What Do You Know About Getting A Dealer Plate?

leadsupplier

leadsupplier

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Aug 11, 2009
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If you don't know what a Dealer Plate is, it's a special license plate, or license that lets you go to used car auctions to buy cars a lot cheaper than retail value.

I would definitely like to get one, but it's hard to find out how to get one, so i was wondering if anyone on here personally knows someone that has one or how to get one.
 


Test drive a car and jack it off the back?

Actually it depends on your state. Some you need a certain size garage + lot to be concidered a dealer, some not.

Kinda of random I saw this thread. Im going to register as a boat dealer tomorrow with my state (tax reasons).
 
about $50k would get you the license to go to the private auctions is what i found out researching in the New England area
 
I would assume wickedfire is the best place to ask about dealership plates. You know, since were local, trustworthy, and sell a lot of cars.
 
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leadsupplier said:
If you don't know what a Dealer Plate is, it's a special license plate, or license that lets you go to used car auctions to buy cars a lot cheaper than retail value.

I would definitely like to get one, but it's hard to find out how to get one, so i was wondering if anyone on here personally knows someone that has one or how to get one.
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Like everyone else is saying it depends on the state. I've got a dealers license in AZ because I own a small dealership here. The state requires $100,000 bond, a long application process (They say 12 weeks, its more like 6 months). I'm not sure what you're reasoning is, but if you're not buying and selling a lot of vehicles there's really no savings. Dealer insurance can be pretty expensive, and a lot of states don't really like you driving around on dealers plate, unless you're in the "act of doing business". If you're a habitual car buyer, there's the potential to save money on sales tax and licensing, but you'd have to be going through a lot of cars to justify it.
 
BigWill said:
Test drive a car and jack it off the back?

Actually it depends on your state. Some you need a certain size garage + lot to be concidered a dealer, some not.

Kinda of random I saw this thread. Im going to register as a boat dealer tomorrow with my state (tax reasons).
Click to expand...

this is interesting, is it easier getting one of those licenses?

i've also heard of ATV dealers too, which would do good around me..

I'm not looking to have a huge dealership, I was thinking more along the lines of going to the auctions getting a cheap car and just selling it for some profit ... <--this is not do able tho?
 
It has been awhile for me, about 5 years, since I was in the car business but here is what I remember.

Dealership license is tough and requires a good investment. As thesanchez said, at least here in PA, you need to be bonded, have dealer insurance and a stable business location that can hold cars. You need to go through a huge package of requirements, including taking pictures of your business, posted hours, handicap spot sign, lighting, doorway measurements and so on. Basically, they are trying to cut out the shady shit.

However, a wholesaler license is different, which is the bare min you need for any good auction. I am not sure what all is needed for that because I ran dealerships, not wholesale businesses. But, with a wholesale license, I am not sure how many cars you can sell to the public without having to get a dealer license. But there is a large business in wholesaling directly to dealerships. Cuts down on their expenses if they outsource that, so you could always do that until you have enough to get your own lot.

In PA, your lot can be small, but I think it has to hold something like 5 cars on it and you have to be able to open your front door of the business when those 5 cars are parked there. That is directly from the requirements actually lol So, you don't need a lot, but you will need to drop some money on the bonds and insurance. Hope that helps you out a bit!
 
To become a boat deal in my state you simply have to fill out a one page registration form and are approved instantly. This gives you access to dealer plates and no taxes on boat / pwc and some other purchases.

Saves me a shitload in taxes this summer

Op its possible. You need to see what it takes to register in your state or another state you can get an address in..
 
I paid some guy $200 to get me into one of those huge dealer auctions in NJ. Well worth it cause you can save $1,000's on a car - except you don't really know what you're getting (not a lot of docs on each car)
 
barman said:
I paid some guy $200 to get me into one of those huge dealer auctions in NJ. Well worth it cause you can save $1,000's on a car - except you don't really know what you're getting (not a lot of docs on each car)
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Did you pick up anything? Do they show the Carfax? (serious question but may sound stupid)
 
BigWill said:
Ive always been curious. When getting into an auto action are their prices generally cheaper than ebay? Like can could you go in buy 20 cars and sell them on ebay for profit?

Was poking around and found this: https://www.auctionaccess.com/aadc/views/home.jsp

Time to photoshop up some docs ;p
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Yes you can. That's why its dealers only. You get cars dirt cheap (assuming you're any good at bidding) then you sell em at your "dealership" (ebay)
 
Dare Devil said:
Did you pick up anything? Do they show the Carfax? (serious question but may sound stupid)
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No - it's just a giant lot of cars and a bunch of dealers walking around. The cars have very few documents on them (This was like 7 years ago though, so things may have changed) and yeah I picked up a car at a fucking steal.
 
I bought both my Volvo and my Durango at the Manheim Auction and I didn't have allot to go on other than the low mileage and (looking) straight..After I bought them I did Carfaxs to check them and was lucky. That said if and when your'e there it's pretty much caveat emptor..

These days i'm assuming it's easy to research while you're there on site.

B~
 
4thseason said:
I bought both my Volvo and my Durango at the Manheim Auction and I didn't have allot to go on other than the low mileage and (looking) straight..After I bought them I did Carfaxs to check them and was lucky. That said if and when your'e there it's pretty much caveat emptor..

These days i'm assuming it's easy to research while you're there on site.

B~
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Been to Manhiem a few times. Fuckin huge place.

Also, if you have the cash flow, a great way to make money at the auctions/ebay is to buy off season. One big wholesaler in my area scoops up a ton of Mustangs in the winter when dealers are dumping them for next to nothing and then kills in the spring/summer season when every one is looking for them.
 
leadsupplier said:
this is interesting, is it easier getting one of those licenses?

i've also heard of ATV dealers too, which would do good around me..

I'm not looking to have a huge dealership, I was thinking more along the lines of going to the auctions getting a cheap car and just selling it for some profit ... <--this is not do able tho?
Click to expand...

Totally doable. The thing about the car business is the money is always made when buying the car, not really when selling. The bottomline is, unless you're buying super exotic cars, that there's always a good supply of cars for sale for a specific make and model, and that people generally shop by price and quality. So to make money you need to be what we call "under the money" - in the car lower than the going rate to hit your margin and not end up in deep shit.

Auctions really aren't that scary, you just need to take all the emotion out of it. I've screwed my self several times by getting pissed at someone who's trying to screw me on the car and getting into a bidding war. When it comes to buying a car from an auction, all reputable auctions do condition reports, that get the overall exterior, and mechinical condition of a car. If it's a boat, they'll compression test the motor, check all the typical bs, etc. When it comes to cars, as long as you're buying a fairly common car and have some common sense you won't screw yourself. There's been a few times when I bought say a BMW, the car had been sitting in storage for a while and rats got in an ate the wiring. The auction then handles the arbritation and either the seller or the auction covers the repairs after you push on them hard enough, because most stuff should be caught during the inspection - that's what they get paid for. Manheim, Adessa, etc also offer postsale inspections for extra assurance.
 
Make friends with someone who works in the service section of a car dealership, namely a manager (speaking from experience).

A close friend of mine can take the dealer plates out whenever he wants, has actually had one on his maxima for 1 month while waiting for the title from the previous owner.
 
Still in the business... Just thought about this, but would anyone be interested in getting wholesale pricing without having to deal with the paperwork and responsibilities? Hit me up if so....

end of plug :-P
 
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