The used car dealership industry is worth more than $123 billion and enjoys a lucrative market situation.
This business is perfect for those interested in selling cars without buying a large auto manufacturer franchise.
Most used car dealerships are owned by independent individuals, and they stock various vehicle makes, models, prices, and conditions.
The last half of the decade saw the industry having steady sales, which can be attributed to a more robust economy, decreased gas prices, and higher consumer demand. Therefore, now may be the best time to start an auto dealership in Los Angeles.
Put Together A Solid Business Plan:
Having a clear plan can help you make achievable goals for the business. Keep it brief but ensure that it covers everything from your executive summary to your plan to acquire customers.
Submit Your Application For A California Car Dealer License:
Car dealerships need to apply for car dealer licenses before they can even start operating. As the owner, you’ll need to apply for either a new car dealer license or a used car dealer license, depending on whether you want to sell both new and used cars or used cars only.
Before you fill these forms, inspect the California DMV’s New Car Dealer Application Checklist to understand the different obligations that apply to you.
To save time, you can find the California DMV packet relevant to your specific license from their website.
Pay The Process Fees:
There are a number of fees to be paid to process and approve your applications: auto broker endorsement, dealer plate, motorcycle plate, new motor vehicle board, family support program, and other relevant expenses.
Participate In The Dealer Education Program:
The Dealer Education Program is a requirement for getting your license as a used car or wholesale-only dealer.
Once you complete the program and take the written examination, you’ll be given a completion certificate.
Under Section 11704 of the California Vehicle Code, all used car and wholesale car dealers are obligated to pass the Used Dealer written test held at the California DMV.
Apply For A California Auto Dealer Bond:
All car dealers in California are obligated to apply for a surety bond to obtain their official license from the DMV.
Auto dealer bonds provide a financial guarantee by the applicant and gives surety to the California DMV. These bonds cover violations or fraud if the principal is unable to pay for any reason.
To obtain a used car dealer bond in Los Angeles, all you have to do is get in touch with the experts at SuretyEZ.
Our simple application process allows you to obtain the necessary auto dealer bonds quickly. Visit our website to learn more or apply for a bond here.