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Precautions For Car Buying For The Licensed Dealer

Posted on December 28, 2011 by Aaron

There are various scams existing in the auto license dealership market. One must be very well-informed indeed to keep abreast of these scams. One very notorious scam going around is where you pay a non-refundable fee which would be between 1000 to 4000 dollars and an additional $500 per month for which they will make it “seem” that you are working under someone else s auto dealer’s license. They normally help you start your business in a state where the regulations for car dealers are less stringent.
Wholesale auto auctions allow out of state car dealers to take part in their used auto dealer auction. This looks to be a good thing, but the catch is that although these licenses allows you to buy and sell at auto auctions as well as to other wholesale dealer, this dealer license cannot be used to sell car to the retail public. Many people do not realize that a wholesale dealer license cannot be used to sell used cars to the public.
If you are looking to sell cars to the public you need to get a retail car license. There are some dealers who “sell” their licenses to people online and give them the vague description of “agents of the dealership”. Most of these are scams as either the licenses would be revoked or have expired. The other probability is that the license has a debt against them. Some others are wholesale dealer license which will not allow you to sell cars to the public. Having a valid auto dealers license allows you to take part at dealer auctions where you can buy as well as sell vehicles at auctions. You can also participate in vehicle auctions nationwide.