What is an Auto Dealer License ? A dealer’s license is the power or License granted by an authorizing agency (DMV) that gives you the “privilege” (or license) to buy and sell cars (automobiles and heavy equipment) for profit within this country.

by Gerard Fairley

This license will be required if a person conducts the buying, selling, brokering, leasing, negotiating a lease, or dealing in 2 or more vehicles in any 12-month period.  The Federal law states that if you are in the business of buying, selling, brokering or otherwise dealing in vehicles, you need a dealer license. Every state has of course adopted some aspect of this requirement.  In the law, “vehicle” generally : any vehicle required to be titled, motor vehicles, trailer coaches, and trailers weighing over 2500 lbs

There are several different types or classes of Auto Dealer Licenses.  We are basically concerned with “Class B”.

Class A (New Vehicle Dealer) – A licensed new vehicle dealer buys and sells new vehicles under a franchise agreement or contract with the manufacturer of the new vehicle.

Class B (Used Vehicle Dealer) – A licensed used vehicle dealer buys and sells used vehicles

Class C (Used Vehicle Parts Dealer) – A licensed used vehicle parts dealer buys or otherwise acquires late model major component parts for resale, either at wholesale or at retail. The dealer may also acquire whole vehicles to dismantle for the resale of parts, selling the remainder as scrap.

Class D (Broker) – A licensed broker is a dealer who, for compensation, brings a buyer and seller together, negotiates the terms of a transaction, or displays a vehicle offered for sale. In the broker’s role regarding the sale, purchase, lease or exchange of vehicles or salvageable parts, the broker does not have title or other legal interest in the vehicle or salvageable part. A person who conducts a vehicle auction is a type of broker and requires a Class D license

You are only going to get an actual paper license certificate if you are dealing with DMV directly (and can provide your building, building signage, car and land lot, Surety Bond, Business Corporation, etc.)

So, you…in effect get an Auto Dealer License with our program as a “Sponsored Dealer”…where you get the full DMV certification without having to go to DMV directly (because you are dealing with one of our affiliated Dealers). And secondly, your Auto Dealer License with us gives you access to a wholesale source for your cars…either the Adesa Auto Network or Manheim Auto Network.  These two networks run the Dealer Only Auctions that will be the source of your vehicles. Forget about buying clunkers from Craigslist, the Public or Government Auctions. Adesa and Manheim run private ‘Dealer Only” auto auctions where the cars are vetted and are in much better condition for the money. You can even bid and buy online.

What we provide in our program is the ability to “lease”…if you will… the Class B Vehicle Dealer License of a DMV certified Dealer. The object of the game is accountability and supervision. So if you are on the license of a local DMV certified Dealer..and then you have the same right and privileges extended to you…more specifically..the privilege to buy and sell cars for profit. You can collect state taxes for and from your customers; if you are enrolled in our Dealer Plate Program..then you get the use of that as well.