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Anyone pursued a car dealer/dismantler license?

funknut

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I’m interested to get access to dealer auctions without going through a broker and need some sort of license, either car dealer or dismantler. Going through the documents, at least here in Ohio, to get either a dealer or dismantler license you have to have a building and yard, properly zoned, etc., etc. Not interested in going through all that.

Has anyone else figured this out? Does anyone know of an easier way to get access to these auctions? I'm assuming 'make friends with a dealer' will be one way, but I'm hoping to figure this out without being dependent on someone else.
 
In WI I think you have to possess a dealer's license. I bought cars at auctions twice getting in with friends who were dealers. They had to make the deal though while I played as their assistant. Somewhere heard that if one buys and sells a certain number of cars within a span of time it can be a red flag with the state...not sure. Your dealer friends I'd reckon would have some good advice and to-do's on how to enter into this field?
 
Each state has different requirements. In Hi to be a dealer you can sell under 5 or over 6 a year for a different type of Lic that require different insurance requirements. The Dismantler scrap is a different lic here too and not tied to the dealer lic.
 
If you look up dealer requirements in OH, you will probably get quite discouraged.
You need a bond for 200k I think, you must have a lot with a building, business sign, fingerprints, background check etc..
It really discourages the part time seller .
If there's another way I d love to hear it.
 
I Know some dealers will make signs and use the same building for multiple dealers. But the ones I know that did this were very well connected people.
 
If you look up dealer requirements in OH, you will probably get quite discouraged.
You need a bond for 200k I think, you must have a lot with a building, business sign, fingerprints, background check etc..
It really discourages the part time seller .
If there's another way I d love to hear it.

Yes, it's a pretty steep requirement, even for the dismantler license, here in OH.

I'm checking with my car guy friends here locally as well, will let you know what I find out!
 
yes and not only will you have to jump thru a Bunch of hoops,but the property you use must be Zoned properly or they can come shut you down no matter What license you have from the state.
......2 Years after buying my current property,they shut me down,knowing full well what i was doing and that i had received a green light from the town and code guy.
i havent been able to use this property for much more than transitions to another yard where we dismantle.
be Careful,dont invest everything into a disaster,like i did.
 
My guess is that any savings you realize from buying cars at auction will be more than compensated for by the overhead of maintaining that business license...unless you are actively pursuing making a profit in that business.

"They" have figured out how much to tax and fee you, so that you can afford it, but it is a moderate percentage of your potential income from the business in question.

In FL, the county sends out annual "profit and loss" questionnaires to business that they tax. They ask me everything from how many square feet are un-rented, to what is the monthly charge per unit, to how much cash I have in reserve. You better be pretty close with your answers, too.
 
Since were talking about a business, and not your personal residence status and taxes, why don’t you see what the requirements are for having the license in question in PA, WV, IN, or Kentucky. Just a thought, but there is nothing stopping a dealer in any of those state attending an auction in in your state. In heavy equipment auctions, they come from all over.

Just a thought.
 
yes and not only will you have to jump thru a Bunch of hoops,but the property you use must be Zoned properly or they can come shut you down no matter What license you have from the state.
......2 Years after buying my current property,they shut me down,knowing full well what i was doing and that i had received a green light from the town and code guy.
i havent been able to use this property for much more than transitions to another yard where we dismantle.
be Careful,dont invest everything into a disaster,like i did.

I'm sorry to hear about this. My Dad went through something similar years back, but in a different industry. Jumped through all the hoops to make sure everything was legit, worked closely with the county auditor's office and everything. 18 months in, new code guy comes in, discovers a bunch of 'findings' and tried to yank his license. Ended up having to take it to court to clear everything up. Cost a fortune and set his business back at least a few years.
 
We have had a used Dealer Lic since the 80s, everything posted above is pretty much on the money.
I will add here in Ia, you have to post your hrs of operation and provide a restroom.
If on a normal year you can not move 30 cars it is not worth the start up.
Now the market is nothing close to normal any autos worth a second look are bringing over retail at the auctions.
The buy here pay here lots will pay retail at the sale and make their profit on the financing end.
It's a tuff game right now.
 
I'm sorry to hear about this. My Dad went through something similar years back, but in a different industry. Jumped through all the hoops to make sure everything was legit, worked closely with the county auditor's office and everything. 18 months in, new code guy comes in, discovers a bunch of 'findings' and tried to yank his license. Ended up having to take it to court to clear everything up. Cost a fortune and set his business back at least a few years.

Government workers, little pis ants who " have the power"... All of them swishy kings in school
 
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