[Author Prev][Author Next][Thread Prev][Thread Next][Author Index][Thread Index]

Re: How Do I Become A Car Dealer?(a word of caution)

A word of caution. If you intend to go to auctions such as Manheim or one of
the 63 auctions they own around the country(USA), be advised that the auction
is decidedly UNexcited about private parties being on the auction
grounds.This is true of all dealer only.At some, one must show an auction ID
in order to gain access to the premisis.If a dealer is found to have brought
his customer to the auction to pick out his car( buying sight unseen from
afar is risky), that dealer may well be ejected from the auction and his
privilges to buy there revoked. 
The reason is that a retail customer at the auction block upsets the
wholesale bidding process because he is will to pay more than a dealer who is
going to transport the vehicle home, prep it, inspect it , guarantee it, prep
it again after its been vandalized, and generally be married to it for a
period of time. 
It varies from state to state, but all are similar. Basically the laws
intended to protect the consumer,ie a commitment by the dealer to be a
legitimate business. In Vermont one must be able to put 5 full sized cars
inside your building with at least a 12 month lease or owned by yourself),
have regular business hours, bonded for $75,000, and sell at least 12 cars
per a year. The idea is that if you go to this much trouble to be there you
won't sell half a dosen rebuilt wrecks as OK cars and then depart for points
In Maine and NY, I think they don't have the building requirement, but
certainly the others. In some states such as PA, a dealer has to re-title
each car in that dealerships name he can sell it. This could slow down the
turnover process  immensely.
Hope this helps,
DF(Dave Flagg)
So Burlington, VT