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.
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.
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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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