How To Get an Automobile Dealer License Number

It is an offense against the state when you buy and sell cars without an automobile dealer license. The state regulates this and if you still do the business without an automobile license, you will suffer the limit imposed on dealers as to how many cars can be sold per year and not participate in any dealer auctions. With this strict limit, the unlicensed dealer cannot make money in the car business.  Licensed dealers on the other hand make plenty of easy money, work only about 15 hours per week and can sleep long hours every day.

Many unlicensed dealers drive around town finding a deal while the licensed dealers stay at the dealer auctions and buy cars at wholesale prices and sometimes even below the wholesale prices.  There are steps to follow in securing an automobile license number for dealers. These are the following:

  1. Contact your local Department of Motor Vehicle (DMV). Every state has definite obligations for a tag license and for becoming a car dealer.
  2. Take and pass the test given by the DMV as a requirement from a State for all types of transfer licenses.
  3. Set up a properly zoned location with a tax license (retail and/or commercial zone) required by your business.
  4. Get the location approved by the DMV inspector.
  5. Sell cars once your application has been approved.

A car dealer license is important because it gives an applicant the benefit of a privileged car dealer who can participate in auctions and wholesales where only legitimate dealers can go. Dealership on mega-used cars is accorded to a licensed car dealer including participation in auctions. Other benefits provided by the car dealers’ transfer license are as follows:

  • The new car dealer can participate in “close bids” as a benefit of a car dealer’s license holder.
  • The state will not anymore limit the number of cars sold annually by the new car dealer.
  • You'll become a simple businessman, entitling you to company credit cards, small-business loans and many other benefits.
  • No need to waste time "wheeling and dealing" and using ads to get clients.
  • Tax immunity on many things, i.e., receipts on gas, auto repair, dinner and even movies.
  • Become an auto broker!  Did you know you need a dealer license to become an auto broker? You'll be halfway there!
  • Get big discounts and tax-free procurements as licensed car dealer from factory car traders and stores dealing with auto parts.
  • Buy brand new cars for yourself, your friends and family members. You'll never get ripped off from a dealership again!

There are plenty of benefits that an automobile license holder enjoys. With a tag license, the prospective car dealer reaps the benefits but without it all these benefits are lost and thousands of dollars supposed to be earned every month are also lost. Getting an automobile license number is the key to all these benefits. 


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