Calling all auto dealers....

[jorswift]

Question...
My side thing has been salvage motorsports sells, UTVs & ATVs. I bid on them from online salvage auctions, fix them up and resell. I have done a several, but I would like to do more of it. However, my state requires me to get an auto dealers license in order to bid in state, even on power motorsports. I have been bidding on out of state lots, traveling and bringing them back, which is nice, but gets timely and costly. However, the state of Indiana auto dealers requirements suck! I need a lot, a climate controlled office area, etc. Since this is just a side gig, I cannot afford a building, lot, etc. Is there a way around this? Is there a way to "pay" a dealer for a license # or something just to bid on these auto auctions? There is also a broker option, but too their fees are crazy and wire transfers, etc. are not my thing. Any advice or thoughts? Thanks.

 

[journeyman713]

I bought a couple vehicles from the Milwaukee metro auto auction, without a license. Just partnered up with a small car lot owner. All he asked, is that I act as a driver for him if I bought nothing at the auction, or if I bought something, he gets a couple hundred bucks.

 

[jorswift]

I bought a couple vehicles from the Milwaukee metro auto auction, without a license. Just partnered up with a small car lot owner. All he asked, is that I act as a driver for him if I bought nothing at the auction, or if I bought something, he gets a couple hundred bucks.

I thought about that, but I dont know any auto dealers or local dealers. I wouldnt be apposed to offering a few hundred bucks per vehicle to a dealer for use of license.

 

[journeyman713]

I thought about that, but I dont know any auto dealers or local dealers. I wouldnt be apposed to offering a few hundred bucks per vehicle to a dealer for use of license.

Just go to some lots and tell them what you're looking for. If they don't have it, get the conversation started.

 

[98XJRC]

Consider talking to your local mechanic. They may be willing to work out a deal. I believe this is what a friend of mine did or does still currently in order to buy vehicles at auction.

 

[jorswift]

Any dealers have advice?

 

[stanginthe11s]

first, do you have property at your home? if so, go to the town and get your zoning code. your house is an office, and your property is the lot. we have the same rules here but if your zoned for it then it comes down to how you word things.
second, if you want to get serious about it, go rent a spot or use friends as the "storage lot". or talk with a friendly repair shop and see if a deal can be made.
third, vehicle donation lots can be a great place to look because they sell the vehicles that come in and having a repour with them will go a long way.
lastly, besides the donation places, many used car dealers may be willing to help you if you talk to them. if you're willing to take cars that they would normally pass on then it doesn't hurt them.
also, wording is key when it comes to this. you do not want to be a dealership. therefore, the laws you found do not apply. research your DMV laws and you may find that there are other ways to bid at auction.
if doing the leg work isn't for you then # 3 is your best bet.

 

[Michael Rankin]

I thought about that, but I dont know any auto dealers or local dealers. I wouldnt be apposed to offering a few hundred bucks per vehicle to a dealer for use of license.

Unless you already knew someone, I highly doubt this would work.

Every state is a little different, but here is how things work in mine.

1. For you to buy at auction or go to a dealer auction to preview items under a dealers license, they will have to register you as an “agent”. You work for them

2. When you do buy something, the auction will have to be paid by the dealer, not you.

3. Now the dealer has to maintain records on the the vehicle.

4. In my state, The dealer can’t just sell them to you at this point. That would be illegal. They would get in trouble for repeatedly selling items to a person over and over that is not a legal dealer.

5. You would have to sell the vehicle to the retail person after it is fixed under the dealership. The dealer would have to maintain records of purchase price, repair cost, sales price ect for tax purposes. Your portion of the profit would be a “commission”. More records documentation for the dealer.

I think you would be hard pressed to find someone to do all this with a stranger, and have all liabilities for complaints after a retail sale fall back in them for a few hundred dollars per unit purchased.

 

[Michael Rankin]

Question...
My side thing has been salvage motorsports sells, UTVs & ATVs. I bid on them from online salvage auctions, fix them up and resell. I have done a several, but I would like to do more of it. However, my state requires me to get an auto dealers license in order to bid in state, even on power motorsports. I have been bidding on out of state lots, traveling and bringing them back, which is nice, but gets timely and costly. However, the state of Indiana auto dealers requirements suck! I need a lot, a climate controlled office area, etc. Since this is just a side gig, I cannot afford a building, lot, etc. Is there a way around this? Is there a way to "pay" a dealer for a license # or something just to bid on these auto auctions? There is also a broker option, but too their fees are crazy and wire transfers, etc. are not my thing. Any advice or thoughts? Thanks.

In addition to my previous post, here’s a few other things to consider.

1. You are doing this to make money, it’s a business.

2. You mention you have to be licensed to buy at auctions in your state. Is it legal for you to be selling these vehicles unlicensed in your state? In my state that would be illegal also. Huge fines per violation if caught. I think it is $10,000 per violation. You can sell you own personal vehicles no problem. When doing it like you are, here it’s illegal.

3.It sounds like operating legally as a business takes all your all your profits.

4.Do you currently keep records of your purchase price, repair costs, sales prices, and then pay your taxes on all that?

Unfortunately lots of “side gigs” work great when operating unlicensed,not paying taxes, and not having to deal with all the crappy government regulations/compliance that all the legal businesses have to deal with.

It is a pretty big added expense and time consuming to operate a legal business.