I have been researching on Idaho’s DMV website on how to obtain a dealer’s license. It looks like I am going to have to come up with a $20,000 bond and a commercial location/land in order to even apply for a dealers license. It also states that if you are not going to sell more then 5 vehicles a year and they will be registered in your name, the you do not need a license. That is where I fit in, not needing a license, so can anyone tell me if there is a way to get a dealer’s license get into dealer auctions where I can get lower then book pricing so I can make profits off my sales? I am looking for any help and anyone who has been through the same situation I am currently in. Thanks!!
Originally posted 2009-04-02 07:21:22.
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If they let you do that, then everybody else would want to go to the auction to say they are buying cars to sell. When they are really buying for themselves at a lower cost. I dont see why it matters since the auction house still makes their money, but believe me..the dealers have are selfish and greedy, they have all the loopholes covered.
My ex husband and I started a car lot. You do have to have a dealers license to buy or sell at a private auction. You could maybe befriend someone that has a license so that you could get started. Just an idea.
I ran into a similar problem 10 years ago. Here’s how I got past the system. I took a job as a car salesman at very small car lot. Three months into the process I became a minor investor in the business. Voila! I now had a location it was no problem to get the bank to underwrite the bond because I was listed as part owner of the business. (colatteral) Within a year I had my license bought out my partner. I don’t know if it will work in your state but it worked for me.