I try to help here as much as I can with newbies and I dont mind helping with Porsches. But in real life most auto buyers are not as smart as Porsche owners
and actually fear buying cars. I was thinking I could lend some of my superior Porsche Intelligence ( as well as getting more material for new jokes) to the regular auto buying public. I think you need a brokers license for this. How does one get a licnese and what kind of advantages does a licence bring you? this seems like it could be a minimumally profitable hobby for those who like to dabble in cars. Any knowledge base out there on this?? I get asked by people here in my town to help them with auto purchases all the time. I guess people assume you know one or two things about cars by default if you own a Porsche.

 

Well, it could be a license to steal so here in New Mexico it is pretty regulated - have to have a place to conduct business, show that you do, ect..I would imagine that CA is even more stringent - to be a dealer. Just reread your post and perhaps a broker is something all together different. Maybe ask Fill aka Phil aka the resident dealer..and a Californian.

 

I'm not sure about needing a brokers license (never heard of one anyway). Do know for dealer licence you generally need location dedicated to selling cars and need to purchase dealer licenses and related insurance. Benefit is you don't have to pay for registration on new cars and you can get rid of current auto insurance. Downside is warranty woes if selling cars and fact you have to have dealer plate on that beautiful red car that you probably won't sell anyway. I am no lawyer and probably am not even qualifed to provide you any guidance related to your question, but a friend of mine does exactly what you are describing and is compensated 500-2000 per car purchase. Good luck and there are plenty of people who hate negotiating and evaluating a car that I would think with the right marketing you should be able to keep yourself as busy as you want. Or go out of business. Either way I know I am right. RK

 

John All i would like to do is maybe make a buck or two for all the time I use researching cars for my local Ridgecrusteceans here, used Avalons and Tacomas and the like. But I could see where I could use this to find a gem of a 993 and present it to Rennlisters or something like that. I dont know. Seems like there could be some fun here.
I bet youre right on the LENGHTY California regulations on this. BUT being half hispanic I should be able to read the regulations since they're probably written in Spanish!

 

Spanglish.

 

http://www.dmv.ca.gov/vehindustry/ol/dealer.htm

 

There is a healthy amount of leg work you need to do. Every state is different but here in CO you have to take an exam, get a 35K surety bond, have a visable place of business with a sign, get dealers plates, insurance, etc.
But I am with you on the dealer/broker side of things. I think there is plenty of room to go to the auctions or purchase a car off of an other dealers lot for the dealers price versus the retail price. There are other types of auto reseller licenses out there. If you look in your state DMV site you will find out all the other types of less stringent licneses.

 

Can't you just advertise yourself as a consultant, charge a percentage fee of the negotiated price of the sale, under a small business license...or something?

Wasn't the smoked salmon enough of a fee for finding my TT? Oh...plus the 56K you charged me....

Marc

 

Auction license? You can get the cars maybe on a much lower price? My .02.
Andrew

 

One year the DMV sent me a letter saying that if I buy and sell any more cars, I would need a dealers license to do so. And, yes, I do buy and sell cars often, but mostly for my own enjoyment.

In fact, the person who bought my Prerunner is coming over tonight to take delivery So now I need to buy another daily driver, preferably...tonight..

This is something that I always had an interest in doing, but its competitive and takes A LOT of time going to auctions, advertising and, I feel, need to offer financing if the cars you plan to sell are priced more than $10K..

 

you have to have a dealer lic. to attend a "real" auto auction. Also at auction you dont' get to have a PPI and a bodyshop go over the car. You buy "as is" as in if the car breaks in half.......you own both halfs.
then you have to resell the car with any problems it may have. Most nice cars do not wind up at an auction, unless perhaps comming off lease. For the most part 7-10 yr old cars are not comming off lease!3

and at auction......you need cash, or cashiers check, or a line of credit with a major lender that must be approved by the auction house. ie if they don't know you, you better have cash/cashiers check.
in addtion to buying the car there are auction fees, buy fees, and if you use the line of credit (called a draft) draft fees............so lets continue. you have got the dealers lic......got yourself into an auction and found a 1996 993 with 50k....well you get to bid on the car........along with 100+ or even more people....somehow you keep your hand raised, and wind up with the car.....good job..you pay for the car, and all the fees.......get it home/lot......now in CA you have to smog and safety the car........1st smog!......oops check engine light is on....CLOGGED PORTS...your a dealer now...there is no smog ref for you!!.....so you spend x thousands to be able to smog the car...........car smogs.........next safety.....hmmm......needs complete brakes, you didnt catch that the tires were at the wear bars in all the haste of buying the car......need 4 tire, and they have to match the speed rating of the car........ok .....so the car is now smogged and saftetyed.......advertise........sit and wait........take to be ppi'ed for someone...take to the bodyshop for someone.......ooops...car had the front fender repainted........buyer wants out, and you are a thief, rat, goat, pig...trying to sell a damaged car........soon your name is all over rennlist........well you get the point.
If you want to make a small fortune in the automobile retail busniness........start with a big one!!......or spend 15 -20 yrs learning the biz

 

Hey Phil - you didn't get to the good stuff:
You finally unload the great buy from the auction & then after a few months during morning coffee at home you get a telephone call from the buyer's attorney demanding to rescind the deal just because the frame had been straightened a bit which you, despite your presumed superior knowledge as an expert in used cars, failed to discover & failed to disclose while you gushed about the car's pristine condition.
Fortunately your call from the threatening lawyer is interrupted by a well dressed couple at the door who, unfortunately, turn out to be investigators from the Attorney General's consumer fraud unit pursuing your bent frame buyer's complaint.
As you show the investigators out, a film crew from the local news' "action team" is unloading their camera from the van in front of your house as part of a sweeps week series on fly by night used car scammers operating businesses from their homes. That series is followed with great interest by your local Prosecutor investigating zoning violations & by your subdivision trustees who have gotten calls about people test driving fast, loud cars in the neighborhood.

Having represented franchised car dealers for 25 years, it's a tough, competitive, high risk business which when it's good can be very lucrative & when it's bad can really suck.

 

I'll add this.

Between My post above, and Dans post...that’s only scratching the surface. Sometimes it’s just better to fantasize about being a car dealer.... than to actually be one.

 

wow, get out of my way, where do I sign up?!

 

I echo with even harsher rethoric, the words of Dan 96C2 and Fill: You want to make a small fortune? Start with a large one, becdome a auto dealer/broker, and if you are really, really fortunate, end up with a very small one, that is if you are smart enough to quit while you are ahead!
I spent most of the last 35+years in the auto business-in the '60's it was fun and once in a while in the '70's and '80's, but along came the litagators and a a few crooked car dealers and vola! Post a bond, garage keepers liability ins., full disclosure, even if you don't have the info you should have disclosed.
Todays car dealers a large, often multiple new car franchises with mult. used car lots who go to the same auctions you would be attending, except they have verrrry, deeeeeep, pockets, which means that they can hold up ther hands longer than you can if its the kind of vehicle that you want to buy to resell.
So goood luck! I honestly hope that you can do this, succeed, make $'s and maintain your integrity!
Richard