How do you become a used car dealer?


Quick Answer

To become a used car dealer, obtain used vehicle and business licenses, identify a good location for your office, ensure that adequate starting capital is available, acquire used cars for selling, and repair them as necessary. Advertise the used cars to draw in customers, and help them obtain loans to grow your business quickly.

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Full Answer

Apply with the Secretary of State or Department of Motor Vehicles of your state to obtain a used vehicle license. Check the requirements for the same for your state, and fulfill them. Also, apply for obtaining a business license from the local government.

Select a location that sees a lot of traffic for your office. Buy an empty plot or one with a building for the purpose. Check if the property is zoned for commercial purposes. Ensure that adequate funds are available for buying the property, office supplies and equipment and pre-owned vehicles.

To purchase used cars, check the local car auctions, contact other car dealers in your locality, and advertise in local print media. To sell the used cars, use online listing websites, the print media and word-of-mouth technique to advertise the car models available with you. To attract more customers, help them obtain loans by making the necessary arrangements with lenders and financial institutions.

Enter into a partnership with an auto mechanic to repair the used vehicles. Alternatively, start a garage along with the dealership to earn more money via the business.

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