How to Become a Car Dealership Owner
The owner of a car dealership is responsible for obtaining vehicles, advertising the business and hiring new employees. Becoming a dealership owner is a complicated process that varies by state, but many things are constant. You must complete the application and license forms from both the DMV and the Department of Labor. Only after these applications are submitted and approved can you open up shop.
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Instructions
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Contact the Department of Motor Vehicles (DMV) in your area and inquire about the requirements to owning and operating a car dealership. The requirements vary from state to state, but most necessitate that the applicant attend a preparation class or series of classes, where the applicant learns the information he needs to run his business. Take the dealer license test in your area and achieve a passing grade.
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Check the zoning of your area and also submit the appropriate forms and letters to show that your area is zoned for commercial and retail businesses. Some dealers have run into problems because they failed to check this requirement before launching their businesses.
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Complete the application to own a car dealership and submit it to the DMV. Applicants are also required to pass an inspection of their dealership premises and send the DMV pictures of their business. The DMV will send out a representative to check out your location and ensure that things are running smoothly.
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Ensure that you've completed all licenses and submitted all the proper files and applications. If the state requires a background check, which many now require, complete and pass that as well. The DMV will tell you if you're missing anything, but you may need to contact them first in order to find out.
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Apply for both a dealer license and salesman's license from the Department of Labor in your area. Once you are approved, you'll receive your temporary license, which allows you to use dealer plates on all of your purchased vehicles. Request a tax identification number to set yourself up as a car dealer and begin buying vehicles for your lot.
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Tips & Warnings
In many cases it's much easier to work with the Independent Automobile Dealers Association in your area. They can guide you through the process of becoming the owner of a car dealership, help you complete the forms and ensure that you complete everything correctly.
Don't even attempt to launch this type of career without proper funding. You'll need money on hand for rent, costs, overhead, purchasing cars and advertising, to name only a few things.
