How much is a car dealer license?
I own an empty lot and have been thinking about using it to buy and sell used cars for extra income. However, I don’t want to invest a lot of money on a weekend gig. How much is a car dealer license?
Using your empty lot to sell used cars could provide you with a generous revenue stream, but the cost of a car dealer license can vary significantly based on your state.
Before you can even apply for your dealer license, you will likely need the following:
- Business license that typically costs anywhere from $25 to $125.
- Surety bond to protect your clients that can cost anywhere from $800 to $2,000 annually.
- Certificate of completion for an auto dealer pre-licensing course that typically costs $60 to $150 and requires four to 16 hours of class time.
- City-approved place of business, which may involve paying a zoning or other applicable fee.
The above steps are standard in most states, but check your local and state guidelines to ensure you meet all the pre-licensing requirements. Once you have everything in order, complete and submit your application for an auto dealer license. The application fee typically ranges from $175 to $700.
If you’re only interested in selling a few cars a year, you may have other alternatives that don’t require a license. Ask your DMV or state directly to make sure.
If you happen to find a deal on a vehicle for personal use, consider using Jerry to purchase car insurance for the vehicle.
Jerry is an insurance comparison app that shops for low prices with over 50 different insurance companies. You can get quotes in seconds, make changes at any time, and if you ever have any questions, text an agent for a quick answer!
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