If you are in starting a business involving cars, then becoming an auto wholesaler is likely to fall among your aspirations. Nonetheless, there are some things that you need to consider before you get the ball rolling. One of them is getting licensed. This license is issued by the DMV of the state that you wish to practice in. You will therefore need to submit an application to the same. If you are new to this, here is how to go about getting a wholesale dealer license.
What Are the Wholesale Dealer License Requirements?
Before going ahead to submit an application for a wholesale dealer license, you must ensure that you meet the stated requirements for the same. These will vary depending on the state. Nonetheless, there are some that you can expect to come across during your application. One of them is to have enrolled and passed a training course that is relevant. There is also business registration and location, surety bond, and others. It is advisable that you visit the relevant state DMV website to find a complete list of all that is required before moving ahead.
Steps to Getting a Wholesale Dealer License
Obtain a Business Registration
An auto wholesale dealership is a type of business. Hence, with no doubt, you need to obtain a business license for the same. This way, you will be conducting your business legally including the business name that you will be using. If you will be operating your business across different states, then this will mean acquiring different business licenses as per each state.
Get Your Dealership Location Approved
This is a requirement that you will have to pass, but only in some states. This is because wholesale dealership does not involve selling on retail, and therefore do not need a specific business location. For some states, the same can even be conducted at one’s residence.
Nonetheless, there are states where location is a requirement. It is best that you forts check with the relevant state authority as to what the location requirements are. After this, you can go ahead and find a suitable location for your dealership business.
Fill in Your Wholesale Dealer License Application
When applying for your wholesaler dealer license, this is the primary document that you need to fill out. A part of this will involve responding to some questions which are bound to be both personal and business-related. There will also be those that are related to a background check for both you and your business.
Part of the application will also involve proving that you have met some of the pre-qualifications as defined in the application requirements.
Submit the Application and Pay the Relevant Fees
Once you have properly filled in the wholesale dealer license application, you can move on to the next step which is to submit it. This process normally involves paying a certain fee. This will vary depending on the state where you are applying. There are those that will only ask for an application fee. Whereas, there are those that will also ask for a license fee. If your application goes through, you can expect to get your license within a few weeks.