Beginning a business involves many steps to be taken in the right order. An automobile seller will need to know how to obtain dealers license as one of the first actions to take. Several governmental conditions must be fulfilled before the first car is sold. The best place to find out what to do is visit the Department of Motor Vehicles (DMV) and the Department of Revenue (DOR) in your area to begin the process.
After getting whatever materials that outline how to get an automotive dealer license from the DMV, the prospective business owner should begin the application for permit. Because this can be a long time frame, some areas might mandate a pre-licensing course. Topics may include the area's "lemon" laws and specific requirements for getting permits to do business.
An appropriate place for buying and selling might be specified in the DMV brochure. Lot size, entry and exit plans, physical building specifications and locations may all be regulated under the permit. Additionally, the Department of Revenue may have guidelines on the location of the dealership.
Once the location has been decided upon, the DMV inspector will make sure it meets the specified criteria. Most times, the license will not be granted until this is done. Some areas take months from application through inspection to approve these permits.
Good sense would dictate that with large inventories of costly merchandise and physical plant, insurance against damage and theft would be purchased. This may also be mandatory in the area where the dealer is doing business. As with other regulations in this industry, having a car dealer bond is necessary. These documents protect the customer from harmful actions by the employees of the business through fraud, misrepresentation of products and unethical conduct by seller. Bonding is insurance for the customers.
The nature of auto dealer's business is selling cars and buying the customers' used cars is an adjunct to that process. This results in an inventory of used vehicles that may be sold on the lot or sold in an auto auction. The auctions require a car dealer auction license to register and participate.
Keeping all the mandatory and essential steps straight can be a daunting task when setting up a new business. Proper research and record keeping skills would make learning how to obtain dealers license and to begin selling vehicles an easier road to follow.
After getting whatever materials that outline how to get an automotive dealer license from the DMV, the prospective business owner should begin the application for permit. Because this can be a long time frame, some areas might mandate a pre-licensing course. Topics may include the area's "lemon" laws and specific requirements for getting permits to do business.
An appropriate place for buying and selling might be specified in the DMV brochure. Lot size, entry and exit plans, physical building specifications and locations may all be regulated under the permit. Additionally, the Department of Revenue may have guidelines on the location of the dealership.
Once the location has been decided upon, the DMV inspector will make sure it meets the specified criteria. Most times, the license will not be granted until this is done. Some areas take months from application through inspection to approve these permits.
Good sense would dictate that with large inventories of costly merchandise and physical plant, insurance against damage and theft would be purchased. This may also be mandatory in the area where the dealer is doing business. As with other regulations in this industry, having a car dealer bond is necessary. These documents protect the customer from harmful actions by the employees of the business through fraud, misrepresentation of products and unethical conduct by seller. Bonding is insurance for the customers.
The nature of auto dealer's business is selling cars and buying the customers' used cars is an adjunct to that process. This results in an inventory of used vehicles that may be sold on the lot or sold in an auto auction. The auctions require a car dealer auction license to register and participate.
Keeping all the mandatory and essential steps straight can be a daunting task when setting up a new business. Proper research and record keeping skills would make learning how to obtain dealers license and to begin selling vehicles an easier road to follow.
About the Author:
You can find out how to obtain dealers license when you visit the website today. An automotive dealer license allows you to sell an unlimited amount of cars, plus provides other benefits.
