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Attaining Dealer License

Discussion in 'California (Southern)' started by TG, Sep 26, 2010.

  1. TG

    TG F1 Veteran
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    Oct 26, 2004
    5,915
    Newport Beach, CA
    Full Name:
    Taylor Good
    Knowing someone did this before buying an F-car, with the intent of only buying one F-car, is it worth going through the process? What are the fee's associated with it? Benefits? Insurance, and any other details would be appreciated...
     
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  3. technom3

    technom3 F1 Veteran
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    Mar 29, 2007
    6,971
    Phoenix AZ
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    Justin
    it is a very deep and involved process. It take MONTHS to set up, you have to set up a bond, qualify for insurance and in some cases have a building zoned in a particular area. Also, you must have a proper sign and the state will come out and inspect everything to make sure everything is on the up and up.

    It really isn't all that beneficial if you are purchasing one car... or even one car a year. The cost of dealer insurance as well as higher deductibles as well as justifying dealer use if you are involved in an accident at 1am on saturday night can get sketchy. Also, your insurance may want to hear about that as well...

    Also, the benefits are only good if you can pay 100% of the car in cash up front. If you finance the car you will get ZERO benefit from it.
     
  4. xs10shl

    xs10shl Formula 3

    Dec 17, 2003
    2,017
    San Francisco
    As mentioned, CA DMV requires that you have a signed lease in a properly zoned building, with a signature from a city planner as proof.

    If you are only going to buy one car, my advice is to pay the taxes and be happy. You will spend much more time and money on obtaining a license.
     
  5. plastique999

    plastique999 F1 Veteran
    Silver Subscribed Owner

    Nov 9, 2008
    6,043
    SoCal
    Full Name:
    Edward
    Bumping this again....has anyone gone through this process? I understand it takes time and a lot of paperwork, but if one buys and sells a couple cars a year, seems it may save on taxes, registration and insurance.
    For a wholesale license, can you operate from home?


    Sent from my 16M
     
  6. 360HB

    360HB Formula Junior
    Owner

    Sep 10, 2016
    345
    I did it for this specific process. its great to have dealer plates to slap on anything you want. If you want to shortcut the process, PM me. I am forming a new dealership with another friend, wouldnt be too hard to add another person to the license at this point. I already have the location. As soon as my new dealer license is approved, ill be surrendering my current license as I formed it with my 501(c)3 to get out of some taxes but its currently limiting my potential with the license. (THIS IS NOT MY PRIMARY BUSINESS) I just do enough to make some decent money, and be able to buy whatever I want at the auction (CASH ONLY.) I dont use any flooring nor do I offer financing to my clients.

    Hit me up if your interested in getting in. I'm located in Huntington Beach.
     
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  8. jlonmark

    jlonmark F1 Rookie

    Mar 29, 2005
    2,954
    Beverly Hills, CA
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    Jay
    Go for your wholesale license, it's much easier
     
  9. 360HB

    360HB Formula Junior
    Owner

    Sep 10, 2016
    345
    Then you are stuck with everything you buy, you can’t even legally register it to yourself. I started with a wholesale only license. Switched it out not even 90 days later.

    You can’t even transfer titles to a non dealer out of state. You’re 100% stuck with everything you buy unless you have another dealer who will retail run your cars for you. You’re going to pay a fee usually $500-1000 per car, then you’re going to pay tax and dealer fees on top of that. 100% not worth it!
     
  10. Jedi

    Jedi Two Time F1 World Champ
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    Mar 18, 2008
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    Wow!! NINE YEAR OLD Zombie thread resurrection - that's gotta be close to a record!! :D:D

    Jedi
     
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  11. 360HB

    360HB Formula Junior
    Owner

    Sep 10, 2016
    345
    I believe Edward bumped it purposely instead of starting a new thread
     
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  13. mamen644

    mamen644 Rookie
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    Aug 13, 2019
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    Mitch
    Impeccable timing, I have recently been trying to navigate various states dealer laws and hoops, trying to figure out the easiest process. The fact that this near decade old thread was resurrected just days ago is awesome! I'd definitely be interested, I will shoot you a PM.
     
  14. 360HB

    360HB Formula Junior
    Owner

    Sep 10, 2016
    345
    No problem, where you located?
     
  15. mamen644

    mamen644 Rookie
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    Aug 13, 2019
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    Mitch
    The great state of Nebraska actually
     
  16. plastique999

    plastique999 F1 Veteran
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    Nov 9, 2008
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    SoCal
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    Edward
    Thank you! PM sent


    Sent from my 16M
     
  17. Blackfin

    Blackfin Karting
    Rossa Subscribed

    Aug 12, 2014
    114
    Southern California
    It is not as difficult as people make out here in CA, just have to be smart about it. I have a full retail and a location I was able to get zoned. Message me if you would like some guidance, I got my license within 45 days of starting to look into the process.
    If you don't have a criminal record, apply for an occupational license, show the lease, get a business license, a $50k bond costs $500 and takes a day to process.
    My warehouse is zoned and I'd be willing to share and help someone out who is looking to get one.
    It pays for itself with the first 100-200k car you purchase and don't pay sales tax/registartion.
    I also have some track focused cars that wouldn't necessarily pas smog but I can drive them with my plate.
     
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  18. Jaydes

    Jaydes Rookie

    Dec 28, 2020
    2
    Looking into setting one up in California. Would appreciate any help from this group!


    Sent from my iPhone using FerrariChat.com mobile app
     
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  19. sparetireless

    sparetireless Formula 3

    Nov 2, 2003
    1,413
    you save the tax, probably costs $10k in real money and opportunity cost to set it up, for one car, not worth it, for someone with a car addiction and short attention span, worth it.
     
  20. jlonmark

    jlonmark F1 Rookie

    Mar 29, 2005
    2,954
    Beverly Hills, CA
    Full Name:
    Jay
    Montana LLC?
     
  21. VOKS7780

    VOKS7780 Karting

    Apr 2, 2020
    81
    Los Angeles, CA
    Full Name:
    VIC OVASAPYAN
    Likewise, any help will be greatly appreciated.
     
  22. msark

    msark Karting
    Rossa Subscribed

    Feb 18, 2017
    219
    Southern California
    There is another issue I came across in my research a couple years ago ... Insurance... Not the required dealers bond but the comp / collision on the cars.

    They are "inventory" and there are a host of limitations for regularly driving the car as well as where it will be stored.

    Worth looking .....
     
  23. ForzaV12

    ForzaV12 Formula 3

    Sep 15, 2006
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    Steve
  24. h22gordo

    h22gordo Formula Junior
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    May 24, 2004
    364
    So. Cal.
    Full Name:
    Gordan
    Yes, dealerships require their own 'dealer' insurance policies. Basically put, any car you put your dealer plate on, its automatically insured.
    Also, this wasn't mentioned in previous posts.... not all dealerships require a brick and mortar properly zoned location, You can always choose wholesale dealership over retail dealership. Wholesale is a bit less involved than retail.
     
  25. PA32Pilot

    PA32Pilot Formula Junior
    Silver Subscribed

    Mar 5, 2020
    794
    Glendora, CA
    Full Name:
    Jamie Kirk
    I’m in the process, taken the class and and DMV test. Go back to DMV August 8th to turn in complete packet.
     

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