The Benefits of a Florida Dealer License

In my mind, the first big benefit of having a Florida Dealer License is that you don’t have to be a resident of Florida. Florida allows out of state residents to hold their license.

buy and sell cars anywhere in the country with your own Florida dealer license

You can literally live in Alaska or California and still hold a valid license. As you may know, every state recognizes every other state’s license.
Indeed, there are many benefits to having an auto Dealer License. The most obvious benefit to having any auto dealer license issued from any state…is the ability to sell unlimited cars per month. Without a license, you are operating as a public figure, not a business. Typically states allow you as a private citizen to sell up to 5 cars per year (many only allow 3) for profit. If you are not operating as a business, then there are a lot of tax benefits that you are missing out on.

There are many people who call me every day complaining about insurance costs. I had a guy call me last week about $8,000 a year insurance premium for his surety bond! Crazy huh? Of course your actual premiums will vary based on your credit, but for many this can be a financial challenge. As a Florida domiciled auto business, you will get access to cheaper insurance costs for your business. This may be a big savings for some people…especially if you are living in New York City or other high insurance region. This is in my opinion, the next big reason to get your license in Florida.
Last but not least, is the speed of process. You can literally have your license in 21 days…assuming you have all of your things in order first (location, corporation papers, etc.). Many people are less concerned with opening a lot…and are more concerned with moving around the country as a licensed dealer without the imitation you would have if you were a dealer rep. So this is quick, not a 3-4 month drawn out process.

Everyone who wants a license is not going to open a car lot. There are others ways to make money in this business. Some business people make their money just by sponsoring people into the auctions (dealer reps)…and never actually buy or sell cars. Just as an example…you can make a nice income charging people $1,500 per year for auction access and $150 per month title re-assignment. Imagine if you have just 10 Dealer Reps buying 5-15 cars monthly.
• Cheaper Insurance Costs
• Qualify for Dealer Floor Plan (inventory acquisition)
• Offer Financing to your customers
• Tax Benefits
• State residency not required

When you are looking to buy and sell automobiles, one of your goals should be to make the largest profit possible and the easiest way to do that is to find good deals on cars. Because of that, one of the biggest benefits associated with getting an automobile dealer license is that you will have access to all of the dealer-only auctions across the country. These auctions frequently offer cars at a fraction of the cost so you can greatly increase your profit when you sell them.
As a business owner you will get some tax breaks and you will also have the opportunity to write off various business-related expenses to save even more money. Beside the cost of the vehicles themselves, you can write off most items associated with the acquisition and the sale of your vehicles…including gas, delivery, marketing, and any auto repair or cosmetic upgrade costs. Make tax-free purchases from other car dealers and part stores.

Another advantage to being a licensed business is once you get things get rolling you can offer financing on the entire inventory. This completely removes a big barrier from selling automobiles. Most people want to buy more high-end cars ($4K+), but do not have the cash in hand. As a Florida Licensed dealer you can get easy access to credit for your customers that you could not do as a dealer rep for another company. Every finance company will require a copy of your license and maybe even a credit guarantee if you business is still young. You can by pass some of this by getting a shelf corp (aged corporation) which typically have some kind of credit index already associated with it.

If you want more information on how to get your own Florida Dealer License, please contact me at my other website. http://floridadealerlicense.info/