Dealer Training Podcast

This episode compares a Retail Dealer License versus Wholesale Dealer License. Some state allows a broker license, and the podcast covers that as well.

Vehicle Diagnostic Scanners

What Else Can You Do With a Dealer License?

What can you do with a used motor

vehicle license, well you can do a lot.

Are you thinking about getting a

dealer license?

Well, this little piece of paper

does way more than just let you sell cars from a lot.

I want to break down the powerful

and lucrative things you can do with a dealer license—and how it can turn into

a business with unlimited profits.

At first I want to show you the

benefits of a dealers license and if you watch to the very end, I will show you

how to get licensed depending on where you live.

https://dealerslicense.com

Number 1. You Sell Cars to the

Public

If you would like to start that

small car lot and sell vehicles locally you can certainly do that, the small

lot is truly the foundation of the industry.

With a license, you can legally

buy vehicles at low wholesale prices and sell at retail prices—right from your

lot. That means more profit per sale. The average profit per sale normally runs

around two thousand one hundred dollars per vehicle

Number 2. Buy From Dealer-Only

Auctions

You will have access to exclusive dealer

only auctions like Manheim, Adesa, ACV AUCTIONS, CAR MAX Now has a dealer

auction, Backlot Cars and a website called OVE.com, OVE, or Online Vehicle

Exchange, OVE is Manheim's 24/7 online marketplace for licensed dealers. It

allows dealers to conduct business outside of traditional physical auction

lanes. OVE provides a platform for dealers, buy and sell vehicles nationwide

with several delivery options available to licensed dealers. No matter what

vehicle your customer needs, dealers can scan OVE, show the vehicle to the

customer and hide the price, then buy any vehicle the customer is looking for

and have it delivered within a couple of days. You will have access to vehicles

the public never sees at prices the public can never get.

3. Flip Cars Without Limits

Most states only let you sell 3 to

5 vehicles a year without a license. Some states require you to obtain a

license even if you are selling 1 or 2 vehicles for a profit. But with your

dealer license? No limit. Buy, fix, and flip as many vehicles as you want.

4. Sell to Other Dealers

(Wholesale)

If you are not interested in

retail , you can be come a wholesale only dealer, which tends to have lower

startup costs.

You can sell directly to other

licensed dealers without dealing with the public. But I do want you to be aware

that a wholesale license only allows you to sell vehicles to other licensed

dealers which can really limit your income opportunities.

5. Export Vehicles Internationally

There is a HUGE worldwide demand

for vehicles in other countries.

Used cars are in demand all over

the world. With your license, you can buy at U.S. auctions and ship cars

overseas with very large profit margins.

Africa  Toyota Corolla, Camry, Honda Accord, Ford F-150

Eastern Europe has a huge demand

for  German and Japanese sedans, U.S. SUVs

South America cant get enough

Pickup trucks, diesel-powered vehicles

Middle East   they need Full-size SUVs, luxury cars, salvage vehicles

Caribbean     Compact sedans, older SUVs, motorcycles

6. Offer In-House Financing

You can start a very lucrative buy

here pay here dealership, and I am aware of software that will run a buy here

pay here dealership for you automatically.

If you think about how a buy here

pay here model works when you have a multitude of customers making payments to

you every month, it can create a very lucrative cash flow

And you can sell the loans that

you create every month to investors. Investors want to by your loans,

especially the loans that you create for someone with bad credit.

7. Buy Vehicles Tax-Free

You can legally buy vehicles to

resell without paying sales tax. That helps your cash flow and gives you more

room to negotiate deals.

8. Run an Online-Only Dealership

In many states, you don’t need a

big car lot. Just a compliant business office. Some dealers sell entirely

online and still make great money. Let me know if you have ever sold a car

online in the comments below.

Some states will allow you to have

a dealers license at your home but that is not the norm and will usually only

apply to someone that lives in a rural area with lenient or no zoning laws.

While it may seem tempting to

avoid the expense of rent by operating online only or selling from home, paying

a small monthly fee for a physical location brings real benefits that far

outweigh the cost.

A small physical location whether

it is an office or office with one or two parking spaces allows you to meet

local licensing requirements much more easily. And if you cannot meet licensing

requirements, you are missing out on a very lucrative industry that has many

more benefits than just selling on the lot. Even if you are going to run your

business entirely online, you will still need to meet your local licensing

requirements which usually require some type of physical location away from

your home.

So whether you want to run a

retail dealership, export worldwide, flip cars, or wholesale to other

dealers—your license is the key that unlocks it all

https://dealerslicense.com

OVE Online Vehicle Exchange is Manheim's online market place for licensed motor vehicle dealers.

Dealer Trends 2025

Hey there, dealers — and welcome

back to Dealer training podcast, the go-to podcast for used motor vehicle

professionals who want to stay sharp, profitable, and ahead of the curve.

I’m your host, Delus Johnson, and

today we’re diving into the top used car dealer trends shaping our industry in

June 2025. Whether you’re running a small independent lot or managing a larger

operation, these trends can affect how you buy, sell, and scale your

dealership.

Let’s get right into it.

1. Inventory Sourcing Is Still a

Challenge — But the Tools Are Smarter

The auction lanes are still lean

in 2025, and dealer competition for quality vehicles remains intense. But the

bright side? Inventory sourcing software has stepped up big time.

Platforms like discountdealercenter.com

now offer smarter alerts, better VIN intelligence, and predictive analytics. If

you’re still manually scanning run lists without tech — you’re falling behind.

Use your DMS or third-party tools to optimize what you're paying and how you’re

bidding.

2. Buy Here Pay Here (BHPH) Is

Expanding Again

Subprime borrowers are growing due

to tightening bank lending policies. As interest rates stay high and credit

standards stiffen, Buy Here Pay Here dealers are seeing more walk-ins — and

they’re adjusting their terms accordingly.

The key here is compliance and

tech. If you're in BHPH, make sure you're using systems that automate

disclosures, collections, and reporting. Regulators are watching BHPH closely

in 2025. And I want every buy here pay here dealer to be aware the loans you

create are very valuable and investors are purchasing buy here pay here loans

at a level that I have never seen, so you can package the loans that you

created last month into a package and easily sell those loan on the Agora

market place, discountdealercenter.com will allow you to sell all your buy here

pay here loans at top prices, once again that is discountdealercenter.com

4. Trade-Ins Are More Important

Than Ever

With wholesale prices stabilizing

and retail pricing softening, your margin on trades might be the best margin

you make.

If you're not actively asking

every customer for a trade and agessively pursing purchasing vehilcs from folks

who don’t trade — you're missing a key opportunity. Use online appraisal tools,

promote trade bonuses, and get creative with how you market your trade-in

program.

5. EVs and Hybrids Are Slowing

Down in the Used Market

You may have seen it on the lot:

EVs are sitting longer.

Used electric vehicles, especially

earlier models with shorter range or outdated tech, are starting to depreciate

faster. Dealers should be cautious about EV pricing and only stock models with

strong resale history — like Teslas, Toyota hybrids, or newer Ford EVs.

That said, don’t ignore the tax

credits and incentives available for used EV buyers — these can be powerful

tools for marketing.

6. Floorplan Costs Are Eating Into

Margins

With interest rates holding steady,

floorplan costs continue to squeeze used car dealers. This is especially hard

for smaller lots who rely heavily on credit lines.

Smart dealers are shortening their

average days in inventory. I always recommend tyring ry to move cars within

30–45 days max, and negotiate with your lender for flexible terms when

possible.

7. State-Level Legislation Is

Changing Fast

Many states — including Georgia,

New Mexico, Texas, and California — have passed new laws in 2025 that affect

dealer operations.

Some of these changes impact:

Temporary tag issuance

Surety bond requirements

Dealer license renewals

And even RV sales policies

Make sure you're plugged in to the

latest training content at dealerslicense.com

8. Online Sales? Still a Mixed Bag

Some dealers are crushing it with

online-only platforms. Others are finding it’s more headache than help.

The takeaway for June 2025? Hybrid

selling — online listings that drive in-person sales — is still the winning

formula for most independents.

Focus on your Google reviews,

offer a fast response time online, and make sure every unit has high-quality

photos, a vehicle history report, and optional financing or warranty offers.

Discountdealercenter.com

This podcast shows how dealers can increase profits when selling electric vehicles.

Missouri allows you to obtain a dealer license at your home. This podcast shows you how.

This podcast talks about the impact of tariffs on used motor vehicle prices and parts.

The importance of maintaining compliance at any dealership is discussed in this podcast.

Texas Dealers will no longer issue Temporary Paper Permits, the will issue Metal Plates