If you’ve got a mind for cars and sales, the thought may have crossed your mind to open up your own used car lot, or host their own auto auction. This requires a ton of hustle and some tricky navigation through legal waters. Since it could spell disaster for all your hard work to be undercut by forgetting to sign a few papers here and there, let’s examine the ways to keep your used car lot on the level.
Before getting started, you must first obtain a business licence. These licenses are usually handled through municipal government and are relatively inexpensive. Because application processes and wait times differ from case to case, it’s best to check with a phone call to your town hall to see what you are in store for. You are one step closer to holding that car auction, but there are still a few steps in front of you. Check here!
Find out where you are going to be selling cars from. Keep in mind that this must be a location approved for such activity. If you have a bit of property around your residence and plan to open up your lot there, you may have some large legal issues on your hand. To make sure that this is all done according to local law, go through an accredited business realtor. Not only will they know business addresses that will fit your needs, but they can also instruct you on how to move forward legally.
In order to legally sell cars and own your own lot, you must first get a dealership license. This is a multi-tiered process, so let’s look at all the steps.
-Obtain a sales tax number- A tax number ensures that your business is traceable through your country’s revenue agency.
-Get a criminal background check- This can be done at your local police station. Your standing with the law will need to be in good order if you wish to continue with your auto lot.
-Insurance- Your business will need to be insured, as will the cars on your lot. Your insurance must also cover customers and employees on site.
-Get Bonded- Getting a dealership surety bond means that you are registered and insured to do business on your lot legally and ethically. It is an agreement to the customer that you will not, and have not participated in any fraudulent activity.
Owning and operating a car dealership is not something that can be taken lightly, or done casually. There are many steps before you sell your first car that you must take to make sure that you are working within the law. The road to your goal may present unforeseen complications, but chances are the tools to overcome them will be apparent at that specific time. By keeping the previously mentioned items, you will be well on your way to owning your very own car lot and hosting a used car auction. For more information visit: https://www.forbes.com/sites/jimgorzelany/2019/02/14/when-buying-a-new-car-is-a-better-deal-than-a-used-one/#381abd03ec3e