Dealer Training Podcast

Learn why it is a great time to start a dealership.

https://dealerslicense.com

When it comes to having a dealers license, a vehicle

diagnostic scanner can be a potential lifesaver. A vehicle diagnostic scanner

is a computerized tool that retrieves information from a vehicle's electronic

control modules, which in turn can help you diagnose and repair potential

problems before they occur. Scanners are also great for troubleshooting

intermittent issues with a vehicle.

With so many dealers investing in a vehicle diagnostic scanner, it’s no surprise

that this is one of the fastest growing technologies. If you haven’t already

made the switch to a scanner.

Learn more at

https://dealerslicense.com

The CARS Rule was initially scheduled to go into effect today, July 30, 2024.

The CARS Rule will dramatically affect the operation of any dealership in the US in a negative way by requiring additional disclosures by dealers that are already in effect.

It will add a burden to every dealer.

This podcast explains why we need to contact our congress person to let them know dealers oppose the CARS Rule.

Learn more at https://dealerslicense.com

California Dealer License Start-Up Guide

1. Complete 6-Hour Pre-License Course (Online)
2. This course covers all steps, including paperwork, required to apply for your license.
3. Choose License Location

• Residential: Allowed if zoned appropriately; typically only for wholesale licenses.
• Commercial: Ideal for retail licenses; offers higher profit potential and visibility.

1. Obtain Dealer Surety Bond

• $50,000 Bond: For retail motor vehicle dealers and wholesale dealers selling 25+ vehicles/year.
• $10,000 Bond: For motorcycle dealers, lessors, and wholesale dealers selling fewer than 25 vehicles/year.
• Pricing depends on credit score; options are provided in the course.

1. Live Scan Fingerprints & Resale Permit
2. Fingerprinting is required for all owners/partners. Instructions are included in the course.
3. Register with Secretary of State & Obtain FEIN
4. Register your business with the Secretary of State and get a Federal Employment Identification Number (FEIN). Instructions are provided in the course.
5. Location Inspection
6. Your location will be inspected to ensure it meets state requirements. Details on scheduling this are included in the course.
7. Pass DMV Exam
8. Complete a DMV exam to get your license. Sample questions are provided in the course.

California Used Dealer License Benefits:

• Access to dealer auctions nationwide.
• Ability to purchase vehicles online or in person.
• Option to apply for an Auction Access ID card for easier auction access.
• Training includes how to legally charge document fees to increase profits.

License Location Details:

• Residential: Only for wholesale dealers; check with local zoning officials for compliance.
• Commercial: Offers broader customer base and higher profit margins; typically involves higher visibility and drive-by traffic.

Bond Requirements:

• Retail Dealers: $50,000 bond.
• Wholesale/Other Dealers: $10,000 bond or $50,000 depending on sales volume.
• The course provides guidance on finding the best bond rates.

Additional Steps:

• Live Scan Fingerprints: All owners/partners must be fingerprinted.
• FEIN Registration: Obtain this from the IRS; instructions included in the course.

Final Steps:

• Location Inspection: Ensure compliance with state requirements.
• DMV Exam: Complete and pass the exam to receive your license.

For a comprehensive guide and to start your training, visit https://dealerslicense.com

Georgia Dealer License Start-Up Guide

1. Complete a 4-Hour Pre-License Class
2. Attend a required 4-hour in-person pre-licensing class. Online courses are not permitted. Classes are available in various locations including Atlanta, Augusta, and Savannah. For schedules, visit georgiadealer.com.
3. Set Up Your Business Location
4. Establish a physical office or building, either with or without a lot depending on your license type:

• Used Motor Vehicle Dealer: Requires a lot.
• Used Motor Vehicle Dealer with Broker Endorsement: Does not require a lot but still needs an office.
• Ensure compliance with local zoning laws. Contact your city hall or courthouse for zoning information.

1. Obtain Insurance and Dealer Bond
2. Secure insurance and a dealer surety bond before applying for your license. Insurance covers test-drive vehicles, while the bond protects against fraud. We provide guidance on finding affordable options in the training class.
3. Get Sales Tax and Employer ID Numbers

• Georgia Sales Tax Number: Allows you to charge Title Ad Valorem Tax on vehicles.
• Federal Employer ID Number: Required for tax purposes.
• We show you how to obtain these numbers at no cost in the training class.

1. Register with Secretary of State
2. Register your business with the Georgia Secretary of State. This step will be covered in detail during your dealer training class.
3. Obtain a Local Business License
4. Acquire a local business license to operate legally within your city or county. This can be done online and will be explained in the training class.
5. Register for Fingerprints
6. Complete a fingerprint-based background check with the Georgia Bureau of Investigations. This is mandatory for all license holders. The presence of a criminal record does not automatically disqualify you.

Once these steps are completed, submit your application packet to the Board of Used Motor Vehicle Dealers in Macon. Your license will allow you to purchase vehicles from dealer auctions across the U.S., Canada, Mexico, and beyond.

For class enrollment and more information, visit https://dealerslicense.com

(one person on a Georgia dealer license must be a Georgia resident)

A Vehicle History Report (VHR) is a detailed

document that provides information about the history of a specific vehicle.

Carfax is perhaps the most

well-known vehicle history report provider. It aggregates data from thousands

of sources, including state DMVs, auto auctions, repair shops, and insurance

companies. Carfax reports are comprehensive and widely trusted by consumers and

dealers alike.

Key Features:

Accident History: Provides

detailed information about reported accidents and damage.

Service Records: Lists maintenance

and service history if available.

Title Information: Checks for

title issues like salvaged or rebuilt titles.

Ownership History: Shows the

number of previous owners.

Odometer Readings: Verifies

mileage to detect odometer rollback.

Owned by Experian, AutoCheck

offers vehicle history reports similar to Carfax but may access different

databases and emphasize different aspects of a vehicle’s history.

AutoCheck

is a service that specializes in compiling and presenting comprehensive Vehicle

History Reports. AutoCheck reports draw data from multiple sources, including

government agencies, insurance companies, dealer auctions, and service

facilities. One thing that separates AutoCheck form other Vehicle History Report

Providers is that it complies more data directly from dealer auctions. So it

compiles more data about how many times a specific vehicle has been sold

wholesale, you might find a specific vehicle has changed hands from a multitude

of dealers and that could be a buy you might want to avoid.

Score: Provides a score based on

the vehicle's history, helping dealers quickly assess its condition.

Auction Data: Includes information

from public auctions, dealer auctions,  and other wholesale transactions.

Accident Data: Analyzes reported

accidents and damage.

Odometer

Check: Verifies mileage discrepancies.

National Motor Vehicle Title Information System

Established under the Anti Car

Theft Act of 1992, its creation was

in response to increasing concerns

over vehicle theft and fraud across the United States. Prior to its

establishment, there was no centralized system to effectively track vehicle

titles and histories nationwide. This lack of transparency made it easier for

criminals to alter or counterfeit vehicle titles, which led to selling stolen

vehicles or vehicles that have had their odometers fraudulently altered.

The Anti Car Theft Act of 1992

laid the groundwork for NMVTIS, mandating the creation of a national title database

This National Title database would provide crucial vehicle history information

to various stakeholders, including law enforcement agencies, consumers, and

businesses involved in the sale and purchase of vehicles.

Key Features:

Title Information: Verifies the

current state of title and any previous brands (e.g., salvage, rebuilt).

Odometer Readings: Checks for

odometer discrepancies reported to NMVTIS.

Theft Check: Indicates if the

vehicle has been reported stolen.

Learn more at https://dealerslicense.com

Or start your free trial and get a $250 credit for Dealer Management Software that runs Vehicle History Reports for as little a $.25 apiece at:

https://get.dealercenter.com/get-a-demo/automobile-dealer-training-association/

The importance of dealers reporting correct odometer information cannot be understated.

This episode of the Dealer Training Podcast covers odometer information, such as the most recent odometer reporting requirements, odometer disclosure, and how to protect yourself against odometer fraud when buying vehicles to resell.

Find much, much more information at https://dealerslicense.com

This podcast goes in depth into the premises and location requirements.

You will need to know exactly what the Texas Department of Motor Vehicles will expect of you when you get your dealer license

By knowing your premises requirements you will know what to look for when you are searching for a location for your dealer license.

You can take your official Texas Department of Motor Vehicle Dealer Pre-License Course at

https://texasdealers.com

Find the best business entity for your dealerhip.

This podcast discusses the pros and cons of a retail dealer license versus a wholesale dealer license.