An Indiana Dealer Plate Isn’t What it Seems!
If you’re in the market for a dealer license and dealer plate, you’ve probably heard about too-good-to-be-true offers online for an Indiana Dealer Plate. You know, the ones where you can become a dealer for $1000, and everything is taken care of for you. Sounds like a great deal, doesn’t it? Well, it would be, but unfortunately, obtaining an Indiana dealer plate and dealer license, is not as easy as these companies advertise.
The companies offering these “deals” do not benefit you, the customer. As a whole, the Indiana wholesale program is a sham. They claim to be able to provide you with a fully-functioning dealer license and dealer plate, leaving you to believe that by paying a one-time start up fee, you will have your very own Indiana dealer plate.
What really happens regarding the Indiana wholesale program, you ask? The money you initially invest as your one-time, inclusive payment, buys you a makeshift office inside a gutted building that these wholesale programs purchase. They construct cheaply made cubicles for you (and hundreds of others) from which you can run your dealership. The DMV inspectors meet you, or a hired representative (more cost) at the headquarters to verify that your company has an office (which, technically, it does thanks to some makeshift walls and a door), and that the building’s parking lot is suitable for auto sales.
Once the DMV Inspector approves the location for your lot, you return to your home state and are ready to sell cars, right? WRONG! You must now obtain a $25,000 bond, establish a phone number through the utility board, and purchase your own insurance policy (yet ANOTHER expense).
You go back home with a wholesale dealer plate and dealer license. You buy or rent out a lot or a small warehouse to store the vehicles you plan to purchase from auction. But then what? Your Indiana dealer plate and dealer license, which are both for wholesale ONLY, allow you to buy and sell vehicles at dealer auctions, but does NOT allow you to sell vehicles to the retail public. Your lot or warehouse is NOT a car dealership as far as your home state knows, but is a storage facility.
You end up posting ads online to attract buyers for your inventory. Since your wholesale license and dealer plate do not legally allow you to sell to the customer, the title and sales paperwork will indicate the vehicle is sold through the “retail” company that provided you with your office. They list you as an authorized dealer of theirs, allowing you to sell the vehicle on their behalf. Then, you are charged $150-200 by the “retail” seller for the transaction. This process is what allows the customer to sign the paperwork.
Many of these wholesalers offering Indiana dealer plates and dealer licenses are less than reputable and do not care about the people who sign up with them, leaving you to handle everything, even if you do not know the motor vehicle sales process. However, there are companies out there that set you up with dealerships that are tried and true, and are run by a manger-owner that cares about her or his company. These dealerships take the time to train you, the customer, on the auction process, provide insight as to what types of vehicles are selling well, and strategies on how to get the most out of your inventory. They take you on as an agent, making you part of their company, and will assist you throughout the process. Visit MyAutoLicense.com today to get connected with a dealership that will properly provide you with your very own dealer plate and dealer license.