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Attaining Dealer License

Discussion in 'California (Southern)' started by TG, Sep 26, 2010.

  1. TG

    TG F1 Veteran
    Silver Subscribed

    Oct 26, 2004
    5,685
    Newport Beach, CA
    Full Name:
    Taylor G.
    Knowing someone did this before buying an F-car, with the intent of only buying one F-car, is it worth going through the process? What are the fee's associated with it? Benefits? Insurance, and any other details would be appreciated...
     
  2. technom3

    technom3 F1 Rookie
    Silver Subscribed

    Mar 29, 2007
    3,393
    Phoenix AZ
    Full Name:
    Justin
    it is a very deep and involved process. It take MONTHS to set up, you have to set up a bond, qualify for insurance and in some cases have a building zoned in a particular area. Also, you must have a proper sign and the state will come out and inspect everything to make sure everything is on the up and up.

    It really isn't all that beneficial if you are purchasing one car... or even one car a year. The cost of dealer insurance as well as higher deductibles as well as justifying dealer use if you are involved in an accident at 1am on saturday night can get sketchy. Also, your insurance may want to hear about that as well...

    Also, the benefits are only good if you can pay 100% of the car in cash up front. If you finance the car you will get ZERO benefit from it.
     
  3. xs10shl

    xs10shl Formula 3

    Dec 17, 2003
    2,017
    San Francisco
    As mentioned, CA DMV requires that you have a signed lease in a properly zoned building, with a signature from a city planner as proof.

    If you are only going to buy one car, my advice is to pay the taxes and be happy. You will spend much more time and money on obtaining a license.
     
  4. plastique999

    plastique999 F1 Rookie
    Silver Subscribed Owner

    Nov 9, 2008
    4,569
    SoCal
    Full Name:
    Edward
    Bumping this again....has anyone gone through this process? I understand it takes time and a lot of paperwork, but if one buys and sells a couple cars a year, seems it may save on taxes, registration and insurance.
    For a wholesale license, can you operate from home?


    Sent from my 16M
     
  5. 360HB

    360HB Formula Junior
    Silver Subscribed Owner

    Sep 10, 2016
    338
    I did it for this specific process. its great to have dealer plates to slap on anything you want. If you want to shortcut the process, PM me. I am forming a new dealership with another friend, wouldnt be too hard to add another person to the license at this point. I already have the location. As soon as my new dealer license is approved, ill be surrendering my current license as I formed it with my 501(c)3 to get out of some taxes but its currently limiting my potential with the license. (THIS IS NOT MY PRIMARY BUSINESS) I just do enough to make some decent money, and be able to buy whatever I want at the auction (CASH ONLY.) I dont use any flooring nor do I offer financing to my clients.

    Hit me up if your interested in getting in. I'm located in Huntington Beach.
     
    plastique999 likes this.
  6. jlonmark

    jlonmark F1 Rookie

    Mar 29, 2005
    2,864
    Beverly Hills, CA
    Full Name:
    Jay
    Go for your wholesale license, it's much easier
     
  7. 360HB

    360HB Formula Junior
    Silver Subscribed Owner

    Sep 10, 2016
    338
    Then you are stuck with everything you buy, you can’t even legally register it to yourself. I started with a wholesale only license. Switched it out not even 90 days later.

    You can’t even transfer titles to a non dealer out of state. You’re 100% stuck with everything you buy unless you have another dealer who will retail run your cars for you. You’re going to pay a fee usually $500-1000 per car, then you’re going to pay tax and dealer fees on top of that. 100% not worth it!
     
  8. Jedi

    Jedi Two Time F1 World Champ
    Owner Lifetime Rossa

    Mar 18, 2008
    27,696
    Seattle Area
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    Jedi
    Wow!! NINE YEAR OLD Zombie thread resurrection - that's gotta be close to a record!! :D:D

    Jedi
     
    plastique999 likes this.
  9. 360HB

    360HB Formula Junior
    Silver Subscribed Owner

    Sep 10, 2016
    338
    I believe Edward bumped it purposely instead of starting a new thread
     
    plastique999 likes this.
  10. mamen644

    mamen644 Rookie

    Aug 13, 2019
    2
    Full Name:
    Mitch Amen
    Impeccable timing, I have recently been trying to navigate various states dealer laws and hoops, trying to figure out the easiest process. The fact that this near decade old thread was resurrected just days ago is awesome! I'd definitely be interested, I will shoot you a PM.
     
  11. 360HB

    360HB Formula Junior
    Silver Subscribed Owner

    Sep 10, 2016
    338
    No problem, where you located?
     
  12. mamen644

    mamen644 Rookie

    Aug 13, 2019
    2
    Full Name:
    Mitch Amen
    The great state of Nebraska actually
     
  13. plastique999

    plastique999 F1 Rookie
    Silver Subscribed Owner

    Nov 9, 2008
    4,569
    SoCal
    Full Name:
    Edward
    Thank you! PM sent


    Sent from my 16M
     

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