Do You Need a Car Dealer's License to Buy at Auctions?

in Car

If you want to attend a used car auction and are wondering if you need a car dealers licence to go, you first need to determine what your purpose is. It depends on whether you are just looking to buy a good used car for your own use, or if you are planning on buying cars for the purpose of flipping them for a profit later.

There are many auctions that are open to the public, so if you want to buy a good used car at a cheap price for yourself, this is a great way to go. You do not need a car dealers licence to purchase at a public auction. However, many of the auctions are "dealer only" meaning you have to have a dealers licence to enter and bid on the cars. You can make a lot of money by buying cars at auction and then reselling them at a profit, either at another auction or to the public.

You might wonder whether it is worth getting a licence. There are many reasons why you might want to consider getting a licence. Being able to attend the dealer auctions is one, of course, but you can also buy wholesale at other dealerships as well. You can also buy and sell as many vehicles as you want. Many states have a limit of 2 personal car sales per year for profit. As a dealer, you are running a business. This could mean tax benefits, small business loans and any other perks available to small business owners.

If you want to make some money full time, or even on the side, it will be necessary to obtain your car dealers licence. It is actually not as hard as you may think, either. In many states, you need to contact your Motor Vehicle Office and they will send you a package of information of the requirements and paperwork you need to complete.

Once you decide on your objectives for attending the auctions and buying a car, you will know whether you need to register for a licence.

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Terry Paulson has 1 articles online

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Do You Need a Car Dealer's License to Buy at Auctions?

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This article was published on 2010/03/26