Starting An Auto Dealership

Posted on December 30, 2011 by Aaron

Becoming a licensed car dealer is a complicated process that many entrepreneurs undergo once they realize that in most states, selling more then five cars a year as a private citizen is referred to as curbstoning, and is a low level misdemeanor.

Though the specific requirements vary on a state-by-state basis, the fundamentals of starting an auto dealership remain the same regardless of individual circumstance. Assuming that you are already a licensed dealer, successfully starting an Auto Dealership hinges on a few crucial steps.

The key aspects are centered on a few things: a location that has enough space to show a respectable amount of cars, a surety bond for an amount specified by the individual state, and of course, being officially licensed.

The next step in the process involves finding a reliable method of obtaining inventory. For most initial dealers, this means car auctions. Signing up for auctions provided potential dealers with the ability to cheaply and reliably stock their dealership with inventory, as well as meeting specific vehicle requests that customers may have.

The next step involves the legal documentation aspect of the process, and may require legal counsel. This includes the creation of a buyers guide, a disclosure agreement, and all of the forms related to sales transactions. Contacting the stats DMV can also be a useful method for learning about sticker requirements. The application process for car removal and car rejection stickers is also an important part of the process. They are used when a vehicle must be returned to the manufacturer.

Finally, advertise in a clever and unique way, and begin generating profit.

 

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