Get A Dealers License without a lot (The Facts)

what's up youtube welcome to automotive life my name is lucky and today we're answering the million dollar question can you actually get a dealer's license without actually having a physical lot now this is probably the most asked question i've ever gotten in the most requested video that i've ever gotten so i figured i might as well answer this because i've seen so many awful uh videos on youtube and have these guys are full of so i just figured i'd set the record straight let you guys know what to do how to do it and the reasons why you actually need a lot and some of the things that are actually going to go a little bit further beyond and if you could do me a huge favor and smash the like button for the youtube algorithm it helps me find more amazing people like yourselves and enjoy automotive content also if you feel if you've learned something please smash the subscribe button i post great content like this all the time and without any more shameless plugging let's get into the video so like i stated earlier this is the most asked question i get over and over again whether it's online uh youtube instagram or even when we do uh teaching and coaching events people keep assuming that you don't need an actual physical location to get your dealer's license now there's a few ways around it i'm going to explain the different things that you're going to need to know and how everything goes along but basically i'm going to explain the different types of licensing what goes behind them and the benefits between each one keep in mind that every state is different so some may have different types of licensing for different names you may have all of these or you may only have two of these so i'm going to go over each one and let you know the pros and cons of of each so the first one is your dealer's license a traditional dealer's license that just about anybody can get in any state and this allows you to buy cars at the auction as well as retail to the public now the reason why this one needs to have an actual physical location is because you're dealing with the public and you're dealing with personal information and you're also dealing with banks so when you become a dealer you can't get a dealership without having a physical location now there's one way around this one which i'll explain at the end of the video but the dealer's license is very important the reason you want a storefront is you need that legitimacy so this when people come to buy cars nobody wants to buy your car while you're sitting in your pajamas in your apartment they want to buy from a professional licensed dealer banks that deal with you think about it if you're a bank and you're lending millions of dollars out to dealers would you want to go to a dealership that actually is like in the back of somebody's uh driveway or something like that no it doesn't work you want to be actually have a storefront which most states require now every state's a little bit different you could require you know a large lot to have maybe 10 15 spaces some states only require maybe five so you know when it comes to a dealership people think that you have to have a really big lot and you have to have all this overhead in all reality as long as you can get a decent retail spot and actually publicize a sign that's within a certain size through your dmv regulations plus you have at least five to ten spots where you can park a few cars you can get away with a decent spot from anywhere from like 800 to probably about two grand depending on your state and that's pretty reasonable now if you get a bigger lot or some of the lots like that we have and you're looking at like 10 15 20 000 a month you know then it gets a little bit expensive so if you're just starting off i would definitely go this route with the smaller one keep your overhead low now let's say you don't really want to do finance you just want to buy cars and sell them kind of just having fun this is where you go into the next one which is your wholesale license now your wholesale license allows you to purchase cars at the actual auction buy them you know go through the paperwork do everything else but you're not allowed to sell to the general public so that's the downfall general public sales is a no-go so if you get a customer that says i got five grand right now i want to buy this car and drive away you cannot legally sell them the car what you have to do is you have to go back to a licensed dealer to make sure that you actually do the paperwork they can submit the sales tax everything else and do the paperwork for you now the pros of having a wholesale license is you can literally get a small in some states a virtual office which a lot of people do you'll see these ads online get your dealership for 3.99 or whatever else that's what they're selling you they're selling you either a wholesale a dealer's license with like a little tiny cubicle you know in some other weird state that has very very loose laws you always want to do business in your state with the license so even let's say you're in california and you don't have the money for a dealership because la's rent is freaking ridiculous so you get your wholesale license and you actually set up a small little office and then the reason why we want to do this is if you get your whole seller's license we could still help you get lines of credit to buy cars because you are still a physical business that's doing business in california and that's why we want to do it correctly don't buy these weird out-of-state ones don't say oh all it is is 4.99 i'll do it out of i think it's like alabama georgia florida all those crazy ones don't do it guys i'm telling you when flooring companies see that banks see that they will not let you buy like here in vegas if you show up with like an atlanta plate or something a georgia plate or an alabama plate you're trying to buy cars they will automatically cut you off because they know that you're gonna bounce checks there's nothing here to keep you here and it's just a lot of bad you know issues that we've had through the years you don't want to be associated with that so make sure you actually take the time and get a local state wholesaler's license the next one which depending on your state it may be called a wholesaler license or a broker license this may sound like the same thing but in different states a wholesaler's license is different like broker's license allows you to actually buy cars and physically do paperwork on the customer but you don't need a storefront some states it's the exact same opposite so this one is very very hard for me to explain because like i said depending on your state laws and regulations this one is kind of a free-for-all but just like this a wholesaler license your dealer's license you want to be licensed in your state you can start off with these two licenses and build your business you don't have to get a dealership and carry all the overhead get a small office get either your broker's license or your whole sales license and you can actually do this now there is a fourth which pretty much nobody knows about which i'll share this one with you guys you're probably wondering what the hell cr is it's car rental in some states especially here in the state of nevada if you get a car rental license you will get a dmv number your dmv number goes with your short-term leaser or lesser license which some states have some states don't they'll give you that with that number you're going to have it's an eight-digit number you take that to auction access they will give you access and you could purchase cars through the auction so let's say that you're watching this and you just want to get a dealer's license so you can buy cars for turo you don't have to go out and get a dealer's license you can get this now there's definitely benefits because if like i said you buy a car from the auction and it doesn't work out let's say it's not that popular if you have a dealer's license you could take it right back but when you're a actual uh car rental company you have to pay sales tax the second you buy and register you can't wipe that away or with dealer's license as long as you take it back to the auction and cancel your placard you're allowed to do that so you know these are the few ways that you can actually basically get your license and be legit it's not that expensive to do any of these you know the biggest one i always tell people is your actual location when it comes to your dealership so now i'm gonna go into the fun stuff i've actually seen three people get a physical dealer's license without actually having a lot so i'm gonna explain that one in this next slide okay i'm gonna drop some wisdom on you guys before i actually start this next one so pretty much if you're trying to think of the easiest way to get a dealer's license is just actually physically going to get a dealer's license do the right thing you want to be a licensed professional to get these types of deals and to get your cars the reason you want to be set up correctly and actually have a physical location is because we want you to get signed up with banks with lenders stuff that's going to build your business you don't want to do it rinky dinky and have a bunch of issues and basically nobody take you seriously if you've watched a few of my other videos i talk about it all the time you know if you're a dealer and you want to be taken seriously by banks you need to look the part you need to show the part you need to actually have a physical location that represents you as a person as a business so make sure you get your dealer's license and actually get a rental excuse me a local state one don't go out of state don't hire these weird companies you know that's going to give you a dealer's license from wherever just do it the right way and it's really not that expensive i'm sure if you look and you you know you keep searching you can find something that's affordable also one of the things that most people don't know and depending on your state is you're allowed to hang two dealers licenses in most locations go to your local dmv and go up to your friends say hey look you know what you have this big dealership you know all i want to do is hang my license on your wall i'll give you 500 bucks if i can hang my license on your wall do it boom you're good to go now you got a great looking spot the banks will look at that flooring companies will look at that looks professional but doesn't cost you a lot of money you know so you could start out that way another thing i'm going to tell you guys and i said this a bunch of times do not now repeat do not buy under somebody else's license i see this stuff all the time and i make fun of them because i watch cars get repo'd i watch paperwork get screwed up i watch people get sued do not buy cars under anybody else's license if you're wondering why this is a perfect example there's a local dealer here in town that just went out of business last week so he had a lot of issues with his flooring company and lost all of his cars so he was in a good spot he just was you know had some financial issues so he went to one of his friends to get you know three four hundred thousand dollars to purchase vehicles so he got these vehicles from you know the auction paid cash his friend invested money into his company bought these cars put him on there his friend held the title thinking he was safe what happened was next gear in afc his foreign companies saw those cars they came in and took everything so even though the customer says well look my my friend bought him he has cash he has the the titles and everything else they don't care they will take all your cars they will lean them and they won't give them back to you and so let's say that's you you're buying cars off somebody else's license and all of a sudden you come to the shop and all the tow truck just took all your cars and you're gone you have no legal rights and plus they could sell your car and not pay you you don't ever buy under somebody's license i know people are probably watching this like well it's my friend it's my cousin whatever else hey if that's what you want to do go for it for a few dollars more you can get a wholesaler license or a broker's license it's not that bad now the next thing i'm going to tell you guys this is a disclaimer these are a few ways i saw people get dealer's licenses without actually having a physical location so the first one let's just say this is a regular house i apologize for my drawing it's not the greatest this is his two-car garage now both of these examples i saw in texas and they're both in rural areas so this is not something you're going to get in a major city so this was his house you know he had a small business but there was no places where he could actually do a dealership so he talked his local county and city into actually letting him keep his dealer's license there so he had to actually separate his garage which he did right here he had to make a separate business entrance so we're going to put that here he had to make a separate driveway down to the street so he got some concrete right here and he had to put up a sign and do all this stuff through the city through i think it took him six months of permits and getting the zoning correct and everything else like that and they allowed him to do business out of his home now that was extremely rare and very hard to do and like i said this is in rural areas of texas you can get away with that the other one that i've seen also once again was in texas is the exact same thing this gentleman had a two acre spread right outside of austin texas so if you're watching this from austin shout out so okay so this is his massive two acre plot so what he did was this one this frontage actually touched the road where his house was the back one also had its own road so what he did was he actually split his property and switched this his zoning to commercial and put his dealership in his backyard so even though technically he just walks into his backyard and starts selling cars as far as the government the state's concerned this property line is separate this is a commercial property and it is zoned correctly to sell cars out of his thing now right now we're actually talking into him it's actually building a body shop at an auto repair shop so he's going to have a full facility with the whole acre spread and i think he bought two acres i think it was for like 90 thousand dollars which is ridiculous i would die for that but um but this is about 30 minutes outside of austin texas this is actually what he has so stuff like this does exist so you technically can get a dealer's license without having a lot but you most likely need to own the property so like i said don't do it the quick way actually get the correct way of getting your licensing now if you have any questions please put them in the comment section below i personally answer every single one if you need any type of help coaching consulting my email and everything else is down below i love to help um i appreciate if you ask most of the comments in the comment section because when you guys keep asking me the same question i'll answer it like 37 times put in the comment section below so if i answer this everybody else sees it and they totally understand also if you have any questions or video ideas please put them in the comments section below i truly appreciate it once again if you felt like you learned something smash the like button for the youtube algorithm and also subscribe but like i said i'm gonna be posting great content like this all the time and we'll see you next time [Music] um

Channel: Automotive Life

Views: 30,062

Rating: 4.9667106 out of 5

Keywords: dealers license without a car lot, how to get a dealer's license, how to get a dealership license, flipping cars, car flipping, rental car, turo, how to flip cars, how to buy cars at auction without dealer license, how to buy cars at auction, Copart, manheim, adesa auto auction, iaai auction, dealer auction, dealer auction prices, how to get a dealers license, car dealer license, car dealer, dealer license, how to get a dealer license, auto dealer license, dealers license

Id: BpB6pa9u5BY

Length: 14min 53sec (893 seconds)

Published: Wed Apr 21 2021