How to Become a Wholesale Car Dealer
In this day and age, having a car is no longer fancy. Between 2017 September and 2018 September, 17,550,000 vehicles were sold in the US only. Industry leaders, such as Ford, Toyota and Audi, continue to experience record sales. Toyota, for example, sold more than 178,500 cars in the United States on September 2018. Wholesale cars and dealers continue to evolve year after year. If you are thinking about starting your own business in this industry, check the legal requirements for selling a wholesale car in your country and get a license.
Wholesale cars sell vehicles only to other car dealers, not for the general public. Their income depends on the number of sales and other factors, such as the brands provided and whether they sell new or used cars. The average salary of a car dealership is about $73,000 per year.
As a car wholesale dealer, you can buy vehicles from other dealers and auctions. In general, those who work in this industry buy and sell new, off-rent or used cars. Sometimes, they act as brokers between two dealers without properly storing or displaying vehicles. For example, wholesale cars can sell used vehicles to dealers such as Richard Catena Auto, a company located in Teterboro, NJ. R Catena will display the cars on the website and in the store so that customers can buy them individually. Wholesale car dealers can also buy used vehicles from Richard Catena Auto and then sell them to other dealers.
Get your car Wholesalers license
Once you have decided to start a wholesale car dealer, check with your state Department of Motor Vehicles and get a license. Each country has different regulations regarding this business model. Arizona, for example, provides two types of wholesale dealer licenses: Wholesale dealers and wholesale auction dealers. Wholesale dealers are allowed to operate from their home stay and may sell only to other licensed dealers. Wholesale Auction dealers can not buy, sell or have the car they auction; They can only make wholesale transactions.
For example, to obtain a license in Arizona, access the DMV website of the state and fill out the forms available online. Send a fingerprint card with your app. Cards can be obtained from local law enforcement agencies. Next, purchase an Auto bond dealer and send it along with your application by postal mail to the DMV department in Phoenix, Arizona, for any applicable fees.
Find a location
Once you get a license, rent or buy space for your car dealership. Depending on your location, you may be able to register your home residence as your business place. Some countries need wholesale cars to meet certain criteria regarding vehicle storage, so check with your local zoning authority to make sure you are compliant.
Buy the right Stocks
Most wholesale dealers buy vehicles in auctions. Go online and search for auctions in your area or close to. You may be able to place bids over the Internet without needing to visit a physical location. Before you start, make sure you have a good grasp of the market so you can get a fair price.
Promote your Business
Connect with local dealers and let them know about your services. Consider setting up your website to promote your business and showing your inventory. Attend an event where you can meet other dealers. Place your online advertisements and enroll in industry-related business directories to gain exposure for your wholesale car dealers.