Auto Dealer License

Welcome to my Flying Wheels YouTube channel. I own a car dealers One of my most popular videos is how to get a dealers license or how I got a dealers license at 23 with no money. I have a retail dealers license w But a wholesale license is the easiest and least expensive of all dealer licenses to get. It gives you full access to the dealer auctions. It allows you to buy from dealers. It allows you to sell the dealers. Well today I'm going to take you to the auction with me and explain to you what a wholesale license is and why you want it. Let's get going. Hey so welcome to a dealer auction. You can see there are thousands of cars be And w Also why it's the easiest of all dealer licenses to get and hopefully give you some tips on how to actually get it. So I'll start by saying that a dealer auction has very restricted access. Dealers only you can only be a licensed dealer or accompany a licensed dealer to get into the auction. So once again I have a retail dealers license. Retail means I can sell retail. I can sell to the public. I can buy them at auction. I can buy them from the public. I can buy them from other dealers and I can sell them to whoever I want. I basically have an all access pass to do whatever I want nationwide not just in my state. So I'm licensed in New Hamps I've been licensed in Florida. I can go across the country and buy cars and sell cars at any auction in the country with my retail license. Now a wholesale license is strictly wholesale. It allows you to buy and sell wholesale from dealer to dealer only you cannot sell to the public. It gives you access to go into the dealer auctions by cars. You can register a few yourself in my state. I t You can't just turn the title over So when dealers buy cars typically we don't register them or title them in our names. There are reassignments on the back of the title that says dealer reassignment only when you as a public person trade in your car private owner trade in the car to a dealer. You sign the back as the seller. We sign it as a purchaser and we can reassign it to whoever we sell it to whether it's another person retail or whether it's another dealer at auction or wholesale. And that's the difference between having a license and not having a license. When you're selling unlicensed you're doing it illegally. You're either not putting your name on the title and your title skipping w You're paying the taxes. You're paying the title fees and then you're turning it over for someone new to purchase and title in their name. We don't have to do that so it saves us the time of going to the registry, titling a ve We just sign it over to the next purchaser. We as retail dealers can do that and wholesale dealers are also allowed to do that as long as they're selling it to another dealer. Well why would somebody want a wholesale license? Well I'll tell you n The requirements are fractional compared to what it takes to get a retail dealer's license. My father has a wholesale license and he does it from He's licensed out of W And there'still profit to be made selling wholesale from dealer to dealer. Why would I want to buy from one dealer and sell to the other? Well there's money to be made still in the wholesale market. I can go out and buy cars off Craigslist, a Facebook marketplace. I can go buy cars anywhere I want from the public or from dealers and I can have them reassign to me and then bring them to the auction and try to sell them for a profit. I know a lot of dealers that make a great living just buying cars and reselling them wholesale to other dealers. They can either run it through auction or they just know dealers in general that they'll call and say hey I have a car for sale t Let's take t Now t And right now a lot of toys are getting over retail at the auction so there's no sense in even trying to sell your car on the retail market when you can get that or more just bringing it to the auction for a nice quick sale. Say nice quick sale because it really is. All I have to do is recon the car meaning clean it, detail it, make it look good, bring it to the auction, represent it correctly so announce any defaults, any defects in the car that way you build yourself and name that way people know who you are and they can trust buying from you. You don't want to lie, you don't want to clear check engine lights and run them through the auction. You want to be honest and create a good name for yourself. That way when you bring your cars through they know you're selling nice inventory w Now I say easy sale because it really is. As long as you bring the car and the title and you sell it at the auction that day you get a check that day. So if I bought that Corvette yesterday for 11. 5 I clean it up my shop and then I bring it here and I sell it for 12. 5 I give them the title guess what I mean $1,000 in a day on a Corvette they cut you a check that day. No headaches and no recourse. Recourse meaning if somet You don't have to finance anybody, the cars have to get paid that day, everyt Transaction complete. In most cases obviously the margins aren't as high though so you have to focus on the n So you make a million dollars over time not every time. So you can't be buying cars and then hoping to get a thousand to $2,000 mark up on every car that you run through the auction that's not how it works. Maybe you make 500 on 10 cars and that's 5,000 in a day and that's how wholesalers make their money. Now what about dealer plates? How do you transport your cars? Well in New Hamps You are not allowed to use it for private use so I can't go drive around leisurely in my cars on a wholesale license plate. They are only to drive from purchase to sale. So if you purchase it and you bring it back to your shop, if you bring it from your shop to the repair shop, if you bring it from your shop to the auction or the auction home that's how you're allowed to use it. You can't be putting a wholesale dealers license plate on a car that you're using leisurely as a dealer driver. And then in some other states You don't get a dealers license plate. Well what is a dealers license plate? A dealers license plate is somet I don't have to register them so I can take t I can drive t I can just take the plate off each car and put them on every other car that I own to drive them from place to place. Check with your state's requirements, check with your state's laws on what's allowed them. And a lot of times you can hunt down a deal at one auction, say the car was misrepresented, say you found something that nobody else found, or You might be able to get it a little bit cheaper at t So you can buy at one auction and sell it at another auction for profit. Or I can buy it here, fix it, clean it and bring it back next week and hopefully make a profit that way as well. So I'm going to take you into the auction with me and show you how the lanes work. Here are the auction lanes. It goes from A to F. There are bank repos, there are dealer trade-ins, there are wholesale units from other car dealers. So there are apps that dealers get to use that I can scan the VIN on every single car and it basically tells me what dealers are paying on average for that ve I'm going to use t It's a 2010 with 54,000 miles. I spilled my green tea on it but I know that that's what dealers are paying. Now I found some flaws with it so I'd If I can fix it, I should be able to sell it at auction for around $25,000. One owner, one accident. So I'm going to go see what it tells me. So it's at 23,000 already. That's the He wanted 26,000. I said I'do 23,000. I was also the Now I know if I can give that car just a buff, I should be able to sell that t After auction fees, it's about a thousand dollar profit on that car. Now it's not really worth spending 25 grand to make a thousand dollars. I could probably retail that car for significantly more. I'm talking 28,000, 29,000. So now you can see that profit margin on retail versus wholesale. Hey, so the auction is over and we are delivering cars back to my shop. I bought t Now I can scan the vin A Mannheim Market Report. And that is basically an average of what trucks So I know basically what they're selling for so I know I should be paying that or dealers are at least paying that in the past 30 days. So obviously if I'm wholesaling cars, I want to be far below that n MMR on that truck is 12,150. I paid $8,800 on it. So now I know there's roughly $3,000 of play that I should get. Even if I mark it up another thousand and I get just under 10 grand at auction, I'll make $1,000 and still leave enough juice in the fruit to squeeze for the next dealer. Now the market is absolutely insane right now. Dealers are paying astronomical prices for cars so you really have to work hard to find a deal. So I had made a video the other day that says I'm done buying cars because people are spending too much money. Well, my job is to buy and sell cars so I'm going to continue to buy and sell cars. I sold six wholesale t So I started looking harder for cars to sell that I know roughly what they're going to sell for and I can wholesale them to other dealers because they're paying close to retail for cars. So t I paid $4,500 for it and then I sold it at another auction a week later for $6,500. I sold t I took it in trade for $1,000 and I sold it at auction for $2,000. Now the other t For example, I bought this 2015 GMC Yukon Denali and the b So the first they did all eight fuel injectors. It was And then I bought a new b Now I know that car is going to sell for around $20,000. So I have to take into consideration what's an engine going to cost me, what's an engine repair going to cost me, what's a b So now if I have all the money into it, I do the fuel injectors, I do the b I paid $15,000 so I'll be in it for $18,000 to make $20,000. Now it's the same t I just wholesaled t But wholesalers can't generally expect to just buy a car and flip it in the same condition it's in and make money at the auction. It doesn't work that way. So I bought t Now I was hoping it was just coil and plug but I was expecting it to not be. It wasn't. It was lifters and it was a whole bunch of work. So when then we detailed it here, $8,800 for it. I spent three on it so I'm in it for 12 and it sold at auction again for $14,000. So I made $2,000 putting a little legwork into t Now I'm going to give you all the examples I use when I'm turning t I bought t It needed an engine. Now if you saw my recent videos on Jeep Wranglers, Jeep Wranglers are expensive. There is no such t So what did I do? I bought an engine. I paid short money for the Jeep. It took out the old engine, put in a brand new engine. Now I have a Jeep Wrangler that I paid short money for because it needed an engine that I can resell with a brand new engine and make some money. Now I can wholesale that at the auction because Jeep Wranglers get crazy money at the auction. So let's go back to t So it's a one owner, it's no accidents but it's kind of ugly in work truck. It has 200,000 miles on it but I know from reading the history that one owner, no accidents and work racks on it, it was probably driven So all I'm going to do is clean it up, remove the boxes, remove the racks, sell them both separately and then wholesale t So back at the auction, started pouring on us. I'll show you a couple of the cars that I bought today, how I got my prices and what I expect I should sell them for. So t I paid eight grand for them. Now I know I've sold a bunch of these for $12,000. That's after repairs. So I'm going to have a thousand to $2,000 into repairs if I want to retail. The retail means sell it to the public. I know by looking at the n So if I sell it for $9,000 I should be able to make a thousand just wholesaling. T I also paid right around $8,000 for t Now I just sold the 2010 STX which is So I know right off the bat if I want to retail t But realistically I know that it's worth more. So I'm going to retail it and put the time and money into it. I'm going to try to get all the money for it. But if I want to wholesale it I can just clean it up, make it look presentable, run it through auction for a smaller profit. And I bought one more car but I'm not going to show you what it is. You're going to have to follow me. You're going to have to watch my final R8 video to see what my other car is that I want to show you. So There's a lot less hoops to j You can do it from your own house in most states. Retail license I need a lot. I need special insurance. There's a specified size building you need to have a retail license. There's all kinds of stipulations. Wholesale is a lot less strict because you're only selling dealer to dealer. Now is the magic. How do you get a wholesale license? Well call your state DMV or RMV and ask for the dealer desk. Every state has a dealer department and they'll give you the requirements and tell you how to get started from there. It's pretty simple. If you ever want to get into t Guys I hope t I have a course coming out soon because a lot of people have asked me how to get a dealers license, how to sell cars. I have one coming out so make sure to stay tuned. I'll give you all my tips and tricks for free on this channel so I'll see you all later. Adios.