're just selling your own personal vehicle, a dealer's license isn't necessary. Do You Need a Dealer's License?įirst, maybe you're wondering if you really need a dealer's license to sell a few cars on the side. DISMANTLER LICENSE TEXAS HOW TOIn this article, we'll talk about how to get a car dealer's license without a lot, and learn a little bit about motor vehicle dealer surety bonds along the way. For one thing, like any other dealer, you'll be required to carry a motor vehicle dealer bond to protect your customers-and that's where Surety Bonds Direct comes in. So, if you're asking whether you can get a dealer's license without having your own lot, the answer is yes, you can! However, there are a few key considerations you should be aware of first. It can be a good way to start out small without making a big-time investment in a lot or a large inventory. If you're just starting out in the auto trading business, this might be an option you're interested in. For starters, there are numerous independent dealers who run smaller lots, but there are also many legitimate, licensed sellers who don't have lots at all. There are many aspects to the auto business beyond the large, fancy lots. Do I Need a Car Lot to Get a Dealer's License? ![]()
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