How to Obtain a Business License as an Auto Dealer

Feb 11, 13 | Posted by: Autos by Text on Autos By Text News

car dealer licenseSo, you want to sell cars. You have the finesse – that special flair – that will make you a successful auto dealer, and you are ready to get started. That’s great! However, before you can begin selling cars to the average consumer, your state has special requirements you must meet. For instance, California requires its potential car dealers to complete a 6-hour pre-licensing class to sell cars.

Each state is different, and they do not all follow the same licensing protocol, so let’s talk about some of the things you can expect to encounter in your quest to become an auto dealer.

Initial Steps

Whether you are planning to sell used cars or new ones, each state requires you to fill out an application to sell vehicles to the ordinary consumer as an auto dealer. Not all states require you to take a training class beforehand, but if yours does, it is a great way to learn about the internal operations of the industry.

As a new car dealer applicant, you may have to submit to a background check and fingerprinting. Past criminal history may play a role in determining whether you are approved to sell cars as a dealer.

Some states may also want to know about your future business. You may have to show proof of:

  • Insurance
  • Your business certificate
  • A surety bond
  • Franchise agreements
  • Lease or rental agreements
  • Photos of your business location and workspace.

Where you apply to become an auto dealer varies from state to state. Contact your local DMV to find out where you need to go and what forms you need to get the process started.

Next Steps

Once the application is complete, you will need to pay the licensing fee. This fee varies, but it must accompany the application when it is submitted. Be sure all forms are filled out completely and you have included all the proper fees to avoid a delay in the application approval process. Application processing can take several weeks to even months, so while you are waiting, you should do as much research as you can to learn the nitty-gritty of the car dealership business.

After Your Application is Approved

Working as a car dealer is exciting and there are many perks that go along with it. To be successful, you need to sell as many cars as possible – quickly. The more you sell, the more you make.

With almost everyone carrying cell phones these days, as an auto dealer, you can take advantage of the online system at There, you will find valuable resources to help you sell your cars – whether it’s ten or a hundred – fast! All you do is sign up for the service, place the text code given to you on the car’s listing, and wait. Potential buyers text the number for more information and instantly receive the Year, Make, Model, Mileage, Price, Details of the car, and your contact information. What is even better is the system captures the potential buyer’s cell phone number so you can call them back quickly while the lead is still hot!

If you want to be one of the most successful auto dealers in your area, remember the system.


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