Know how to become a licensed car broker
If you aspire to be a car broker, you need to know the steps to become one. To sell either new or used vehicles, or to fit in the shoes of a broker or wholesaler, a car broker license is needed. Dealer licenses are issued by the state Department of Motor Vehicles. Only after you get a license, you will be entitled to act the role of a dealer. Clients will respond to your service if you can give them beneficial offers and discounts. You must also be able to explain to them clearly the deal rules.
First of all, to get licensed, you need to comply with the specific requirements for your car broker license. These include specific location requirements, passing an education course and exam and obtaining an auto dealer bond.
What types of licences are available for a car broker?
Usually, there are four types of dealer licenses in California.
These are as follows:
New - licensees can sell new automobiles to the public or to other licensed dealers, who can also hold a new or used license.
Used – licensees can sell used vehicles to the public or other licensed dealers.
Wholesale – licensees can sell cars only to other licensed dealers.
Auto broker – licensees can arrange or assist the sale of a car that does not belong to them. This sale is conducted by another person.
What do you need to register your State Business?
Before you apply for your car broker license at California DMV, you need to register your business in the state. For this, you require to enrol your business with the Secretary of State. You also have to get registered with the Board of Equalization and obtain a resale permit.
Once these steps are completed, you can apply for your license.
What are the license requirements for a California Dealer?
After the process of filling in the application form, the dealer must obtain property use verification for setting up his business in a particular location. All dealers, except wholesalers, must have a business sign at their business location.
You have to give a photograph, details of which you can get from the Occupational Licensing Photograph Requirements Page. You need to provide the DMV with certain specified documents such as copies of a lease or rental agreement, of state/business license, of the request for Live Scan Clearance, of the resale permit from the Board of Equalization and other such essential documents.
Along with submitting your application packet, you necessitate paying several licensing fees.
Obtaining a surety bond is an equally important part of the licensing process for new, used and wholesale dealers in California.
Now you are fully license-worthy. Thus, you can now secure a car broker license and ascertain your position as a certified and bonded car dealer in California. Once you have established yourself as a car broker, you need to advertise your business to catch the notice of clients.
