How To Get A Dealer License For Car Auctions Without A Lot (Full Guide For Auction Access)

I've been privately helping people get a retail dealer's license for car auctions and they've already seen some amazing results. Like JR who said thank you so much for getting the auction access, I don't know where I'd be without it. Then I realized I never actually made a video covering that exact topic. So today's a day you'll learn so you can get into dealer car auctions, have no limit of cars you can sell per year, and the best thing is one of the options you don't even need a lot or a physical location to do it. Let's get right into it. So there's really three different ways that you can go about getting your dealer's license. So let's cover option one first which is just getting a retail dealer's license. Now the exact steps will vary per state so make sure you check with your exact state. But we're going to go through some of generally the minimum requirements that you need to hit just to get this type of license. First of all you're going to need to file a decent amount of different paperwork just to get everything going. You're going to be sending it into the DMV and generally speaking it's going to cost around $500 to $1,000 just to get the ball running. I'm going to leave an extra link in the description so you can see some of the paperwork that you're going to need if you want to get started. And I will say sometimes it could be a pretty long waiting period before the paperwork actually comes back and everything gets confirmed. Next step after that would be getting your commercial's insurance to actually cover your vehicles because of course you can't just have customers pulling up, driving around the cars with no insurance. Then after that you need a bond to actually cover your dealership as well. And how this works is there's going to be a bond that you're going to get established for your dealership. It could be potentially $50,000 for the bond itself and above that based on what your dealership needs. And then you're just going to pay a percentage of that based on what your credit and your background is. So you could be paying anywhere from 1% to around 15% of whatever that bond amount is that you want to get for the dealership. Then for this exact option you're also going to need a lot as well. Of course yes we're going to cover the other option where you don't need a lot as well a little bit later in the video. But for this one the lot needs to be able to hold at least a couple of vehicles for most states. And it also has to have an office that can have things like air conditioning, have seating, and some type of safe to be able to hold paperwork. With this type of license you have the ability to be able to sell directly to other dealers or you can also sell to the public. But realistically speaking the main overhead that you're going to have even on a month to month and yearly basis is going to be the rent that you're going to be paying for the lot which could range anywhere from like $1,000 and above. And of course the insurance that you're going to be paying as well. And I will say I don't want to discourage anybody that wants to actually go that full route of opening up their own dealership and getting their own lot and all that stuff. Of course there's a lot of money to be made in this business regardless of what the economy is honestly because people always need cars. But as you can see you will need a decent amount of money just to get things rolling. Just because all the things that I mentioned just to start the dealership is everything that you need to get in order. But before you even think about actually getting cars for inventory to sell to actually make money in the dealership as well. But that's just one option. Now let's get to option two. And option two would be getting a wholesale dealers license. Most of the things from wholesale to retail are around the same so I'm not going to repeat every single thing. You'll still be doing the paperwork. You'll still have to get insurance for the cars. You'll still need a bond. I will say the insurance will be a little bit cheaper generally just because you don't have to have insurance covering customers potentially driving the cars. But the big thing with this type of license is two different things. First of all in a lot of states there's actually no lot that's required. So in some states you can literally just be working out of your home. You might not even need a legit office space to get this going. So of course that can cut down a lot for what your monthly expenses might be. But at the same time you can only sell to other dealers. And in the next step we're going to cover how you can actually sell to the public and to other dealers without having a lot as well. But just to quickly sum up this step for getting a wholesale license it definitely is a decent option. And I've known people that are making some crazy money doing this as well. And it's also nice having a business where you're not having to deal with the public and thinking about oh well do I have to set up a warranty with the car? Are there going to be customers coming back talking about complaints about the car? Do I sell them? All that stuff. And of course realistically you're not going to have nearly as many monthly expenses to keep up since you don't have things like your own lot as overhead as well. But on the flip side of that the downside is that it could take a little while before you actually get that ball running and start making some good profit per month. Just because realistically speaking in today's age you're usually not going to be able to do too much of just buying directly from one auction and selling directly to another auction. You can make a little bit of profit doing that but you're not going to make too much. The big portion of the dealership is actually making connections with other dealerships as well so that you could potentially buy trade-ins from them and then sell it to another dealership and you're not worrying about how much buyer fees will be and seller fees which is going to eat up a pretty decent portion of what your profit will be. So this is a decent option if you're trying to start up and you don't have too much money to start up with things. But you do have to really be ready to just play that long game and the next option is signing up as a dealer rep which basically means finding another dealership that's already established themselves as a retail dealership to sell to the public and to other dealers and signing up under them as a co-buyer. And this is something that's actually been happening for a good while already that you might not even know was really an option but we're going to go through a couple of the specifics that you get with things like this as well. First of all you generally can sell as many cars as you want per year just because you are established under the dealership and when you're buying and selling a car you're not even putting your name down as a registered owner of the car. So you don't have to take the time to register it and put it into your name and wait for the title to come before you sell it to someone else. You can literally just get one car put it under the dealership's name and sell it to someone else right after regardless if it's to another dealership or to the public. You also have the same access to those same dealer auctions that other retail and wholesaler dealers are going to. There's not much of any paperwork that's involved so as long as you get a connection to do it with someone you can literally get started within a couple days or the same week. With this option you don't need any type of location to do it so even if you don't own a home you could literally be renting a house or renting an apartment it doesn't really matter you can still get your license this way and how you usually find someone to allow you to be a dealer rep under them is either just asking other people let's say if you have a family member or a friend that has a dealership themselves and then potentially just pay them a portion monthly or off of every car that you sell and set up a deal like that or the other option is you can literally just look on Facebook or Craigslist and you can search up auction access and you're generally going to find somebody that's doing the same thing around you as well and then usually how it works payment-wise is you're either going to be paying per month per year or just a one-shot deal where you pay one fee and you're in it for life and usually regardless of the option you're going to be paying some type of fee per car that you're going to be buying as well now I will say this one thing though you have to be careful to be honest there have been a decent amount of people that I've heard have joined other auction access programs and maybe they signed up under someone it was running for maybe a couple of months and then after that it ended up shutting down and then the person was nowhere to be found so if you are joining into this type of program you have to make sure that the person you're joining has had a lot of people joining up under them in the past or has been up and running in their business for a decent while now not someone that just started potentially that year and you know nothing about their dealership so this is actually the option that I went with myself I'm under a dealership called F&B Auto Group that's based in New Jersey and no it doesn't matter what state you're in in the US you can do it from anywhere but I've been under this dealership for around four years now and I've helped sign up about 80 people at least so I can definitely vouch for the dealership that I'm under if you do want access to that type of thing then I will leave a link in the description below I have a full training covering that exact topic and going a lot more in depth about exactly what the whole auction access program covers and it was also a recording of a live call that I did where people were on the call with me asking different questions so that you can see what their questions were what my answers were to them where I might potentially answer a question that you might have as well and if you already have your dealers license and you're wondering how you can handle the paperwork before you can make your sales I did already make a video covering that exact thing you can click here to watch it subscribe for more content about flipping cars and I'll see you in the next one peace