Is anyone here a car dealer ? If so, what did you have to become one?

I hear you have to put a sizeable bond and take a test, but would like to hear what else there is.

thanks,

Johnny

I have a plan in the works

 

Guys, ANSWER THIS QUESTION. Johnny is going to become a dealer and sell us all 3GS/2IS for $10.

 

I know there is also the resale license, dealer license, and business license
In California, it's a PITA to get granted the licenses. This is just to open a used car lot. If you want to be a dealership for a certain manufacturer, then you need approval from company. They are mighty picky when it comes to selecting dealers, need to have a lot of money first. lol

 

LOTS and LOTS of money.... and a connection with the manufacturer never hurt. They dont give dealers to any Joe Schmo that asks for one and has the means to afford it...

 

In California, the sign of your dealership(i.e. Longo Lexus or House of Imports) needs to be certain feet high so it can be visible from certain blocks away.

Johnny seems to be a stand up honest guy so this the following is no way a projection or insult on him. But a car dealership can be one of the quickest way to generate fast cash, if you don't plan to ever return to this country again. I'll spare the detail because CL is a legal and clean community and I don't want to violate no forum rules.

 

You also have to invest in a lot of equipment nowadays for the service bays and find and hire competent people to fill them....not to mention the service advisors and managers. In most cass you will need people with either ASE certification, factory training and certification, or both. The individual technicians, traditionally, buy their own small tools and tool chests, but, obviously, you as the dealership owner must provide the big things like the alignment and balance machines, rotor lathes, engine and transmission hoists, hydraulic lifts, computer diagnostic equipment, etc...... You must run the shop in compliance with EPA and state laws on A/C freon, disposing of old dirty fluids, etc....
You will also be periodically rated by the manufacturer and other organizations on how well you satisfy customers and do your job. Screw up enough times and you can lose your company franchise irrespective of your state licenses....Saturn is particularly strict on this.
And, of course, a dealership is a complex buisness. You will likely need lawyers, CPA's and bookeepers to do your buisness taxes, competent salespeople, plenty of space for your parts department, space to store your auto inventory, and INSURANCE...LOTS of it. A body shop, a auto-clean-up department, a nice showroom...........I could go on and on, but the list is endless.

Last, you'll be slipping me some pesos under the table to recommend the junk that you sell and steer you some customers..........( just kidding )

 

I'm not a dealer......just tooo many years in the car business.

sureley if he wanted a franchise, then yes, he would need a good track record as a general Manager in the car business to be able to get a Toyota, Honda, Ford, ect........


now days though, what some of your used car lots are doing is getting a franchise, with lets say, KIA, Suzuki,Dawoo and that sort of thing. One, it's easier to obtain franchise from a smaller manufacturer. and of course used cars is where the money is, so, by having your dealership reppin a Factory name you get the perks of having the better lenders. and that means more funding for your used car operations.

now, if you just want to open up a small pre-owned operation, then thats a little easier. maybe get yourself a nice highline lot . ( lots of those over here in dallas)

yes, first comes your dealer state bond. used to be a minimum of 25k but don't quote me.
once you have a bond then comes your dealer license.
wich before you get it, you have to have #1 a building ( you can even get away with a trailer to start with)
so, pics of building, proper signs, ( regulated by city) bathroom, customer area, offices ect....
but don't forget, once all that is done, how about some insurance. lot insurance, customer insurance,theft insurance ect.....

then you open your dealer..................so, now comes the hard part buying inventory ( the right way) advertising...ect.....



a friend of mine is fixin to open his first lot in 2 weeks.
all information from Texas.........yours could be diffrent, but you get the idea. GOOD LUCK

 

MONEY...MORE MONEY...AND SOME GREAT CREDIT! Once that is covered....from what I can tel you start from the bottom and work your way up.

IE...Steve Wynn, he wouldn't have gotten his Ferarri dealership if it wasn't for Penske.