Wholesale dealers have no permission to sell vehicles to any person, but they can sell only to other licensed dealers. This also gives wholesale dealers a plus point in some states, because they need to fulfill fewer requirements from other type of dealers. Most wholesale dealers still needs to complete few important requirements like submit auto dealer security bond before applying for dealer license, training course and some other requirements. US Dealer Licensing can help you to get your dealer license within 30 days.
Doing Business As Certificate
For wholesale dealer you have to register your business with state and get a bank account for your company. DBA certificate is the one of the standard requirement of state for wholesale license, this is required because you are a corporation and a limited partner and people who desire to work can’t register with same name as yours.
Approve Business Location
Before going another step closer to getting a dealer license, you have to choose a business location and approve this location by Division of motorist services regional office, this step is needed when you apply for license. Later you are asked for a verified copy of approved property or ownership proof when you submit application for license.
Covering security bond requirements is the essential step before applying for license, without completing this step, there is no meaning for submitting license application. Normally wholesale dealer requests to apply for a bond of $25,000.
Apply for License
Once you have applied your security bond, now this is right time for apply for a wholesale dealer license. Wholesale dealer license requirements can be different according to their state; some states allow one license for all purposes and others allow different licenses for different purposes. Here are steps for apply for wholesale license:
State Business Registration
This is required step before applying for license, to start any business in any state, you need to register your business on a government level or from government and this will make your business legal in specific state.
Complete Dealer License Application
Dealer license application is important step you need to complete. Through dealer license application you have to provide your personal and business information. May be you have to answer some questions which are mentioned in application form.
With your application, you have to provide security bond information, clear dealer license training or exam.
Submit Application and Pay Fees
In some state you have to pay application fees as well as license fees and some other states only required one fees for application and license. After submitting all information and fees, you have to wait for your license. Once your license issued, that will send to you.
Benefits of Getting Wholesale Dealer License
One of the major benefit of getting wholesale dealer license is you can sell unlimited number of vehicles per year, without dealer license according to every state rules you can’t sell more vehicles specified by your state in one year.
When you are getting into business of buy or sell vehicles, your aim is to earn great profit, for this you have to find great deals on automobiles. Once you get wholesale dealer license you can attend all only dealer auctions in your state or country. In auctions you can buy branded cars on cheap cost sometimes and then get some huge benefit by selling these cars.
Once you get wholesale dealer license, you will get four dealer plates. These plates allows you to drive purchased cars in the state, if by chance vehicle get damaged by any type of accident then this damaged covered under insurance policy.
Get a wholesale dealer license also benefits in starting your own business. Auctions are main source of get high profit, sometimes you get new cars from there in faction of cost and then selling these cars will benefit you with great profit.
License also can use for identity proof, this will benefits you with relaxation on tax. You also get some tax breaks for running own business in state and contributing for economy.
Getting license will benefits you personally also, if you want a new car for yourself, in that case you can get great discount because of your access to dealer only auctions.