How To Become A Small-Time Auto Dealer

If you are looking for an easy way to generate some extra cash, becoming a small-time auto dealer may be the solution. People who are savvy enough in the selection process are able to purchase used cars and turn them for profits. There are, however, certain local and state regulations that make it necessary to obtain dealer’s licenses once higher volumes are sold. Following are several tips for getting a fairly lucrative business established.

Find out what you will need to do to get your dealer’s license in your area. This will usually require a relatively nominal fee and the completion of paperwork. This ensures that you can sell autos legally even after you surpass a certain number of sales. Dealer’s licenses ensure that sellers remain accountable and that they are paying the appropriate taxes on their profits.

You should next scout out the best places to purchase autos. If you can buy one or two, you can use some of the profits from each of these to continue to build your inventory. Most dealers of this magnitude sell only one or two cars at a time. You will have to clean each of your purchases up, verify that they are registered and ready to sell and ensure that there are no major problems.

You will also need to have several reliable places for parking these cars once you have dressed them with the appropriate signage. This negates the need to own a lot of your own and will thus, diminish your overhead. If you cannot find public spaces that will allow you to do this, you can always park your autos on your own property and use virtual sales platforms instead.

When selling cars, it is imperative that you be entirely honest in your listings. This ensures that you develop a trustworthy reputation and that people will happily refer you to their associates and friends. Thus, if there are minor repairs that you are not willing to invest in, make sure to list these things in your sales ads and to make the appropriate price deductions. Document everything, that way if a dissatisfied customer pursues legal action, you can show that you have been upfront about vehicle conditions before selling.

You should also invest in car covers. These will protect your stock from unnecessary wear and tear while you wait for qualified buyers. Covers that have a more standard fit will be usable on other cars that you buy and sell.