A Dealer Auction License is just permission or authorization to access the wholesale dealer auctions to buy cars. Generally speaking, your dealer auction license is just a potential extension of your state issued Used Car Dealer License… or you can be sponsored into the auctions by a licensed used car dealer. Auto Auctions in this country are a closed-in network of licensed new and used car dealers, their agents and the huge network of Dealer Auctions located around the country. If you are a state licensed used car dealer and have registered your dealership with Auction Access, then you already have an auction license included.
License means “permission or authorization”
Essentially, once you register your Dealership …you are then licensed (authorized) to gain access to the dealer auctions. The actual paper license document is issued by your home state. The dealer auction access license is inherent within the state issued dealer license.. but is only “activated” when a licensed dealer registers their dealership with a particular auction or with Auctionaccess (Auction Access is your link to the national network of dealer auctions). This now gives you a dealer auction license…because your dealership is registered with an auction or auction network.
What is a License?
The permission granted by competent authority to exercise a certain privilege that, without such authorization, would constitute an illegal act, a Trespass or a tort. The certificate or the (paper) document itself that confers permission to engage in otherwise prescribed conduct.
How to get an auction license to get into the dealer auctions
• Be a licensed Registered Dealer with valid Auction Access Account
• Be a contracted Agent of a Licensed Dealer who has a valid Auction Access Account
A dealer auction license (access) can be acquired by aligning yourself with a reputable used car dealer(ship) who is willing to put you onto their auction access Dealership account. If you are on Google doing a search for auction access license, that probably means you want to gain access to the dealer auctions…and not necessarily get your own dealers license (which can be a daunting process). Many people want to get in to the auctions to test out the idea of buying and selling cars, before they commit to the financial responsibility of a monthly overhead the average used car dealer must support.
Auction Access is an Extension of your Dealer License
So, you have two ways to get your dealer auction license. The first way does require you to get a location, insurance, surety bond, take a test and a few other things (Click here for dealer license requirements and applications)…in order to qualify for a Used car Dealer License. Once you have your dealers license, then you go to auction access and register you dealership . When you register your dealership, auction access will give you an Account Number. Now you are licensed to shop at the auctions… That is your auction access license…which is an extension of your used car dealers license.
The only other way to get your dealer auction License (auction access) is to align yourself with a licensed Dealership. This can be done in a number of ways…but it boils down to you finding a licensed dealer who is willing to sign you up or sponsor you into auction access. Basically, what they are doing is putting you on their dealership account. I would advise you to find a reputable dealer…so you get your own auction access card and your own dealer representative number from auction access. This dealer rep number links you to your sponsoring dealership.
How do you find a dealer willing to do this for you ? Well, I do know a licensed Dealership in Florida that is willing ($1349 yearly or $299 monthly)…all you need is a valid driver license, agree to and sign their contract, as well as pay their sign-up fee. You will get an auction access card and online buying account to Manheim and Adesa Dealer auctions. You will have access to Iaa (Insurance auctions) , as well as CarMax Dealer auctions. Or you can find a dealership on your own. It should not be too difficult to find, you can look on Craigslist and go to “Automotive Services”. Just type in auction access or Dealer Auction License in the search box and see what comes up. You will mostly likely find a few ads that you can sift thru and call up for information. But be very careful. You have a lot of unscrupulous individuals who will try to sell you anything and call it a license. First thing you have to ask them is if they are an auction access dealership. Will you get an auction access card with your own dealer representative number. You don’t want any under the table shenanigans. Accountability and the ability to financially track all of your purchases (for tax purposes) is very important if you call yourself being in the business of buying and selling cars .
Title Re-assignments
The most important thing that your auction license does for you is get your access to a licensed Dealer that can do your title re-assignments for you in a speedy fashion. When you buy a car from the dealer auction …you are literally buying that vehicle as the dealership. So how can you re-sell it? You have to get the title re-assigned and put into the Dealer’s name. The Dealer will leave the title open (over night it back to you) , so now all you have to do is sign the title over to your customer. The critical aspect of this setup is the timely processing of your title re-assignments.
Develop a good working relationship with your sponsoring dealer, your Florida Auction License depends upon it (in this scenario). It’s his or her responsibility to get your titles and re-assignments processed quickly as well as any other documents you may need such as the final Bill of Sale. A title reassignment means that the Car (its purchase price) and its Title is on the books as being owned by the dealership….but its not actually registered (at DMV) by the dealership. The car is basically sitting in “limbo” until it’s sold and registered by its new owner. At that point, the new owner will take the title, bill of sale (along with any other necessary documents) and go to their state DMV office to pay their taxes, registration fee and get their plates.
Go follow me on my other Social Media Accounts:
