With the number of cars I have been buying and selling lately, I'm considering getting a an Auto Dealer license here in AZ (I already have a company). I was curious if any members of this forum have an Auto Dealer license here in AZ? Is it easy to get, and is it a good choice for somebody who turns 3-4 cars a year?

Thanks!

 

welcome to the forum! since you asked a question specific to arizona, (aka our southwest region), i moved your thread to hopefully get you more replies from your intended members.

 

Thanks! I hope somebody can answer my question.

 

Three or four cars a year is nothing. I don't believe you're even close enough to require a dealer's license. I believe the maximum number of cars you sell per year without one is about 12.

As far as confirming this information, you're best off calling the DMV. They have information on forms for you to fill out for this.

 

AFAIK you don't need to meet a minimum number of cars you sell per year (at least there's no information on that on the DMV page). Surprisingly, the information given on the DMV web page is very basic, it looks like it's something that is fairly easy to acquire compared to say, California.

I'll give them a ring and let you know what I find out.

 

i thought you needed a certain amount in assets or something..maybe im wrong..good luck man

 

I think you have to have to be bonded for a certain amount which means you have to come up with $10-20K to be held by a third party along with an AZ biz license.

 

I'm pretty sure it's like a lot of things. Once you start selling so many cars per year, it's considered your primary source of income. At which time it'd be considered taxable and tracable. It's been a few years, but a really good friend in high school used to buy cars at auctions and sell them for a small profit. I believe he had to keep it under 1 car per month to be considered exempt from the law. I don't believe any amount of assets was required since most of the cars he bought weren't worth more than about $5k in the long run anyway.