Common Dealer Licence Q & A’s
Wecome to an on-line resource on how to get your car dealer licence. Retail or wholesale, the info and resources on this site will give you the information you’ve been looking for.
Q. I only want to sell a few cars month. Do I need a dealer licence?
A. Yes. The licencing of auto dealers is to protect the consumer. Without it, there would be people selling cars on corners, from apartment buildings and homes. Buyers could easily get ripped off by con artists. People who sell without a licence are called “curbstoners”. Most ciites even have ordinances against parking cars with for-sale signs on public streets .
Q. I understand I will have to own a car lot to get my licence.
A. All states require a business location. A business location does not mean a car lot. As an example in Colorado, a wholesale dealer can have his business in his home. You have to investigate the requirements for your state and “think-out-of-the-box”. A business location for a retail car business could be in an industrial park rented for $300 a month or an old gas station. Location wouldn’t be important if you’re going to sell on eBay or Craigslist.
Q. You mean I have to have a dealer licence to sell on eBay or Craigslist?
A. Absolutely! The Internet is not a place. It is a form of advertising. It doesn’t matter how you advertise your cars, if you’re selling to the public, you must meet the requirements and be licenced by the state where you are doing business.
Q. You have mentioned requirements twice. Where do I find the requirements for my state for a licence?
A. At the bottom of this page in “resources” you will find a link to the dealer licence requirements for all fifty states.
Q. I have to have a license in my state? How about all those websites I see that are selling an Indiana dealer licence? Can’t I use it?
A. The Indiana businesses are not selling or getting you a license. They are providing a business location in Indiana. The licence is wholesale only and you have to do the application. And you can’t sell retail. The following is an example of an individual not understanding the laws. The result: a $25,000 fine. You can read the details here: https://myweb.in.gov/SOS/AAOnline/ShowFile.as…
Here are excerpts from the judgement that cost the Indiana licensee $25,000 and loss of licence. You can read in the court order that his licence was located at one the Indiana locations providing a location for dealer businesses. He was located in Illinois selling on Craiglist. This is illegal in all states to sell on eBay or Craigslist without a retail license in the state you’re doing business.
So why not get the licence in your state?
Q. How do I do that?
A. At the bottom of the page are resources to help you get a licence in your state.
Q. Can’t I get into auto auctions and buy and sell wholesale in my state with an Indiana licence? Some of them even offer a “retail” option. How about that as an option to retail?
A. Yes, wholesale licensees can buy and sell in most states to car dealers, auto auctions and other car wholesalers but not to the public in any state. As far as the retail option offered here is what is posted on one the “Indiana Licence”…..
“Retail is a service we maintain for our dealer clients only. They are wholesalers. We hold a retail license at our facility specifically and exclusively for this purpose. We do all the paper work and supply a temporary plate. The fee per transaction is $100. Unless we are provided with a “Bill of Lading” from a transporter stating the vehicle was picked up at our property and shipped to a location out of state, the buyer and vehicle to be sold, must come to our property and we collect Indiana Sales tax”.
As you can see, the car must be located in Indiana and transported to your location unless the buyer wants to go to Indiana to pick up the vehicle.
So again….why not get the licence in your state?
Resource Links:
Dealer Licence Information
Dealer Licence Requirements
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