Do you want to start a venture selling new and/or used cars throughout the US? The automobile sales industry is commonly regarded as one of the most attractive spheres even for beginner entrepreneurs. However, a dealer license is a cornerstone when it comes to the practical implementation of this idea. To achieve your potential, you need to go through several steps that are subject to legal and formal DMV requirements for your state.
Reselling a car is a stunning opportunity to make cash, as well as a good chance to open your own small-scale business. The demand for used cars is stable and high in any season. All that is needed to start a car resale business is the car, interest in the business, a small amount of time, and knowledge of some advertising tricks.
What do you need to know before reselling a car?
First, you need to carefully study the state of affairs in the car market in your region. After that, you can conclude which cars are more in demand; which can be sold more expensively, and which are cheaper. Before starting to work in the field of vehicle resale, you need to make sure that you know the features of this market and feel confident when carrying out operations. Monitoring ads helps to investigate the situation in the used car market. Try not to miss a good offer. If you see an attractive ad, it is better to call immediately and find out all the necessary information about the condition of the car, the availability of documentation, and the final price of the transaction.
If you made up your mind to make money by reselling cars, you should fully realize which models or brands you are going to specialize in. In any business, you can get more profit only with the persistent and stable application of efforts in one direction, so if you know everything about cars of a certain brand, it will only be in favor of your budding business.
The most crucial stage in the resale of a used car is its preparation and drawing up an ad for sale. Even if the technical conditions of the car were decent at the moment of purchase, it is necessary to bring its operational characteristics to the top state.
Afterward, you need to give the car an attractive appearance. For instance, tidy up the body and polish every detail. This is done to best reflect the car’s perks in the pictures, which play a significant role in a potential buyer’s choice. Simultaneously, try not to completely hide the shortcomings. Then, during a private inspection, the potential buyer will know what to expect from the car.
The next stage is placing the vehicle for auction. It is important to describe the motor vehicle well and accurately, indicating in detail all its features, equipment, and other characteristics. The detailed description inspires the buyer’s trust, and if high-quality and attractive pictures are placed under it, then calls from potential buyers will not be long in coming.
Every state in the United States divides the category of dealer license into several subcategories: dealer-wholesaler, auto broker, dealer of new and old cars, motorcycle dealer. Let’s have a look at license types within Southern Illinois:
- Franchise Dealer License: for the sale of new cars;
- New and Used Car License: for the sale of new and old cars;
- Used Only Car License: allows you to sell only used cars;
- Motorcycle Dealer License: allows you to sell motorcycles;
- Trailers/Mobile Homes Dealer License: for the sale of trailers, vans, and mobile homes;
- Salvage Dealer License: for the sale of damaged cars on behalf of insurance companies;
- “Buy Here, Pay Here” Dealer License: for the sale of used vehicles and offers to purchasers of financial options that do not require the receipt of third-party lenders.
Rules for participation in US car auctions may vary depending on the specific auction. To participate and resell the vehicle, you need to have a valid dealer’s license or register on the auction site as an individual. It is also mandatory to provide a deposit to participate in the auction.
What are the main stages of automobile auctions for car reselling?
- Participant registration. To participate in the auction, you need to register on the auction site. This is usually done online, but you can also register on the spot. A great example is southern illinois car auction which offers an impressive 300k vehicles for resale.
- Checking the car. The seller provides information about the technical condition of the car, as well as photos and other documents. At the auction, the cars are also inspected to make sure of their condition even if it is a reselling process.
- The bidding process can take place both in the auction hall and online. The buyer places bids on the car, and the one who offers the highest price becomes the winner.
- Payment and receiving the car. After buying a car, the buyer must pay for it within a certain time. Then he can pick up the car or order its shipping without extra hassle.
