How to Start a Car Lot Business

Before opening a car dealership, be sure this is what you want. It takes time and money, but the effort will pay off if you know what you have to do to make it successful. A degree in business and a love of cars are two prerequisites that will go a long way toward helping assure success.

Things You'll Need

• Building
• Sign
• License
• Insurance

Instructions

Prepare

1. Contact state agencies to determine all needed licenses. Each state has its own specific guidelines.

2. Obtain a federal tax ID number. The IRS requires this for tax purposes, and offers three ways to apply: phone, online, fax and mail..

3. Obtain applications for all state-required licenses. Again, each state has its own requirements.

4. Find a location and obtain the necessary signage. Adhere to your city and state's specifications for its dimensions and other rules. If your sign does not meet code, your application will be denied. Most states require a location before the application process.

5. Fill out all applications thoroughly and attach all necessary documentation. If an application is submitted without all documentation, the state will either send it back or issue a denial.

6. Buy inventory. Obtain this either from private parties, other dealerships or auctions.

7. Open for business. Advertise in local papers and on the radio. If budget permits, also utilize television.

References

• Internal Revenue Service
• The Bond Exchange: DMV Bonds