The Used Car Industry is very competitive. Before you begin the process of getting your used car dealer license, you should first think about why you want to get your dealer license. Then you need to determine which kind of dealer you want to be. This decision will also determine your capital requirements. You can be:

a retailer.
a rebuilder.
or a wholesaler.

The next thing to do is visit the website of the Secretary of State, in your particular state. The majority of car dealership legislation is handled at the state level, and each state acts independently. Some states will have virtually no requirements, while other will have extensive requirements. Typical requirements can include

A minimum garage liability policy
A minimum Surety Bond
Attendance at a mandatory class
Ongoing Education

As an independent car dealer, you will need to wear several different hats. It is important to properly judge your aptitude for being an independent dealer. Are you an experienced used car manager with 10 years of expereince? Are you someone who has bought and sold over 500 cars? What are your strengths? What are your weaknesses?

Remember, this is just the bare minimum needed to be a car dealer. We haven’t even begun discussing what is needed to become a successful car dealer. I would define successful as someone who is profitable and enjoys their profession.

Before beginning a journey in the used car industry, it is important that a person analyzes their strengths and weaknesses when becoming a car dealer. To be successful, you will need to be competent in several different areas. However, there are 4 major areas that it is essential that you understand and can perform well. These areas are:

Purchasing
Sales
Reconditioning
cash flow management

Any significant weakness in any of those 4 areas can cause disaster in your dealership. My advice to anyone wanting to get their own used car dealership license is to focus on learning as much as possible about how to be a successful car dealer and not just the minimum required to be properly licensed and insured. Learning the information contained in Used Cars 101 is a fantastic place to start.