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Has anyone tried this. There is a local dealer who will allow me to form a dealership, using his existing dealership license, to buy/sell vehicles ($200 per month). Has anyone had any good or bad experiences they can share?

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how are you going to form a dealership under someone else's license? Are you sure this isnt illegal, or do you know its illegal and just hope to get away with it?

Most likely he will add you to his AuctionAccess account and issue you an AuctionAccess bidder's card under his account.
That card allows you to buy cars under his dealership at major dealer only auctions.

You would then buy/sell the vehicles under the dealer's name.
The dealer will make $200 a month and you get to try yourself in auto sales.

I have done similar things for several friends. However, I have taken a flat fee per single vehicle one would buy under my account. This is a pretty standard procedure with dealers.

He can hire you as a sales person under his account. He is taking on some liability, so he is taking the $200, not bad for an industry that's in the crapper.
It's completely legal, as long as he registers you with DMV.

I was looking into starting a mini dealership over the summer, but now I'm glad I didn't waste my time. Car values went through the floor.

PolarDude said: He can hire you as a sales person under his account. He is taking on some liability, so he is taking the $200, not bad for an industry that's in the crapper.
It's completely legal, as long as he registers you with DMV.

In CA , being licensed as a vehicle salesperson is something you need to do yourself, get fingerprinted, pay a fee (think I was about $100 15 years ago), and hang your card in the dealerships office. I stil have my VSL from when I was 19.

Thanks for the replies everyone. The $200 per month fee also includes a dealer insured plate. I realize that the economy presents a problem but I have planned around it. Thanks again for the help.

Still not sure if what he is offering is kosher, if you dont have any of the required licenses/insurance etc yourself, but if he is simply able to add you as part of his business, $200/month total fee is a pretty cheap, considering all the overhead a dealer must have (office/lot, insurance, licenses etc)

He has the legal ability (I'm in Texas) to do this and you're right, it is very cheap. I don't see a down side so far.

SUCKISSTAPLES said: Still not sure if what he is offering is kosher, if you dont have any of the required licenses/insurance etc yourself, but if he is simply able to add you as part of his business, $200/month total fee is a pretty cheap, considering all the overhead a dealer must have (office/lot, insurance, licenses etc)

In TX, I thought that dealers had to post a 15-20k bond... Ton of liablity for $200/mo.
What part of TX are you in?

That is pretty cheap, and yes risky for him. He either knows/trusts you.. or he's so far in the crapper himself that he'll probably fold in a few months putting you in a potentially bad situation if you're between deals.

I wouldn't worry so much about the market for this situation.. people need cars, and being in used cars is what is doing better now. My FIL has a used car business and although always slow around Christmas and January, otherwise he's doing just fine with that.

That was actually one of my main concerns - could be near the end of biz. Could also be he's trying to supplement his income during a bad time.
ilikebtmoney said: That is pretty cheap, and yes risky for him. He either knows/trusts you.. or he's so far in the crapper himself that he'll probably fold in a few months putting you in a potentially bad situation if you're between deals.
.

dcg9381 said: In TX, I thought that dealers had to post a 15-20k bond... Ton of liablity for $200/mo.
What part of TX are you in?


in TX the surety bond should be for $25K...



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