Dealer License Scams
State aims to thwart used-car scams
Commission: Car-dealer license interviews needed to ensure laws are followed
Published in the Asbury Park Press
GANNETT STATE BUREAU
The state Motor Vehicle Commission, along with the State Police and Division of Consumer Affairs, weighed in Tuesday on a plan to tighten controls on used-car sales in which scam artists allegedly use legitimate processes to trick customers.
But Ed Smith of Hampton, Hunterdon County, who sells as few as five cars a year, said, “The perception that we are all shysters is a very bigoted comment.”
Among those speaking at the lengthy hearing were dealers, lawyers for dealer groups, lobbyists, state troopers and representatives of the Motor Vehicle Commission.
The commission is trying to change to the current situation, in which a person can easily become a licensed used-car dealer and gain unlimited access to dealers’ license plates by virtually selling cars on the streets or from bars and coffee shops.
The commission has proposed requiring applicants for used-car-dealer licenses to be interviewed to learn if they understand the laws and processes; banning any sales off a dealer’s premises; requiring dealers to keep better records for three years; ending the sale of vehicles without also transferring the title; and setting a minimum for showroom space a dealer must maintain.
Typically, said witnesses, a rogue used-car dealer might secure a car at an auction, slap dealer, or temporary, plates on the car, then hand the keys to a buyer, who is told by the trickster to meet at an address in a week or so to gain the title.
But witnesses said the buyer may find no dealership at that address, setting off a lengthy and costly process for the buyer to try to get the vehicle’s title.
State Police Detective Sgt. William Robb, the auto unit supervisor, told of a run-down building at 330 E. Commerce St. in Bridgeton, Cumberland County, where “dealers” satisfied state regulations to possess a physical address.
They did so by chopping the Bridgeton location into 8-by-6 foot wooden cubicles lacking telephones or any other evidence that commerce could be conducted there, Robb said.
“It was not found to be a place where business is conducted,” said a second State Police detective, Michael Kane, also of the auto unit.
The state troopers said as many as 450 “dealers” had operated out of the Bridgeton building, paying $500 a month rent, but it is a mystery why the situation developed in that South Jersey municipality. There are others in the state, the troopers said.
But Smith argued bad dealers are bringing on overregulation of legitimate, smaller dealers who see their businesses as providing a service.
“Under the guise of protection, they are killing small business,” said Smith, citing the proposal that would mandate that car sales be conducted on a dealer’s lot.
Smith, for example, said he sometimes delivers cars to buyers.
Motor Vehicle Commission spokesman Gordon Deal said honest car dealers are already being squeezed by the practices of others. “You have got legitimate dealers who are getting screwed by these fly-by-nighters,” he said.
Dealer License Manual
“How to Get Your Own Dealer License” Manual
Dealer License Requirements
ALABAMA DEALER LICENSE
Dealers must obtain a Regulatory Permit from the Sales, Use & Business Tax Division. The permit must be presented to the county license issuing official for issuance of a Privilege License, and the Taxpayer Service Center for tag issuance.
Categories of Regulatory Licenses: New Car Dealer, Used Car Dealer, Dismantler, Wholesaler, Rebuilder, Reconditioner.
Dealers must fulfill the following requirements:
b. display a sign designating the place of business
c. describe and insure permanency of the place of business
d. provide display area for one or more vehicles and a place for maintaining books and records.
Motorcycle and trailer dealers are exempt from regulatory permit. Licenses are renewed annually in person or by mail.
Dealer License Fees:
$10.00 per category, plus $45.00
or up to $210.00 for the Privilege License depending upon the city or county of dealership
$225.00 for automotive dismantlers.
ALASKA DEALER LICENSE
Anyone in the business of buying and selling vehicles (acting as a dealer) must be licensed. License must be renewed every two years. Application and proof of bonding required.
Dealer License Fee: $50.00 for original application/renewal
ARIZONA DEALER LICENSE
Dealer License Fees:
Original license and annual fee – $100.00
Branch license – $50.00 per location within county
Filing fee per application – $15.00
Provisional license – $10.00
Background investigation (per individual) – $24.00
ARKANSAS DEALER LICENSE
License issued by the Arkansas Motor Vehicle Commission is required for franchised motor vehicle dealers (buying/selling three or more vehicles in a year).
Dealer License Fee:
$100.00 per year for each dealership
$10.00 per year for each salesperson
Used car dealers must be certified by State Police, display proof of liability insurance, and file a $25,000 surety bond with the State Police. Boat dealers have no license requirements; however, trailer dealers must be certified by local law enforcement officers. If a trailer dealer accepts a motor vehicle as a trade-in, the vehicle must be licensed and titled in the name of the dealership. Trailer dealers are not granted reassignment privileges for motorized vehicles.
CANADA DEALER LICENSE
Start here: The Used Car Dealers Association of Ontario
Ontario’s Motor Vehicle Dealers Act
Dealer License Fee:
COLORADO DEALER LICENSE
All car, truck, motorcycle and trailer dealers must be licensed to conduct business in the State. A license is not required for boat, special mobile equipment and off-road vehicle dealers. Applications must complete an application, submit a financial statement, post bond, pass a written exam, have an approved business location and submit to criminal background investigation. Licenses must be renewed annually; fees are adjusted annually.
CONNECTICUT DEALER LICENSE
New and used vehicle dealers, manufacturers, repairers, wrecker services and junkyards must be licensed. New vehicle dealers must be franchised by a licensed manufacturer. License issuance is subject to initial approval of local authorities. Upon approval, an application is submitted to the Dealers and Repairers Division of the Department of Motor Vehicles. Applications must be renewed biennially.
DELAWARE DEALER LICENSE
Private individual may sell four vehicles per year before being required to become a licensed dealer. All dealers must be licensed by the state by Division of Revenue through the Division of Motor Vehicles. Application must include the franchise agreement. Prior to the issuance of a license all dealer facilities must be inspected by a division representative (no inspection fee).
$100.00 upon application and renewal. Must be paid to the State Division of Revenue.
DISTRICT OF COLUMBIA
Dealers must be licensed to sell vehicles in the District. License is required for new and used vehicle dealers, and a license is required for salesmen. Licenses are issued by the Department of Consumer Regulatory Affairs. An investigation is performed prior to the issuance of dealer and salesmen licenses.
Contact: (202) 442-4400
FLORIDA DEALER LICENSE
Motor vehicle dealers must be licensed. Individual or business selling 3 or more vehicles in one year must have a dealer’s license. Licenses are renewed annually.
Dealer types: Franchise, Independent (Used), Wholesale, Auction, Mobile Home and Recreational Vehicles.
Applicants for a Franchised Dealer License must present a sales/service agreement and appointment letter or letters of intent from the manufacturer or distributor. All dealers must submit fingerprint cards upon initial application for a dealer’s license.
Dealer License Fees:
$39.00 for each fingerprint card
$40.00 for each mobile home or recreational vehicle dealer license application
$75.00 renewal fee for Franchise, Wholesale, Independent and Auction Dealers
$140.00 renewal fee for all MH/RV dealers
GEORGIA DEALER LICENSE
A Dealer License may be required for new vehicle dealers. Issuance is handled by each municipality. Leasing Companies and Independent Dealers who deal in used vehicles must be registered with the Used Car Dealers and Sales Tax Division. Mobile Home Dealers must be registered with the Fire Marshal’s Office. Motorcycle Dealers and Trailer Dealers are not required to be registered.
HAWAII DEALER LICENSE
New and used vehicle dealers must be registered. Registrations are issued by the State of Hawaii, the Department of Commerce and Consumer Affairs, and the Motor Vehicle Industry Licensing Board. Dealers must be franchised to sell new vehicles.
IDAHO DEALER LICENSE
New dealers must submit an application and present the contract from the manufacturer. (See Dealer/Salesman’s license, Exhibit “D”). New Dealer Code ‑ permanent three-digit number. Dealer plates and numbers are transferred upon sale of the dealership. Used Dealer Code ‑ permanent four digit number issued. Motorcycle, ATV, and snowmobile dealer requirements (new and used) are the same as for other dealers. Dealer’s license must be displayed. All applications are investigated.
Dealer License Fees:
$100.00 renewal fee
ILLINOIS DEALER LICENSE
All dealers must be licensed. Dealer establishment must be inspected prior to licensing. New dealers must present a franchise letter and all dealers must obtain a tax number issued by the Department of Revenue.
Used Vehicle Dealer License Fees:
$25.00 for each additional establishment
INDIANA DEALER LICENSE
Vehicle Dealer: Must be licensed. Dealer must have a lot, a building not attached to or part of a residence, a display area for at least ten vehicles, a permanent sign with name and hours displayed, garage liability insurance in prescribed limits, and retail merchant certificate number. All classifications of dealers, except wholesalers, must sell at least twelve vehicles per year. Upon application the dealer must present proof of insurance, a photograph of the place of business, and the franchise agreement (required only for new vehicle dealers upon initial application).
Salvage License: Issued for recyclers, crushers, rebuilders and used parts dealers. Dealer must have three or more inoperable vehicles on the lot. A Salvage License does not grant reassignment privileges. Salvage operators cannot be issued dealer plates unless they meet the required dealer qualifications.
Fee: $ 10.00 annually
Transfer Dealer: Sale of vehicles is incidental to the business. Transfer dealers have restricted dealer plate use.
Fee: $20.00 annually
Wholesaler: Issued for a dealer that sells at least 120 wholesale vehicles per year with no retail sales.
IOWA DEALER LICENSE
Distributors, manufacturers, motor vehicle dealers, mobile home dealers, and travel trailer dealers must obtain a dealer license to conduct business. Licenses are issued by the Office of Vehicle Services, Customer Services Section, on a staggered system; issued for 2, 4 or 6 year periods. All applicants for a dealer license must have a place of business with a telephone installed and listed in the dealer’s name, repair and display facilities and an on& ite inspection.
Dealer License Fees: Dealers, manufacturers, distributors of travel trailers and mobile homes
$70.00 for 2 years
$140.00 for 4 years
$210.00 for 6 years
KANSAS DEALER LICENSE
New and used vehicle dealers must be licensed and issued a dealer number. (Individuals or businesses selling over 5 vehicles in one calendar year must be licensed as a dealer). Manufacturers of vehicles must also be licensed.
Dealer License fees:
$50.00 for dealers
New vehicle dealers require franchise agreement and an inspection of location (s), which must be zoned commercial, before license is issued.
None for the primary location
$ 10.00 per secondary location(s)
Application must be made in person.
Dealers and salespersons are also investigated prior to license issue. Salespersons, distributors and factory representatives must fulfill state examination requirements.
$15.00 for salespersons
$25.00 for distributors and factory representatives
Report of monthly sales activity must be filed.
KENTUCKY DEALER LICENSE
Automobile, truck and motorcycle dealers must be licensed with the state. Trail dealers are not licensed. Dealer must have an established place of business and a business name which identifies them as a motor vehicle dealer.
Annual fee: $100.00
All dealers must have at least one licensed salesperson for each location for which a license was issued. Use tax must be paid for all new vehicles sold.
LOUISIANA DEALER LICENSE
Dealers must be licensed by the State. Upon application, new vehicle dealers must submit the franchise agreement. Used vehicle dealers cannot sell new vehicles. Any person who sells five or more used vehicles in any twelve-month period must be licensed as a used motor vehicle dealer.
Dealer License Fee:
$10.00 for new vehicle dealers
$200.00 for used vehicle dealers
$100.00 for each additional place of business (new and used)
MAINE DEALER LICENSE
A license is required for new and used vehicle dealers. An individual or business selling more than 5 vehicles in a 12-month period, displaying 3 or more vehicles within a 30 day period or buying vehicles for purpose of resale, qualifies as a dealer in Maine. Application is submitted to the Bureau of Motor Vehicles. The application must provide the following information: size and location of the lot; the size of the building, display, office and repair area. Applications must be signed by all parties and witnessed. The building lease must be valid for at least one year.
Dealer License Fees:
$150.00 filing fee and $150.00 licensing fee (both fees required upon application and renewal)
$150.00 annual renewal
MARYLAND DEALER LICENSE
Motor vehicle dealers must be licensed if he has sold more than 5 vehicles during a year. Dealer must have a location approved by an authorized representative of the MVA and must complete an application to be approved by the Business License & Consumer Services Division of the MVA, and must submit a bond in the name of the dealership. Laminated dealer photo license issued; annual renewal by mail is required.
Dealer License Fees:
$500.00 New and Used Dealer
$300.00 for boat trailer dealers and trailers 15 feet or less
30 day apporval time
MASSACHUSETTS DEALER LICENSE
Required for persons principally engaged as dealers (see class listing for specific requirements). Dealers must have a separate business office on the premises, maintain a Used Car Record Book approved by the Registry of Motor Vehicles, and post a sign displaying the type of business. Watercraft dealers must have a franchise letter from the manufacturer, a sign indicating the type of business and a separate place of business. Dealer Licenses are issued from the local City Hall; the Boston Police Department issues licenses for dealers based in the city of Boston.
Licenses are issued for the following dealer classes:
Class 11 – Used vehicle dealer (business license required).
Class III – Salvage parts/Junk (business license required).
Owner/Contractor – Must have ten vehicles (one of which is special mobile equipment &; SME), and garage to work in (business license required). Owner/contractor plates may be issued to: government agencies for public safety uses; persons engaged in leasing storage or mobile office trailers; persons engaged renting or leasing vehicles or trailers to the public (fleets of 20 or more)
MICHIGAN DEALER LICENSE
An individual acquiring one or more vehicles with the intent of resale is considered a dealer and must be licensed. All dealers must include classification(s) on the application for annual license.
Class B – Used Vehicle Dealer
Class C – Used Vehicle Parts Dealer
Class W – Broker
Class E – Distressed Vehicle Transporter
Class F – Vehicle Scrap Metal Processor
Class G – Vehicle Salvage Pool Operator
Class H – Foreign Vehicle Salvage Dealer
Class R – Automotive Recycler
MINNESOTA DEALER LICENSE
All dealers must be licensed. New and used vehicle dealer licenses must have a permanently enclosed commercial building on a permanent foundation, office space for records. Personal franchise agreement and means for repairing vehicles required for new dealers only. Used vehicle dealers must have a person to answer the telephone or an answering machine. Lessors and wholesale dealers must have an office, records and a person to answer the telephone or an answering service. Auctioneer requirements are the same as for new or used dealers, but may be based outside the state. A site inspection is required for all dealers prior to the approval of a dealer license. Dealer classes include new, used and broker, lessor, parts, scrap metal, wholesale, leasing, and auctioning. Boat, snowmobile and motorized bicycle dealers are required to be licensed.
Dealer License Fees:
$103.50 if application is made after July 1
$13.50 for boat, snowmobile, and motorized bicycle dealers
MISSISSIPPI DEALER LICENSE
Applicants must have a place of business, an office, and must display a sign, and must file a bond with the application. An eleven digit designated agent number is assigned to each dealer. The number is carried on any issued title and in the dealer record.
Dealer License Fees: (initial and renewal)
$75.00 trailer dealers
$50.00 motorcycle dealers
MISSOURI DEALER LICENSE
New, used, boat, wholesale, manufacturers, motorcycle and trailer dealers are required to be licensed if they sell six or more vehicles/boats per year. Application, a place of business, criminal record check and registration fee must be submitted. Statement of insurance certification required. License expires December 31 annually.
Dealer License Fees:
$150.00 motor vehicle dealers
$80.00 marine dealers
Fees are prorated on date of application.
Body shop/rebuilder, used parts dealer, salvage/dismantler or mobile scrap processor must register and have a bonafide place of business. Only salvage dealers and dismantlers can purchase vehicles from a salvage pool.
Fee: $65.00 per designation
Expiration is June 30 annually.
Out of state salvage dealers must register with the State.
MONTANA DEALER LICENSE
To apply for dealer license, franchised dealers must submit a copy of the franchise agreement from the manufacturer. All other dealers must submit only license application. Applications are investigated prior to license issuance.
Dealer License Fees: New or used vehicle dealer
$30.00 with $30.00 annual renewal.
For applications after July 1, fees are reduced by half.
Call Motor Vehicles Division: (406) 444-4536
NEBRASKA DEALER LICENSE
Dealer License Fee: $160.00 annually
NEW HAMPSHIRE DEALER LICENSE
Dealers must be licensed with the state. Prior to license issuance, applicants are investigated by an agency Inspector, and must also be approved by local authorities. License renewal is March 31, annually.
Dealer License Fee: $125.00
Dealer classifications include New, Used, Junk, Repair, Transporter, Utility, Motorcycle and Wholesaler.
NEW JERSEY DEALER LICENSE
All new and used car dealers, leasing companies and Auto Body Repair facilities must be licensed. Applications for license are submitted to the Dealer’s Unit, Business License Compliance Bureau. Dealer plates and registrations are available only from Trenton. New car dealers must be franchised to sell new cars. A special license is required for used car dealers. Application packages include the application form, affidavit, signature card, security check authorization waiver form, and supplemental application form.
Dealer License Fees:
$100.00 for automobile dealers
$350.00 for two&;year Auto Body Repair license fee
NEW MEXICO DEALER LICENSE
A dealer license is required for wholesalers, manufacturers, wreckers, distributors, new vehicle dealers, used vehicle dealers, house trailer and motorcycle dealers. An established place of business must be maintained and zoning and fencing requirements must be met. All dealers must have a display area except wholesaler. On site inspection is conducted prior to license issuance.
Dealer License Fee: $50.00 upon application and renewal
Dealer licenses are renewed December 31 each year.
Call: MOtor Vehicle Division 1-888-683-4636
NEW YORK DEALER LICENSE
Dealer License Fees: original registration
$325.00 for two years (includes $25.00 application fee)
$300.00 for renewal
A Dealer Bond is required.
Registrations are for a two-year period only.
Dealers purchase MV-50 Certificates of Sale from the Department.
Nevada Licensing Requirements
NORTH CAROLINA DEALER LICENSE
New dealers must be licensed. Application requires inspection approving established place of business.
Dealer License Fees:
Dealer Certificate $50.00
Salesman License $10.00
Dealers selling trailers or semi-trailers less than 700 lbs. and not carrying more than 1500 lbs. are exempt from dealer requirements.
NORTH DAKOTA DEALER LICENSE
Dealer License Fees:
$35.00 for mobile home
$25.00 for motorcycle dealers
$10.00 for ATV dealers
$20.00 for snowmobile dealers
$20.00 for trailer dealers
OHIO DEALER LICENSE
New dealer must submit license application, statement(s) of contract from the manufacturer(s), personal credit report, police report, photographs of the establishment and financial statement. All dealer locations are physically inspected. Card size salesman’s license issued.
OKLAHOMA DEALER LICENSE
Dealer License Fees:
$200.00 initial application
$60.00 annual renewal
Used, Wholesale, Salvage and New/Used Manufactured Home Dealers: Must be licensed with the Used Motor Vehicle and Parts Commission.
Dealer License Fees:
$200.00 initial application
$100.00 annual renewal
Used dealers and New/Used Manufactured home dealers must have a building, lot, sign and lavatory facilities. Salvage dealers must have a telephone, lot and sign. Vehicles must be out and on site (fenced). Wholesale dealers must have an office.
Watercraft Dealers: Must be licensed with the Oklahoma Tax Commission.
$200.00 plus $10.00 per dealer franchise agreement
Renewal – $100.00 plus $10.00 per each dealer franchise agreement.
New/Used Trailer Dealers: Must be licensed with the Oklahoma Tax Commission.
Fee: $15.00 (includes one dealer license plate) for each type of dealer
OREGON DEALER LICENSE
Dealers must be licensed by the state.
Dealer License Fees:
$329.00 for three year registration
$327.00 for 3-year renewal (includes plate).
Dealer plates are issued to be used for demonstration and delivery purposes. Personal use is also permitted.
PENNSYLVANIA DEALER LICENSE
Application for license must indicate type of license for which the application is being made. License must be renewed annually. Each approved dealer is assigned an eight (8) digit dealer identification number (DIN). The first two numbers correspond to the category of vehicle the dealer is licensed to sell.
RHODE ISLAND DEALER LICENSE
Conact: Motor Vehicles 401-588-3020
SOUTH CAROLINA DEALER LICENSE
State license is required for all new and used car dealers and camper/motorcycle dealers.
Dealer License Fee: $50.00
Issued for demonstration and delivery use only. New car dealers are not required to be franchised; used car dealers may sell new cars.
SOUTH DAKOTA DEALER LICENSE
An individual in the business of selling or advertising sale of vehicles is considered a dealer and must be licensed. Dealer application requirements and renewal applications are filed through the County Treasurer. Investigation of the applicant and the described place of business are conducted by the state dealer inspector.
The place of business must be:
b) in accordance with building codes and zoning laws
c) location where required books and records are kept
d) the principal business at the location (cannot be the residence of the applicant).
Dealer License Fees: new/used vehicle dealer
$250.00 dealer ($100.00 renewal)
mobile home dealer $250.00 ($75.00 renewal)
motorcycle dealer $200.00 ($75.00 renewal)
snowmobile dealer $100.00 ($50.00 renewal)
trailer dealer $75.00 ($50.00 renewal)
TENNESSEE DEALER LICENSE
When an individual sells more than 5 vehicles during a calendar year, he is considered in business and must be licensed by the state as a dealer.
When applying for license, new vehicle dealers must submit a franchise agreement.
New Vehicle Dealer License Fee: $100.00 for each branch upon application/renewal.
Used vehicle dealers may not sell new vehicles.
Used Vehicle Dealer License Fee: $100.00 upon application/renewal
A facility inspection is conducted for all dealers prior to license issuance.
TEXAS DEALER LICENSE
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Used Car Dealer License Fees:
$500.00 for the first year
UTAH DEALER LICENSE
ler is an individual selling or exchanging three or more new or used motor vehicles within a 12-month period. All applicants are investigated by the Motor Vehicle Enforcement Division. Application Form TC ‑ 301 must be completed.
Dealer License Fees:
New Vehicle $125.00
Used Vehicle $125.00
VERMONT DEALER LICENSE
Dealers selling 12 or more cars in a year must be licensed. Dealers must have real estate value of not less than $10,000. License renewals are on a staggered basis. A Dealer Audit is conducted by State Inspectors for approval of license renewal.
Dealer License Fee: $275.00 for new and used automobile dealers (5 plates)
VIRGINIA DEALER LICENSE
Certification of Qualification required: each new dealer&;operator and salesperson must pass written examination ($25.00 fee). If applicant is a dealer in new vehicles with factory warranties, a copy of service agreement with manufacturer or distributor is required. The dealer sales office must be inspected by a DMV investigator prior to issuance. Each dealer is assigned a permanent dealer code with up to five digits. Licenses are staggered, fees are prorated, each plate must be insured and all licenses expire on the last day of the designated month. Preprinted renewal forms are mailed to licensed dealers for renewal purposes.
Dealer License Fee:
$100.00 upon application and renewal of dealer license
$10.00 for each salesman license
Additional fee for Recovery Fund
New dealership must pay $250.00 for three consecutive years without a bond or fund claim being filed.
$ 10.00 renewal for each salesperson.
Multi-year licensing is optional
Fee: $200.00 for dealership
$20.00 each sales person
WASHINGTON DEALER LICENSE
All dealers must be licensed.
Washington has three dealer classifications: Motor Vehicle, Mobile Home/Travel Trailer, and Miscellaneous dealers.
Dealer License Fee: $500.00 original dealer licenses
$250.00 renewal (Staggered annual renewal)
WEST VIRGINIA DEALER LICENSE
All dealers must be licensed. If an individual sells five or more vehicles in a calendar year, license is required. Dealer licenses are renewed annually on June 30. New Car Dealers must provide at time of application, proof of established place of business, display area, franchise agreement, and room for repairs. An on-site inspection of dealer facilities is conducted prior to the issuance of a dealer license. Periodic inspections of dealer facilities are also conducted.
New Car Dealer License Fee: $100.00 upon application and renewal.
Used Car Dealer requirements are the same as for new car dealers, with the exception of a franchise agreement where posted hours of operation and outside display area are required.
Used Car Dealer Fee: $100.00 upon application and renewal.
WISCONSIN DEALER LICENSE
Manufacturers, distributors, dealers and mobile home dealers are required to obtain business license (not required for trailer dealers). Individuals buying and selling more than five vehicles are required to obtain a dealer’s license. Issued for 2-year period based on date of issuance.
Dealer License Fee: $40.00 – $100.00 depending on type of vehicle sold.
Dealers are required to file $25,000 bond. Trailer plates issued to trailer dealers for the transportation of trailers exceeding 3,000 lbs.
WYOMING DEALER LICENSE
An Application for a Wyoming Dealer License must be submitted each year. All applications are investigated prior to license issuance.
Dealer License Fee:
$25.00 or $ 100.00 upon application and annual renewal
(fee depends on number of retail sales)
Watercraft dealers require only a Sales/Use Tax license, which is issued by the Wyoming Department of Revenue.
What is a Curbstoner?
How to avoid curbstoners
Unlicensed Dealers Commonly Known as “Curbstoners”
And What You Should Know About Buying a Used Vehicle
What is Curbstoning?
Curbstoning is an unlicensed vehicle deal. A person who sells vehicles on the street or “at the curb” instead of at a dealership location could be “curbstoning.’ Curbstoners may also advertise vehicles in the newspaper classified section.
What are the Risks?
Buying from a curbstoner increases your risk of being unable to transfer a title. A curbstoned sale may masquerade as a “steal” but could actually be a previously wrecked vehicle, one with a “rolled back” odometer, or even a stolen vehicle. Curbstoners do not comply with state or federal laws and any dealings with them are not protected.
How to Spot a Possible Curbstoner?
Not everyone is out to break the law, but if your “great deal” is made with a vast majority of these conditions, look out! There are several “clues” you can look for:
- The license plates are out-of-state, issued temporarily, are dealer tags, or missing altogether.
- The seller admits he/she is a dealer but says it’s a personal vehicle.
- The seller insists on a cash payment.
- The vehicle’s title is not in the seller’s name.
- The seller offers to do the tag and title paperwork.
- The title is recently issued, or the seller refuses to show you the title.
- The seller gives only a pager or cell phone number.
- The same phone number is listed for multiple vehicles in the newspaper or outdoor location.
- The vehicles are for sale by the roadside, in vacant lots, at shopping centers, or in driveways.
- The seller wants to meet at a different location other than his or her residence.
What to Ask?
When you take a look at the vehicle, consider asking these questions of the seller:
Are you the dealer? Why are you selling the car?
Remember, with the exception of private sales, anyone in the business of selling or buying vehicles in the State of Maryland must be licensed. Ask to see the dealer’s license.
Are you the owner of the vehicle? Is the vehicle titled in your name?
The seller of the vehicle must be the owner or co-owner (with the other owner’s permission). Check to see if the names on the title and seller’s driver’s license match. Does the vehicle’s identification number, make, model and year match what is listed on the title?
How long have you owned the vehicle? Did you buy it new?
These questions are important for you to determine if the vehicle has been well taken care of, or if you are looking at a vehicle with a ”shady past!” You can check into the history of the vehicle by researching the Vehicle Identification Number (VIN) on-line under “vehicle history.” A history of auto auctions and/or sales across multiple states may indicate problems. Please note: A fee is charged for each vehicle history report.
What is the mileage now and what was it when you bought the vehicle?
Check the mileage indicated on the title against the odometer. It is important to note that vehicles normally average an accumulation between 12 and 15 thousand miles each year.
You might also want to check the odometer against the mileage of an oil change or other maintenance stickers that can be found on the doorframe, in the glovebox, or under the hood. An odometer with numbers that are misaligned could indicate a possible “rollback.” If the odometer numbers “jiggle” when you strike the dashboard, that is another indication that someone may have tampered with them.
Has there been any major work performed on the vehicle? Has the car had body repairs? Has the vehicle ever had a rust problem or been repainted? If the seller answers yes to any of these questions, ask for any receipts for the work performed on the vehicle.
If possible, have a qualified mechanic thoroughly check the vehicle. Look for paint color that is not evenly spread on the vehicle, check its texture, and whether or not there are any misaligned parts on the body of the vehicle. Check to see if the doors, hood, and trunk open and shut easily. You will want to check the way the tires are worn. If the tires show they have uneven wear and tear on them, this may indicate abuse, poor wheel alignment, or damaged front-end components. You should also check the horn, the radio, the heater, the wipers, and the defoggers. Try the windows and seatbelts. Test the headlights, the taillights, the flashers, the back-up lights, the brake lights, the turn signals, and the parking lights. Check under the hood, and examine for worn hoses, battery leaks, dirty dipstick oil, or dark or burnt smelling transmission fluid.
How has the car been driven? For example, did the seller take the car around town or was it taken on a majority of long trips?
Ask for service and warranty records. You will want to check for excessive brake pedal wear, which would be consistent with high mileage. To check the brakes, ask if you can test drive the vehicle. While you are driving 30 to 40 mph with no one behind you, apply the brakes 3 or 4 times. A consistent pull to the left or to the right will indicate a problem.
What are the vehicle’s best features? What would I need to do to put the vehicle in top shape?
A seller who really has owned the vehicle will be able to answer these questions easily.
Have you had the vehicle inspected!
In most states if you sell 3 or more cars within a 12 month period, you may be considered an unlicensed dealer. This is punishable by a hefty fine ($5000) or up to 1 year in jail in some cases.
Curbstoners, unlike dealers, don’t play my any set of rules. Dealers are suppose to make a reasonable guarantee the cars they sell have clear titles and are safe for the road.
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You will never worry about people wanting to test drive your car on your weekends, strangers wanting to come to your home to see the car, 16 year olds calling and wasting your time, and the other “non serious” buyers. There is a way to deal with only BUYERS and avoid LOOKERS.
PLUS, get this, you can still keep your full time job!
I call it the “eBay Model.” It is covered in depth at the Auto Dealer Academy as a Bonus in Module 5.
With over 61 million active members, eBay is quickly becoming a powerhouse for automotive sales. The biggest used-car lot in the world is right there on your computer, courtesy of eBay. There were nearly 300,000 vehicles sold on eBay last year. Dealers account for about half of eBay Motors’ listings, individual sellers the rest.
DEALERS: Imagine turning your inventory every 7 days! Select a 7 day auction. 70%+ of all cars are sold in the 7 day auction. Think about it! Whats the #1 rule in car sales? You know it “Inventory Turn!”. Ebay is a great way to increase your turn. More and more dealerships have a “ebay manager” which is a separate position from the “internet manager”.
Normally dealers have to spend $400 – $500 in marketing money to get ONE PERSON to walk into a showroom. For that $40 listing fee, they get an average of EIGHT people bidding and perhaps hundreds of lookers over a 7 – 10 day auction period. Additionally, dealers don’t have to spend hours haggling their way to a profit, and they can turn over inventory faster.
And consumers report being twice as satisfied with their eBay experience than the traditional auto purchase at a dealership. Part of the higher satisfaction is because the purchase is out of desire – not need.
There are people making a lot of money selling cars on eBay but, believe me, eBay does have its faults like shill bidding, hidden IDs, no reserve auctions ending auctions early, vehicle misrepresentation, and more. We will discuss problems a little later. Knowing about these problems will help you avoid them!
Seventy percent of all the cars sold are “everyday cars”. Although highline cars bring the BEST profit potential. People will fly in from all over the country to buy your car or the BUYER can arrange a transportation service.
For dealers, Ebay is a simple proposition: a cheap way to reach throngs of buyers.
eBay is very reasonably priced for sellers also. Heck, ebay won’t even charge you if you don’t get bids or the bidding does not reach your reserve price! Try placing a classified in your large town newspaper for less!
You can even set the minimum you will sell the car for and wait for the buyers to start bidding. You can also put a “Buy it Now” at your dream price so someone could snag the car if they really wanted it.
On the Web, you are what your customers perceive.
Presentation does matter. You only have one chance to make the first impression – and it needs to be a good one. Your listing and feedback is critical.
Why not give it a shot and see how much fun it is. Selling cars on eBay is not magic. It is actually very simple and easy. Just remember that it will take a little time for you to see what cars work best for you.
There are some very simple techniques you will learn to help you sell cars for profit on eBay. Since this is an emerging technology, these techniques can not be found anywhere.
I know for a fact you can make $500 – $2500 per car on eBay. The key is to BUY THE RIGHT CAR FOR THE RIGHT MONEY. Its never about where or how you sell the car that determines your profit, its how much you pay for which car! No matter if the eBay marketplace or your home town – you have to study the marketplace and buy what sells!
Know this: Better ads do bring more money! Learn why YOUR ebay ads should look like mine.
I have actually bought the car off eBay and resold it on eBay for a profit! Same car + better ad = more money!
Heck, I made a $1088 profit on this deal alone. This is not brain surgery guys! Heck, I even missed out on an additional $700 in profit that I will discuss during your training at the auto dealer academy.
Go ahead, make a decision to move forward with your goals, keep learning, and buy nice cars & trucks to resale for profit.
I am here to help you learn the business. You can do this business. I will teach you what you need to know to make it happen!
Women in the Car Business
I have seen women rock the auto world. In all honesty, and I mean NO offense, just the fact your a WOMAN will get you in the door faster than anything else.
Historically, cars has been mainly a MAN’S business AND because of this fact, its easier than you would ever think for a woman to make a ton of money in this business. Who would a buyer rather buy from, a man or woman, when all he ever sees are other men?
Here are a few example just off the top of my head:
- One lady friend of mine, Lori, is a wholesaler in Florida. Let me tell you, she makes a ton of money and she loves it. She gets in the auction lanes and buys those cars hands over fists. Then she gets on the phone and sells them to local dealers OVER THE PHONE on the drive (or flight) back home! She makes a couple hundred bucks a car and she moves about 10 cars a week. Not too bad working a few days a week. She would tell you that initially the men will try and take advantage of you but once they know you will not put up with their BS, you are in. (but this is true for men as well!)
- I know another lady, Christine, in Houston who wholesales high line (BMWs, Mercedes, Porsches,…) cars and makes about $200,000+ a year! No kidding. She taught her husband the business and now he is slowing catching up to her!
- Another lady, Rebecca, from Utah recently purchased my study course and plans to utilize the “Ebay Model” with the help of her sister. She had recently bought a car off eBay and the wholesaler told her that he made $1500 off her Volvo wagon. She is a psychologist by trade so she knew how to get him to talk! (laugh) She KNOWS she can do this car business. Its NOT hard. I know she will do it!
- A stay at home mom, Patricia, in Maryland is learning to be an auto broker so she can stay at home with her child and still earn a darn good income.
“Most auto brokers make about $30,000 this first year, and $60,000 their second, and by your third year you hit the gravy train and make in the six figures ALL from referrals, innovative marketing, and simply because people would perfer to buy from women!”
- A retired lady in Alabama, Melba, just got her dealers license and wants to buy and sell at her own leisure. She wants to be able to turn the business ON and OFF, like a faucet, whenever she wants. She loves the fact she can go to the auction, spend a few hours, buy a couple cars, and sit at home while she sells both of them in the next 30 days to pocket about $3000 in profit for the month. Not a bad retirement plan!
- Another lady, Millie, I know in Dallas uses her dealers license to live the lifestyle she loves. Her lifestyle is like this: She buys about 10 cars at the area auctions over the course of a few weeks, maybe less. She then places ads in the newspaper and waits to sell them all. Once she sells them (averaging about $1300 per car), she and her husband takes a month off and travels! Then she returns home and does it again. She loves it.Ladies, this business is for you! Especially if you would like to stay at home with kids and make a great living. Don’t let fear hold you back. Get educated and start doing it. You have SO many things in your favor – trust me. You don’t need to know a thing about cars right now – you CAN and WILL learn that.Let me teach you!Success!!George