New from Texas...

[CBGB]

Spent some time looking over the forum, nice site...I am a young college student looking to make some extra money on the side by buying cars at auctions and re-selling. The idea just popped in my head and seems doable. How do I go about getting my dealers license? I want to remain a small timer and just make some extra money. If anyone has some input or advice it would be greatly appreciated. Thanks...

[mchastek]

Thanks for the compliments on the site - and thanks for joining us! There are some other members here who are trying to do the same thing you are. You might want to poke around and do some searching and send them a message. You might be able to put your heads together! I've heard that doing this can be very difficult unless you're a very skilled mechanic and you know exactly what you're buying.

Sorry I don't have more specific information for you - but good luck!

Welcome to the forum,
Mark

[Dealer123]

Hi CBGB,

To apply for your dealer licence go to your local DMV and ask them for the forms required, each State has different requirements, you many need to take a 2 day coarse to become certified retailer.

Keep in mind Insurance will be required and can be costly if you are not doing enough volume, also you may be required to have an commercial address which is zoned to sell cars.

If your plan is to sell a few cars a year you may want to find a local dealer that will allow you to work under their license for a fee per transaction. As well you can learn the ropes from someone with experience.

Once you are able to go to auctions and buy cars at wholesale, there are a few good ways to sell vehicles without incurring a huge monthly overhead.

Advertise your vehicles on eBay Motors this will become your virtual dealership at a fraction of the cost of a traditional dealership.

dealer123 has an amazing all-in-one solution that creates a dealer website and has all the tools you would need manage, market and list vehicles on eBay Motors, also included are certified leasing quote tools, and finance quote tools, you can get your clients approved for a car loan in minutes.

Another great way to make money selling cars on eBay without having to actually buy the cars your are advertising is by using the dealer123 solution to list vehicles for people in your area, you can list your neighbors car on eBay and charge a fee for taking the photos, creating the auction listing using dealer123.

Below is a link to an example of a dealer123 website
http://www.dealer123.com/d123/demo1/


When you are ready to market vehicles and start making some extra revenue call dealer123 866-978-4740 they can help you.
www.dealer123.com
sales@dealer123.com

[twofatguys]

TX license requirements are roughly as follows:

Dealer license costs $500. A metal plate (for driving to and from auction in a car you bought) is $45 or so. Then you need a business phone in the business name (about $200-$300 to start, SBC has a business plan including long distance for free for about $60 a month). You need a sign facing the street and one over the door. You need a tax permit (about $10). You need to register the business name with the state (about $50). You have to have a lot which can hold five vehicles for sale (even if you only have one car for sale, you have to be able to fit five) and lots lease for anywhere from $500 a month to thousands of dollars a month. You need to have liability insurance on the business (usually $100-$150 a month for a small lot). You need a surety bond in the amount of $25,000 which if you have bad credit will cost you $6400/year and good credit more like $300/year. Then you need paperwork, forms, office supplies, tools, whatever.

I figured it would cost me about $4500 plus the surety bond plus inventory to get started with the lot I want to lease ($600/month in Haltom City, one of three dealer offices on that particular property). I have bad credit and I'd want about 15 $500-$1000 cars so I'm looking at $16-$18K to get started.

A wholesaler's license is easier to get but you still have to have a business address and phone and a bond and insurance and a sign and register the name and get a tax permit. But then you cannot sell to individuals, only at auctions, or to other dealers, or to junkyards or body shops or whatever.

http://www.cardollars.com is a good site with a lot of good information to help you get started. He sells several dealer kits starting at $400, or he sells a simple "how to get your license in TX kit" for $49. He lives in Denton and does mostly consignments and special requests and wholesaling.

It is legal for an individual to sell up to five cars person-to-person per year, assuming all five are titled in your name. If you leave titles open, you also leave yourself open to trouble from the state, because they want their sales tax and registration money. If you're selling five cars a year and making $500-$1000 apiece, it won't be long before you have enough money to open your own lot. I can also have my wife buy five more each year so if I do this right I may have enough money by this time next year, do ten between now and December 31st, then do ten more after the new year.

[CBGB]

Wow, a lot of great advice, I really appreciate it. I will be looking into this asap. Thanks again!!!