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Procedures Followed In Getting An Automotive Dealer License

By Alison Wilcox


Operating as an automotive dealer is a financially rewarding business prospect. Most people who engage in this business the world over confess to having transformed their financial situation within a very short duration. Besides the liquidity aspect auto dealers can also enjoy the benefit of buying personal cars at ridiculously low pricing than other citizens in the open market. The tax advantage is also another gain that should weigh into this conversation given the policy of most governments in rewarding high outlay entrepreneurs.For this reason an automotive dealer license can be tempting.

Different States in America are governed differently. The same applying even in the way they regulate the industries within their jurisdiction. Due consideration is going to the States of Florida and California for purposes of this discourse.

In Florida, the kinds of dealership recognized by their statutes include Auction, Wholesale, Retail and Franchising. According to the provisions of the dealership law, anybody or any organization displaying or inviting prospects for three or more cars is considered a dealer. Section 320.27 of the DMV Act clearly stipulates this condition.

The DMV requirements in Florida State are quite rigorous but feasible. They include amongst others a completion of an application form, an approval of business premises, a payment of fees for main localities of the dealership and obtaining of Garage liability insurance. Other obligatory documentation include a lease copy for the yard, a surety bond and a certificate for qualifying as a dealer training seminar. Finally a set of the applicant fingerprints and application fees are also needed.

If a dealer is found to be non-compliant with the above rules, he risked being charged for a second degree misdemeanor under the Florida laws. Depending on the gravity of the crime, civil law can also be brought to bear. The effect of this would be stiffer penalties and harsher jail terms.

The set of rules regulating the certification of dealers in California is quite different from the ones in Florida. To begin with, training in a dealership course is a must to all those interested in this business. The type of dealership will determine the curriculum to be pursued. Upon passing the test, official in the DMV office will need to see proof of business location. The application fees for this process apply as applicable.

California auto dealers in the retail end of it have to grapple with more limitations than their wholesale counterparts. The reason for this is because of the risks they predispose the public to leading to authorities insisting on more investment in insurance and security bonds. On the other hand, only retail dealers can sell to the public.

Upon passing of automotive dealer license exam, potential dealers must avail photos of the main building, office area, display area and reselling permits and a dealer book to the DMV office. A TM8888 business license is also non optional.In case one is interested in the dealership (or related) business, he or he should feel absolutely free to consult with the nearest DMV offices in their localities.Dealership is the way to go in future.




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