How does one obtain a dealer's license
12-20-2001, 07:38 PM
#1
Intermediate
Thread Starter
Join Date: Aug 2001
Location: NJ
Posts: 47
Likes: 0
Received 0 Likes
on
0 Posts
How does one obtain a dealer's license
How does one obtain a dealer's license
Can someone help me with a resource to figure out how to obtain a dealers license? I would like to be able to attend wholesale auctions and maybe setup a website to buy and sell cars.
Thanks,
Goobu
goobu@yahoo.com
Can someone help me with a resource to figure out how to obtain a dealers license? I would like to be able to attend wholesale auctions and maybe setup a website to buy and sell cars.
Thanks,
Goobu
goobu@yahoo.com
12-20-2001, 07:55 PM
#2
Addict & Guru
Rennlist Member
Rennlist Member
Dealer licensure is state regulated & the requirements vary greatly with each state. I suggest you contact your state's Dept of Motor Vehicles or a local attorney.
Since dealers generally don't pay taxes on transactions, most states are not casual about issuing dealer licenses. E.g., in my home state, among the requirements are bonding, ownership or lease of a fixed, appropriate, commercial building and lot for the "dealership" with specified signage - all verified by the highway patrol & subject to reinspection, the license holder must be "primarily engaged in the sales of [cars]," and must sell at least 6 cars/year.
There are criminal and civil penalties for violations.
Since dealers generally don't pay taxes on transactions, most states are not casual about issuing dealer licenses. E.g., in my home state, among the requirements are bonding, ownership or lease of a fixed, appropriate, commercial building and lot for the "dealership" with specified signage - all verified by the highway patrol & subject to reinspection, the license holder must be "primarily engaged in the sales of [cars]," and must sell at least 6 cars/year.
There are criminal and civil penalties for violations.
12-20-2001, 08:01 PM
#3
Burning Brakes
Goobu,
The question is not possible to answer without knowing the state you plan to operate in. In some states it is very easy to register yourself as an auto dealer, almost anyone can do it with very little hassle. In other states the requirements are very tough. For example some states require that you show proof that you operate commercial property frontage that is zoned to sell cars and you must operate a counter with signs there full-time. You are subject to stiff fines if you do not operate a bonafide dealership. Call or send away for your state's regulations.
The question is not possible to answer without knowing the state you plan to operate in. In some states it is very easy to register yourself as an auto dealer, almost anyone can do it with very little hassle. In other states the requirements are very tough. For example some states require that you show proof that you operate commercial property frontage that is zoned to sell cars and you must operate a counter with signs there full-time. You are subject to stiff fines if you do not operate a bonafide dealership. Call or send away for your state's regulations.
12-20-2001, 08:20 PM
#5
Addict & Guru
Rennlist Member
Rennlist Member
Goobu
Just spent a few minutes on the net for you. If you are in NJ as your Rennlist registration indicates, below is an excerpt of what seems to be applicable NJ law.
CYA disclaimer - I'm not licensed in NJ, the linked law may have changed, see a NJ lawyer, this advise may be worth what you paid for it, yada, yada ....
I give up - can't post as a link - here's the text:
39:10-19. No person shall engage in the business of buying, selling or dealing in motor vehicles in this State, nor shall a person engage in activity that would qualify the person as a leasing dealer, as defined in section 2 of P.L.1994, c.190 (C.56:12-61), unless : a. [deals with mobile homes] ... or b. he is authorized to do so under the provisions of this chapter. The director may, upon application in such form as he prescribes, license any proper person as such dealer or leasing dealer. [more stuff dealing with mobile homes] ... No person who has been convicted of a crime, arising out of fraud or misrepresentation in the sale , leasing or financing of a motor vehicle, shall be eligible to receive a license. Each applicant for a license shall at the time such license is issued have established and maintained, or by said application shall agree to establish and maintain, within 90 days after the issuance thereof, a place of business consisting of a permanent building not less than 1,000 square feet in floor space located in the State of New Jersey to be used principally for the servicing and display of motor vehicles with such equipment installed therein as shall be requisite for the servicing of motor vehicles in such manner as to make them comply with the laws of this State and with any rules and regulations made by the director of motor vehicles governing the equipment, use and operation of motor vehicles within the State. However, a leasing dealer, who is not engaged in the business of buying, selling or dealing in motor vehicles in the State, shall not be required to maintain a place of business with floor space available for the servicing or display of motor vehicles or to have an exterior sign at the lessor's place of business. A license fee of $100 shall be paid by an applicant upon his initial application for a license. The director may renew an applicant's license from year to year, upon application for renewal on a form prescribed by the director and accompanied each year by a renewal fee of $100. Every license shall expire on March 31 of each year terminating the period for which it is issued. On and after February 1 of each year the director shall issue licenses for the following yearly period to expire on March 31 of the following year.
Just spent a few minutes on the net for you. If you are in NJ as your Rennlist registration indicates, below is an excerpt of what seems to be applicable NJ law.
CYA disclaimer - I'm not licensed in NJ, the linked law may have changed, see a NJ lawyer, this advise may be worth what you paid for it, yada, yada ....
I give up - can't post as a link - here's the text:
39:10-19. No person shall engage in the business of buying, selling or dealing in motor vehicles in this State, nor shall a person engage in activity that would qualify the person as a leasing dealer, as defined in section 2 of P.L.1994, c.190 (C.56:12-61), unless : a. [deals with mobile homes] ... or b. he is authorized to do so under the provisions of this chapter. The director may, upon application in such form as he prescribes, license any proper person as such dealer or leasing dealer. [more stuff dealing with mobile homes] ... No person who has been convicted of a crime, arising out of fraud or misrepresentation in the sale , leasing or financing of a motor vehicle, shall be eligible to receive a license. Each applicant for a license shall at the time such license is issued have established and maintained, or by said application shall agree to establish and maintain, within 90 days after the issuance thereof, a place of business consisting of a permanent building not less than 1,000 square feet in floor space located in the State of New Jersey to be used principally for the servicing and display of motor vehicles with such equipment installed therein as shall be requisite for the servicing of motor vehicles in such manner as to make them comply with the laws of this State and with any rules and regulations made by the director of motor vehicles governing the equipment, use and operation of motor vehicles within the State. However, a leasing dealer, who is not engaged in the business of buying, selling or dealing in motor vehicles in the State, shall not be required to maintain a place of business with floor space available for the servicing or display of motor vehicles or to have an exterior sign at the lessor's place of business. A license fee of $100 shall be paid by an applicant upon his initial application for a license. The director may renew an applicant's license from year to year, upon application for renewal on a form prescribed by the director and accompanied each year by a renewal fee of $100. Every license shall expire on March 31 of each year terminating the period for which it is issued. On and after February 1 of each year the director shall issue licenses for the following yearly period to expire on March 31 of the following year.
