Rent a Dealer License ~is this legal?

Posted on by December 7, 2017

Rent a Dealer License is this Legal?

Can I rent a dealer license? I get asked this question very often by newbies in the car business. Of course I give them same anser everytime, you can not rent a used car dealer license under any circumstances. I don’t care who tells you otherwise, and every state generally has this prominiently featured in their reading literature.

can you rent a dealer license

yeah or nay ?

But before you click away, let me tell you there are alternatives to getting your used car dealer license thru your local DMV. You can align yourself with an Auction Access Dealer and get access to the cars auctions and other dealership functions. But you cannot call this “rent a dealer license” relationship at all. With an auction access program you have power of attorney on behalf of the sponsoring dealership. You are in affect the sponsoring dealership in all of your transactions at the dealer auction or any time you use the dealership name or credentials to make a sale.


So can you rent a dealer license? No you cannot. It is illegal in every state. You do hear people talk about it (How to rent a dealer license) and ask about it in forums and comments on YouTube videos. Many states are spending more money in tracking advertisements on the internet and making follow up inquires. You don’t want to get caught up in that scenario. What also comes up is the question of renting dealer plates. This is illegal as well. if you are a dealer, you should not place these types of ads on the internet and neither should you answer these types of ads (they are being monitored by “xyz agencies”) if you are trying to get in the business.

->>Rent Dealer License $299 per Month<<-

There are only two ways to legally do business as a used car dealer in most states. The first one is get a dealer license of your own and buy and sell cars. The second way is to align yourself with a licensed dealer via contract and get on their master auction access account. This in affect gives you power of attorney to buy and sell as the dealership and not as the private individual. Some individuals frown upon this practice, but it is legal. The sponsoring dealer remains legally responsible for any sales transactions from any of his “dealer agents” or reps. The dealer rep purchases are tracked nationwide by an auction access number that tracks back to the sponsoring licensed dealership. This is how a person can be in Los Angeles and buy a car at the local Manheim auction, while his licensed (sponsoring ) dealership is located in Miami, Florida. What is actually happening is the Licensed dealer is buying the car thru its agent, the individual living in Los Angeles.

So, to make a long story short you cannot rent a used car dealer license, but you can still get into the business. Just don’t ask anybody to rent a dealer license and you should be ok. Ask them for Auction Access instead.
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Tennessee Used Car Dealer License Requirements

Posted on by October 16, 2019

According to the state of Tennessee, when an individual sells more than 5 vehicles during a calendar year, he is considered in business and must be licensed by the state as a dealer. Tennessee Used Car Dealer License Requirements are quite specific in that you need a space large enough to hold 15 cars for display plus 3 car parking spaces for your customer.

learn about Tennessee Used Car Dealer License Requirements

you need space to hold 18 cars

 

 

 

 

 

 

 

 

 

 

 

 

 

I always recommend that you acquire your facility first and try to get something already pre-approved so that you reduce your chances of any mishaps. Once you have secured your location, then you can complete your dealer application. An Area Field Investigator will conduct a site visit of your facility to be sure you are in compliance.

>>>>>>You can have my consulting firm do this all for you 😁

Breakdown of Tennessee Dealer License Requirements

Facility Requirements

You will need an approved building facility that is a stand-alone structure (physically separate from all other buildings). You will need to outfit your office with office furniture and a working business telephone. A cell or mobile phone is not acceptable as primary line.

Tennessee Used Car Dealer License Requirements are pretty straight forward but the signage varies slightly from city to city, so check on that. No matter where you open, be assured that you will have to meet the sign requirements of a minimum letter height (varies slightly per ordinance), permanently installed, and visible from the road. The sign should state the full name of the dealership, minimum 8 inches in height, along with its designation as a business entity – whether corporation, LLC, LP or else. Beyond having display space for your cars, you will need enough space for 3 parking spots dedicated to your customers (18 parking spots minimum). Besides the parking spaces, your facility has to be a minimum of 288 square feet total, as well as offering functioning restrooms for your customer. Tennessee Used Car Dealer License Requirements for facility keep a lot of people out of the game.

>>Get in to the wholesale Dealer Auctions right now Manheim/Adesa/CarMax, with Auction Access.<<


Next, you’ll need to send proof of the following requirements along with your application:

Surety Bond

Like all other states, Tennessee Used Car Dealer License Requirements include a Tennessee Auto Dealer Bond. As a motor vehicle dealer, an individual or business has a great burden of proving trustworthiness. The client (the state) needs to know that the dealer will provide fair prices and services, upstanding information, and ethical treatment of each of their customers. The Tennessee motor vehicle bond “enables” or enforces this (depending on your view point). A vehicle dealer bond is a type of surety bond that helps to show that the auto dealer can be trusted.

In Tennessee, without an auto dealer bond you cannot open a dealership and is the prerequisite for your Tennessee Used Car Dealer License Requirements checklist. This is because auto dealer bonds serve to guarantee that your business complies with state rules and statutes and that your salespeople conduct business in an honest manner.

If a car dealer violates state rules and regulations a claim can be filed against their Tennessee auto dealer bond. The surety company then steps in to compensate the claimant up to the full $50,000 amount of the bond, depending on the severity of the claim.  It costs much less to get your bond, though. Typically, only a small percentage of the total amount of the bond is paid, and depending on your credit it will be somewhere between 1%-3%, at standard market rates. 

 

Here are other Documents you will need:

  • Provide a certificate of liability insurance with a minimum of $300,000 per occurrence.
  • Business tax license
  • Photos of the sign, lots, facilities, working hours and days, as well as of the facility as a whole, preferably in digital format.
  • Sales tax identification number
  • Personal and/or financial check and disclosure
  • Financial statement prepared by a CPA
  • Facility Zoning compliance
  • Submit a service agreement with an operation repair garage if your facility does not have such a garage.
  • Surety bond or letter of credit (original)
  • If applicable, you must also send a copy of the:
  • Stockholders update
  • City tax license
  • Signed service agreement
  • Corporate charter
  • Warranty rate form
  • Provide a copy of your Sales & Use Tax Certificate.
  • Submit a salesperson application and Eligibility Verification Form for every salesperson

>>>>>>You can have my consulting firm do this all for you 😁

Below are the fees for each type of license. Each license is valid for two years, and renewal fees are the same as those for new licenses.

  • New vehicle dealer: $400, per line make
  • Used vehicle dealer: $400
  • Salesperson license: $35.
  • Change of employer endorsement: $35
  • Motor vehicle show permit: $200
  • RV dealer: $400
  • Manufacturer, distributor, factory branch, or distributor branch: $1,600
  • Factory representative of distributor representative: $400
  • Auto dismantler and recycler: $400
  • Automobile auction: $800
  • All duplicate licenses: $25

Checks and money orders should be made payable to the Tennessee Motor Vehicle Commission and should be sent along with your application to:

Department of Commerce and Insurance

500 James Robertson Pkwy.

Nashville, TN 37243

Fees paid in cash can only be made in person.

For more information, or to schedule an appointment with a Field Investigator, call the Tennessee Motor Vehicle Commission at (615) 741-2711 or write to them at:

Tennessee Motor Vehicle Commission

500 James Robertson Pkwy.

Nashville, TN 37243

Once you have submitted your application along with all of the additional documents and items described above, an inspection will be scheduled for your dealership. After the inspection is conducted, and if no problems are established, a final review of your application will be performed. If approved, your Tennessee dealer license will be issued and you will receive your license no later than 14 business days after the approval of your application.

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How to get New York State Dealers License -step-by-step-guide

Posted on by November 6, 2019

How to get New York State Used Car Dealers License -step-by-step-guide

How-to-get-New-York-State-Dealer-License

If you wish to legally flip cars for a profit in New York, then the NY Department of Motor Vehicles requires you to get a New York Autombile Car Dealer License.

The used car dealer license requirements for NYS (New York State) are the same as any other state in that they require you to have an approved location.

Step 1# Find a suitable Location (Facility)

>>>>>>You can have My consulting firm do this all for you 😁

Here is the number one step when looking at the used car dealer license requirements for NY (new york state).  Your approved location must be large enough to hold at least 3 vehicles.  Here are the specific facility (location requirements for getting your used car dealer license in NY).


This is what to expect at your on-site investigation:

Be ready! When the automotive facilities inspector (AFI) arrives to inspect your facility, they will be checking that you have the following items

  • Dealer starter kit (starter forms and documents you purchase this)
  • Permanently mounted signs visible from the street ( the AFI will deny your application if your signs are not clearly visible)
  • Proof of identification for everyone named on the application (driver license or other government issued photo ID)

In addition to the supplies listed above, the AFI will examine your location for these characteristics

  • A clear and permanent physical barrier from other businesses that may share your location (separating display areas, signs and offices)
  • A display (car) lot that holds at least 3 cars
  • A mailbox at the business address dedicated to your business only
  • A method of locking security items (locking cabinet, safe, etc.)
  • Heat, electricity, desk and chairs
  • A business phone (cell phone is acceptable)

If approved, the DMV will issue you a certificate of registration, MV-50s (Retail Certificates of Sale and will cost you $250) and a Dealer Plate letter (if applicable).

How do I get an official dealer sign?

DMV does not provide official dealer signs.  Used car dealer license requirements for NY (New York) have specific signage requirements and will cost you approximatley $200  depending on where you go. You may purchase these signs from various sign shops and automotive supply stores.

new-york-state-retail-motor-vehicle-dealer-sign

Your sign needs:

  • Red background and white lettering
  • To measure at least 3 feet wide by 2 feet tall
  • Display “REGISTERED (Facility Number) STATE OF NEW YORK MOTOR VEHICLE DEALER” in two inch block lettering.
  • To be permanently mounted and visible at all times from the nearest street or highway

>>>>So, in a nut shell, used car dealer license requirements for New York State mandate you  to complete an NY Dealer License Application,  get a Sales Tax ID Number, purchase insurance, secure a surety bond, and provide other necessary documents and fees<<<<

Step #2: Complete Original Facility Application

You can download the form online or call the Office of Vehicle Safety and Clean Air at 1-518-474-4653 to get the form.

>>>>>>You can have My consulting firm do this all for you 😁

Step #3: Complete Other Requirements

  • Get a Certificate of Authority and Tax ID

    The Certificate of Authority and Sales Tax ID number are issued by the New York State Department of Taxation and Finance (DTF).  You may apply by visiting the NY State DTF website.  Be sure to record your Sales Tax ID on the Original Facility Application.

  • Obtain Worker’s Compensation Insurance
  • If you are an individual or partnership, you will need to get a Business Certificate from the County Clerk.
  • If you are a CORP or LLC, obtain Filing Receipt from NYS Department of State
the Used Car Dealer License Requirements for NY

A dealer license allows you to do more

 

 

 

 

 

 

 

 

 

Step #4: Purchase a New York State Motor Vehicle Dealer Bond

The major prerequisite for getting licensed in New York State is being able to qualify and obtain an auto dealer bond. A New York State Motor Vehicle Dealer Bond is a type of surety bond that protects your customers. If a customer whom you sold a car to, feels you are running an unethical business, they can make a claim against your bond. The actual bonding amounts vary depending on the amount of vehicle sales and the license type.

So the surety bond amounts:

  • $20,000 bond if selling less than 50 used vehicles/year
  • $100,000 bond if selling more than 50 used vehicles/year

You will pay somewhere between 1-15% of the total bond amount, based on your personal credit. This would be annual payment.

Step #5: Pay fees

  • $37.50 non-refundable NY Dealer License application fee
  • $450 NY Dealer License registration fee.

If you are not approved for an NY Dealer License, the $450 fee will be refunded to you.

Step #6: Submit Documents

Mail or bring your NY Dealer License forms, documentation, and NY Motor Vehicle Bond to the Commissioner of Motor Vehicles.

Bureau of Consumer and Facility Services
Attention: Application Unit
P.O. Box 2700
Albany, NY 12220-0700

Step #7: Check the mail in 4 weeks

You need to be ready for an Automotive Facilities Inspector (AFI) to interview you and inspect your dealership premises during this waiting period. Download this PDF to review the checklist as per DMV–> Read this.

Wait for the Commission of Motor Vehicles’ to process your NY Used Dealer License application. This could take up to 4 weeks.

  • If your application was not accepted, you will be refunded your $450 application Fee.
  • If your application was accepted, you will be issued a New York Used Car Dealer License.

This is the whole process…it can be a bit much for the average person to do, or want to do. The used car dealer license requirements for ny keeps many people out of the business because of the high financial hurdle you have to jump over and be able to maintain for the first 6 months from you savings. Auction Access is an alternative to becoming a Licensed Dealer (with less costs)….it gets you into the nationwide Manheim and Adesa, Iaa, CarMax Dealer auctions right away. Start buying wholesale vehicles right away. Buy online and go the physical auctions. It’s a sponsorship but it get you most of the benefits you need right away for a small sign-up fee. A licensed used car dealer processes all of your titles and re-assignments.

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Free Custom Website for Dealer Representatives [VIDEO]

Posted on by November 20, 2017

We are now offering a Free custom Website for our Dealer Representatives (annual memberships only) 

Top Benefits of having a website for your business

  • Prospective clients can find you: This is one of the most important reasons to have a business website. People are looking online for your services. When they search, will they find your business? If they can’t find you, they can’t hire you.
  • Prospective clients can learn more about you: People want to know more about the people they’re considering hiring. For B2B service professionals, this is especially important because even when you meet people in person, they will look you up online to learn more about you. When people search for you online, they should find a professional website that provides information about you and your business.
  • You can convey your credibility: If someone is considering hiring you, they’ll want to know about you, your background, and your experience. A good business website should include an “About” page that provides this information as well as testimonials about your work.
  • You can showcase your solutions: As a service professional, you help clients solve specific problems and your website can show prospective clients how you can help them (and if your business doesn’t help someone with a specific problem, you might need to rethink your business!).
  • You can share your expertise: A website with a business blog is a great way for you to share information about what you know. This gives prospective clients an opportunity to learn more about how you can help them. A blog also helps with search engine optimization, since it helps search engines to find your website and serve it up in the search results, which will drive more traffic to your site.
  • Generate leads: Once someone finds your site, make it easy for them to contact you. Prospective clients should be able to fill out a form, pick up the phone, find an email, or otherwise contact you easily so that you can follow up with them.
  • Serves as a hub for your social media profiles: If you are not yet using social media, you should reconsider that decision. Social media is a great way to ensure that information about your business and services can be shared online, making it easier for people to find out about you and how you can help them. Your website then becomes the glue that holds it all together.
  • Collect contact information from people interested in your services: Wouldn’t it be great to have access to a list of people who are interested in your services and who have voluntarily given you permission to contact them about how you can help them? You can do this with newsletter signup form on your website.

However, having a website doesn’t mean that you should have just any website. Let’s face it, some sites just don’t look good! They may be old or outdated, be cluttered, or otherwise make a less than stellar impression. Even worse, they may have a “Free website by…” at the bottom, which sends a signal to your customers that even you won’t invest in your business – why should they?

To really get the benefits of a website for your business, your site will need to serve as a professional online presence that conveys your credibility, showcases your solutions, and makes it easy for people to contact you. Additionally, it should be optimized so that people can actually find it when they search online. And, it should be easy for you to update on your own, without being tied to a web developer every time you need to make a change to your site.

Source ~www.ccmarketingonline.com/the-benefits-of-a-website-for-your-business/

Texas Used Car Dealer License Requirements

Posted on by December 1, 2017

Texas Used Car Dealer License Requirements

Texas Used Car Dealer License

be the boss of your own business


5 Easy Tips on How to Get a Dealers License in Texas

If you want to get your used car dealer license in Texas make sure that your application will be accepted the first time you submit it, be extra careful when filling in the form itself, and when preparing the documents that accompany it. Everything is done online of course. No paper! Verify that you are giving your correct phone number and address, so that TxDMV can contact you .

First step is find a suitable location for your business. To quickly get you Texas Used Car Dealer License, you must determine whether local zoning regulations allow you to operate a used car dealership on the site. The application must include documentary proof that you hold a lease on the property or own it outright.  Additionally, you must include photographs, maps and physical measurements of the site. Shoot the photographs as instructed in the application.

The usual documents that are required along with your Texas Used Car Dealer License application are:

  • Proof of an established and permanent business location (proof of lease or ownership), that is compliant with local zoning and equipped with a permanent business sign. It should have space for at least five vehicles of the type that you want to deal with.
  • Certificate of Incorporation, Organization or Partnerships to prove the legality of the entity applying for a license.
  • If your company is a partnership, corporation, limited liability company or limited partnership, you have to provide your Employer Identification Number (EIN), obtained from the Internal Revenue Service, on your application form.
  • For most types of licenses, you need to submit a surety bond in the amount of $25,000. The bond should cover a period of two years that matches the dates of the license duration.

source~https://www.bryantsuretybonds.com/blog/how-to-get-a-dealers-license-in-texas

Do you need a license? Here is a quick way to tell. If you  who sells 5 or more vehicles in a calendar year you need one. If you sell one or more vehicles not owned, titled and registered in your name, you need one. So lets go further into what you need to understand as it relates to your Texas Used Car Dealer License Requirements.

Texas Used Car Dealer License

get your own license

A person may sell up to four vehicles per calendar year without a license, provided they are all titled and registered in his name. So if you want to make money  in the car business buying and selling cars in Texas, this is how you do it.

Go here –>If you want quick Auction Access to Manheim/Adesa/iaa, CarMax Dealer Auction

If you want your Texas Used Car Dealer License,  you must know that starting March 2017, the Texas DMV replaced its paper-based licensing system with eLICENSING. You can now apply, renew, or amend your motor vehicle dealer license online. To receive email updates regarding eLICENSING, visit www.TxDMV.gov/subscribe and check the box beside the Dealers and Manufacturers subscription topic.

A GDN is the basic dealer license that allows a person to buy, sell or exchange the type of used vehicle for which the GDN is issued. GDN licenses are divided into several categories. When applying for license, you must select one of the independent license types on the application. If you wish to have multiple types, you may submit multiple applications.

These are the two that you would most likely choose from:
Independent Motor Vehicle – May buy, sell, or exchange any type of used cars, trucks, motor homes, and neighborhood vehicles. Are required to have a five-vehicle display area. May use dealer’s temporary tags, buyer’s temporary tags, and metal dealer license plates on motor vehicles only. Must provide a bond.

Wholesale Dealers – sell or exchange vehicles only with other licensed dealers. Are NOT required to have a five-vehicle display area. May NOT sell vehicles to retail purchasers. Wholesale vehicle dealers may buy, sell, or exchange used vehicles, including motor vehicles, motorcycles, and travel trailers. May buy, sell, or exchange new or used trailers and/or semitrailers. May use temporary tags and metal dealer license plates. Must provide a bond.  

source~http://www.txdmv.gov/dealers/licensing/elicensing-resources

Get your GDN through the eLICENSING portal.

You might need to get more than one GDN.

Questions arise as to when a dealer needs an additional GDN. The following are some examples that a dealer would need to obtain more than one license/GDN:

  • Franchised dealers need a franchise license in addition to the GDN.
  • Franchised dealers must obtain a separate franchise license for each location that new motor vehicle sales are made.
  • Dealers who own dealerships in different cities.
  • Franchised or independent dealers who wish to sell different types of vehicles (i.e. a motorcycle dealer who wishes to sell trailers as well).
Texas Used Car Dealer License

be deliberate with your checklist

You will need a surety bond to business:

A TX Auto Dealer Bond is a type of surety bond that protects your customers from fraud or misrepresentation during a business sale. It is a requirement to get your Texas Auto Dealer License.

The bond amount is set at $25,000.

You won’t have to pay the full bond amount to get bonded. You will just pay a small-one time fee that is based largely on your personal credit score.

Exceptional credit score rate: $250

Bad credit score rate: $1,000 – $3,750

source ~http://blog.suretysolutions.com/suretynews/how-to-get-your-texas-dealer-license

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7 Quick Tricks to improve your Credit Score

Posted on by November 14, 2017

Improve your Credit Score with these quick tips and tricks

Even if you are not in the car business buy and selling with auction access, you still are very aware of the importance of having good credit. The biggest trick you can do is to pay your bills on time and make an extra payment once a month on your larger balances (towards principal).

improve your credit with these tips andtricks

quick credit repair tips

  1. Knock the errors off your credit reports

According to the Federal Trade Commission, about 5% of consumers have errors on their credit reports bad enough to result in a higher price for a financial product or insurance. You can get a free report every 12 months from each of the three major credit bureaus: Equifax, Experian and TransUnion. Using AnnualCreditReport.com, request those reports and check them for mistakes, such as payments marked late when you paid on time or negative information that’s too old to be listed.

  1. Stay well under your credit limit

Your credit utilization — that is, how much of your credit limit you use — has a big impact on your score.

Bruce McClary, spokesman for the National Foundation for Credit Counseling, says it’s best to keep balances to 30% of your credit limits or less. Both overall and per-card utilization counts.

  1. Deal with past-due bills, get on top of payments

No strategy to bump up your score will work unless you’re also paying on time. Why? >>>Payment history has the single biggest influence on credit scores<<<

If you’re behind on any accounts, call the creditor. Arrange to pay up and ask if it will rescind the reported delinquencies so they no longer appear on your reports.

source ~https://www.nerdwallet.com/blog/finance/raise-credit-score-fast/

improve your credit with these tips

pay your larger bills twice a month

7 steps to raise your credit score

  1. Watch those credit card balances. One major factor in your credit score is how much revolving credit you have versus how much you’re actually using. The smaller that percentage is, the better it is for your credit rating.
  2. Eliminate credit card balances. “A good way to improve your credit score is to eliminate nuisance balances,” says John Ulzheimer, a nationally recognized credit expert formerly of FICO and Equifax. Those are the small balances you have on a number of credit cards.
  3. Leave old debt on your report. Negative items are bad for your credit score, and most of them will disappear from your report after seven years. However, “arguing to get old accounts off your credit report just because they’re paid is a bad idea,” Ulzheimer says.
  4. Use your calendar. If you’re shopping for a home, car or student loan, it pays to do your rate shopping within a short time period. Every time you apply for credit, it can cause a small dip in your credit score that lasts a year. That’s because if someone is making multiple applications for credit, it usually means he or she wants to use more credit.
  5. Pay bills on time. One of the biggest ingredients in a good credit score is simply month after month of plain-vanilla, on-time payments.
  6. Don’t hint at risk. Sometimes, one of the best ways to improve your credit score is to not do something that could sink it.
  7. Don’t obsess.  You should be laser-focused on your credit score when you know you’ll soon need credit. In the interim, pay your bills and use credit responsibly. Your score will reflect these smart spending behaviors. But don’t obsess.

source ~www.bankrate.com/finance/debt/7-simple-ways-improve-credit-score-1.aspx

improve your credit by using these tips

the top secret is apply for credit when you don’t need it.

3 ”Secret” ways to increase your credit score

  1. Find out when your issuer reports payment history

Call your issuer and ask when your balance gets reported to the credit bureaus. That day is often the closing date (or the last day of the billing cycle) on your account. Note that this is different from the “due date” on your statement.

Now, there’s this thing called a “credit utilization ratio.” This is the amount of credit you’ve used compared to the amount of credit you have available. You have a ratio for your overall credit card use as well as for each credit card.

2. Pay twice a month

Let’s say you’ve had a rough couple of months with your finances. Maybe you needed to rebuild your deck (raising my hand) or get a new fridge. If you put big items on a credit card to get the rewards, it can temporarily throw your utilization ratio (and your credit score) out of whack. Start paying twice a month. Send in your regular payments, then if you can, send in secondary payments (can be small $20) to be applied against your larger bills.

3. Raise your credit limits

Now, if you tend to have problems with overspending, don’t try this. The goal is to raise your credit limit on one or more cards so that your utilization ratio goes down. But again, this only works out in your favor if you don’t feel compelled to use the newly available credit.

I also don’t recommend trying this if you have missed payments with the issuer or have a downward-trending score. The issuer could see your request for a credit limit as a sign that you’re about to have a financial crisis and need the extra credit. I’ve actually seen this result in a decrease in credit limits. So be sure your situation looks stable before you ask for an increase.

source ~http://clark.com/credit/5-sneaky-ways-to-increase-your-credit-score/