I would like to make some extra cash in the summer by buying cars at auctions, fixing them up, and reselling them for profit. I understand that I need some type of a dealers license in order to attend and purchase cars at auctions, but I am not sure how to obtain one and if it is possible for an individual to own one. Can anyone shed light on how I might achieve getting the proper licenses and how difficult it is to do so? Thanks for the help!
Originally posted 2008-12-22 10:16:45.
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You’ll need to contact the Secretary Of State office for Texas. They will have all of the information on how to obtain a Used Car Dealers license.
I don’t know about Texas but here in Georgia where I live you can’t just become a dealer by paying some license fee. You have to have two licenses. A business license to operate a small business in the state and a separate Used Car dealer license that allows you to buy and sell used cars. In order to qualify for the Used Car license you have to put up a $20K bond. You have to have a physical business address suitable for retail car sales (rent a used car lot) you have to have a business phone number and pay for proper signage and have them displayed at the business address.
In other words it’s not a simple or cheap hobby to do part time. At least not here in GA.
DMV – Auto Sales License
Business License
Tax ID
Commercial place of business
Insurance
Surety Bond.
Its not something you do to make extra cash. Its a lot of money and time to get your license.
You are stepping into very deep water. If you get your license and sell to public, you are taking a tremendous risk. If the brakes fail 23 days later, and the buyer hits a busload of nuns and orphans, you – the dealer – will be held liable as brakes are a safety issue. You have to be a professional in order to buy and sell to the public. We are bonded, licensed, and investigated to prevent exactly waht you are attempting – fly-by-night, part time dealers.