(1) Obtain your own used car dealer license from New York.
Show Me How
Any person or company located in the state of New York, wishing to sell more than 5 cars within a calendar year for profit or otherwise, must obtain a New York Used Car License and follow NY Motor Vehicle Dealers & Transporters Regulations. A used car dealer license is also needed to access dealer-only automobile auctions.
The state of New York will issue a used car dealer license to any person or company located within the state of New York that meets the requirements as outlined here.
The 5 major steps for obtaining a used car dealer license from the state of New York (NY) are:
Step #1 Review All Necessary Requirements:
- It is prudent that you fully educate yourself before embarking on the journey of obtaining your own New York used car dealer license. The process of obtaining your dealer license is an exacting process and the state of New York is unforgiving. Every little detail matters!
- The length of time to obtain your NY dealership license can range from 6 weeks to 3 months. For instance, getting your location approved by the local city or town can take weeks to months depending upon local laws, restrictions and the overall approval process of that city or town.
- Obtaining the insurance and the surety bond can take weeks of searching and numerous applications.
- Simple mistakes such as listing your company name on one document as “ABC Autos, LLC” and as “ABC Autos, L.L.C.” on another document can set the application process back weeks.
Step #2 Obtain A Permanent Business Location:
- The state of New York requires a permanent and clearly defined physical barrier from other businesses that share your location is necessary. Separate entrances, signs, display areas and offices are a must to obtain approval for your dealership location.
- A permanent USPS approved mailbox at the business address is a necessary.
- You must have town or city approval for your location to be a used car dealership and you need to follow any and all local zoning regulations.
- Here is a complete list of New York Requirements for Dealers & Transporters.
- Typical rents for a used car dealership in New York range from $1,000 to $5,000 per month depending on the location.
Step #3 Decide Upon And Set Up A Business Entity:
- You must decide if you want to conduct business as a Sole Proprietor, a Partnership, a Limited Liability Company (LLC), or a Corporation (Inc). Each entity has advantages and dis-advantages. Consult an attorney to discuss what is best for you. There are many online resources to help with your decision.
- You can visit the NY State Department website for information on setting up New York LLC’s and Corporations.
- You will also need to obtain an Employer Identification Number from the IRS.
Step #4 Procure State Required Items:
- Surety Bond – The state of New York requires a Surety Bond in the amount of $20,000 (up to 50 motor vehicles sold) or $100,000 (more than 50 motor vehicles sold)
- Automobile Liability Insurance – New York requires all used car dealers to carry liability insurance before they will issue dealer plates. The typical cost for Dealer Liability Insurance usually runs from $1,800 up to $12,000 per year depending on the location and total inventory.
- Location Liability Insurance – The landlord will most likely require liability insurance on the location and usually costs $1,000 to $5,000 per year depending on the location.
- Sales Tax Number – All New York used car dealers need to obtain a Sales Tax ID number, which can be obtained from the NY Department of Tax & Finance.
- Dealer Starter Kit – You will need to purchase the NY approved dealer starter kit.
- Business Signage – All New York used car dealerships need to have a proper sign. The dealership sign must be permanently mounted and visible at all times from the nearest street or highway.
- Workers Compensation Insurance – If you plan on having any employees you must obtain workers compensation insurance at the NY State Workers Compensation Board.
Step #5 Submit Application & Wait:
- Dealer Application – You must submit the Original Facility Application (VS-1)
- It is a good idea to check, double check and then triple check your New York Dealer License application and all the supporting documents before sending everything to the state. Any mistakes on the application or supporting documents can add weeks to the approval process.
- Dealer Application Fees – New York has two separate fees
- $37.50 Non-refundable NY Dealer License Application Fee
- $450.00 Refundable Dealer License Registration Fee
- Mailing Address – Mail your application, required documents and fee to:
NYS DMV
Bureau of Consumer & Facility Services
Application Unit
PO Box 2700
Albany, NY 12220-0700
- On-Site Inspection – When the Automotive Facilities Inspector (AFI) inspects your location, they will be looking for:
- Dealer Starter Kit
- Permanently Mounted Sign(s) that must visible from the nearest street or highway.
- Photo ID’s for every person named on the application
- A clearly defined display lot with permanent physical barriers
- A mailbox at the location dedicated to the dealership.
- A secure method securing important items & documents (locking cabinet, safe, etc)
- Desk, Chairs, Heat, Electricity, Computer, File Cabinet, Phone, etc.
- Hurry Up & Wait
- The typical waiting period for an inspector to get out to your location is usually 4 to 6 weeks.
- Once the inspection is completed, the waiting period to receive the actual Used Car Dealer License is usually 2 to 4 weeks.
Conclusion:
- The initial startup cost to open your own used car dealership in New York will range from $8,000 to $18,000 to get everything set up.
- The ongoing monthly expense to have your own NY used car dealer license will cost about $2,000 to $5,000 per month.
- The amount of time to get a NY Used Car Dealer License can be as short as 6 weeks or as long as 3 months depending upon many factors.
- Obtaining your own New York Dealer License in order to attend dealer only auto auctions can be very expensive and take a long time.
- An alternative to obtaining your own dealer license in order to attend dealer only auto auctions is to join a Co-op Dealership Program as outlined below.
3 Programs to Choose From
$199 Per Month + $199 Per Car**
AUCTION ACCESS ONLY (NO DEALER PLATE)
– $597 Total Start Up Cost (1st & Last Month + $199 Sign Up Fee*)
– $199 Per Month + $199 Per Car**
– Access To Dealer Only Auto Auctions (Auction Deposit Required***)
– No Dealer Plate (Cars Must Be Towed)
– Become A Member Of A Local Co-op Dealership
– Bond & Rent Included
– Unlimited Free Support, Coaching & Mentoring
– Month To Month Contract (Cancel Anytime)
– Legal In All 50 States
– 2 to 3 Day Setup Time
*The $199 sign up fee is non-refundable.
**All title processing fees are separate.
***Call for details.
$399 Per Month + $99 Per Car**
AUCTION ACCESS & (1) DEALER PLATE
– $798 Total Start Up Cost (1st & Last Month + $199 Sign Up Fee*)
– $399 Per Month + $99 Per Car**
– Access To Dealer Only Auto Auctions (Auction Deposit Required***)
– (1) Fully Insured Dealer Plate (Plate Deposit Required***)
– Become A Member Of A Local Co-op Dealership
– Bond, Insurance & Rent Included
– Unlimited Free Support, Coaching & Mentoring
– Month To Month Contract (Cancel Anytime)
– Legal In All 50 States
– 2 to 3 Day Setup Time
*The waived $199 sign up fee is non-refundable.
**All title processing fees are separate.
***Call for details.
$599 Per Month + $0 Per Car**
AUCTION ACCESS & (1) DEALER PLATE
– $1198 Total Start Up Cost (1st & Last Month + $199 Sign Up Fee*)
– $599 Per Month + $0 Per Car**
– Access To Dealer Only Auto Auctions (Auction Deposit Required***)
– (1) Fully Insured Dealer Plate (Plate Deposit Required***)
– Become A Member Of A Local Co-op Dealership
– Bond, Insurance & Rent Included
– Unlimited Free Support, Coaching & Mentoring
– Month To Month Contract (Cancel Anytime)
– Legal In All 50 States
– 2 to 3 Day Setup Time
*The waived $199 sign up fee is non-refundable.
**All title processing fees are separate.
***Call for details.
Frequently Asked Questions
Is this legal?
Yes..! And the reason is the way we legally structure our Co-op Dealerships. All of our dealerships are setup as Limited Liability Companies (LLC’s) and we simply make you a member of that LLC. This gives you the legal right to buy and sell cars for the dealership. All vehicles are bought and sold under the dealership name, yet you keep all the profits that you generate because you are a member of the LLC.
Can I sell retail to the public?
Remember, you are not personally selling cars with our program..! The dealership that you are a member of is selling the car. And all of our Co-op Dealerships have retail dealer licenses, so yes cars can be sold directly to the public.
Can I sell cars out of my home?
Remember, you are not personally selling cars with our program..! The dealership that you are a member of is selling the car..! The dealership manager conducts the paperwork for each sale at the dealership location. You, as the member are simply delivering the car to the customer. We do not recommend bringing strangers to your home for safety reasons.
How many dealer plates do I get?
Each member gets one (1) fully insured dealer plate.
Can I attend dealer only auctions?
Yes, as a member of our Co-op Dealership Program, you will have access to auctions like Manheim.com and Adesa.com as well as most independent auctions. Be aware that you the member are responsible for any and all auction fees including but not limited to signup fees, run fees, annual renewal fees, arbitration fees, etc.
Do I have to pay sales tax on the cars I buy?
No. Licensed car dealers are exempt from paying sales tax on any vehicles they purchase.
Do I have to pay Income Tax with your program?
Yes. At the end of the year the Co-op Dealership will give you a 1099 for your gross sales. You are required to keep track of all your expenses and your cost of goods sold. You will then need to pay income tax on the net profit from your activities. If you operate as an individual you will need to file a Schedule C with your 1040. We are able to “1099” a valid Limited Liability Company or Corporation if you wish.
Where will my Co-op Dealership be located?
We have Co-op Dealerships located nationwide and we try to place you on a dealership as close to you as possible. Be aware that you do not need a used car dealer license from your state to buy and sell cars in your state. A used car dealer license transcends state lines. A dealership in any state can legally sell cars nationwide, to anyone with no restrictions..! We strongly suggest our members to educate themselves with Interstate Commerce Laws and Dormant Commerce Clause.
Can I use an out-of-state dealer license in my state?
Remember, you are not personally selling cars with our program..! The dealership that you are a member of is selling the car..! You are not “using” our dealer license, as that would be illegal. You will be a member of a dealership with a valid dealer license. And that dealership has the legal right to sell cars to anyone in any state. Dealerships are not restricted to just buying and selling cars within their state. AGAIN, you are not “using” a dealer license to “sell” cars in your state..! That is not what our program is about..!
How long does it take to get set up with your program?
We get people set up within 24 to 48 hours.
Do I have to obey local laws with your program?
Yes..! Using our Co-op Dealer License Program does not absolve you from adhering to local, state or federal laws.
Can I use the dealer plate for personal use?
No..! The dealer plate that is issued is for business use only. Business use means things like transporting a car from the auction to the dealership, or transporting a car from the dealership to a mechanic, and/or test-driving with a customer. Driving from a restaurant to your home, or running daily errands is not business use and you are responsible for any and all tickets as a result of such misuse.
How much insurance coverage comes with the plates?
Our program provides $100,000 liability and $30,000 of physical damage with a $2,000 or 10% deductible, which ever is greater. Physical damage covers fire, theft, comprehensive and collision. If you have questions about the amount of insurance coverage or have a special request for more insurance please feel free to call our office.
How long have you guys been in business?
The company behind DealerLicense.net has been providing the Co-op Dealership Solution since 1990.
Can other people use the dealer plate issued to me?
No. The dealer plate issued to you is for your use only.
Can I share the license with other people to help cut my cost?
No. Only the Co-op Member is allowed to buy and sell cars under our program.
Are there any other fees I need to know about?
The monthly and $99 per car are the only fees to be a part of our Co-op Dealership Program. However, there are other fees to consider such as tax, title and registration fees as well as FedEx fees, etc… These fees are usually the responsibility of the customer purchasing the car. The total fees involved with a vehicle purchase is usually less than $200 per car.
Do I need to have a location to be part of your program?
No you do not need a location to be part of our program. All our Co-op Dealerships already have a location from which they operate. However, you will need some place to store and/or work on the cars you purchase, but you can not display for sale any car, at any location, other than the approved dealership location.
Is the dealership set up in my name?
No. All our Co-op Dealerships are already existing and have a name. Remember, we are not setting up a dealership just for you. Rather, our Co-op Dealerships are comprised of multiple independent contractors, just like you.
Will my Co-op Dealership be located in my state?
We make every attempt to place members with a dealership in their state, but this is not always possible due to availability and other circumstances beyond our control.
We do have enough dealerships located throughout the US that we can typically place you with a Co-op Dealership in a neighboring state, if your state is not available.
Is this a retail or wholesale dealer license?
All of our Co-op Dealerships have retail licenses. This allows you to sell cars both wholesale (to other dealers), or retail (directly to the public).
Do I need to have a corporation or LLC to use your program?
No. All of our Co-op Dealerships are already setup as Limited Liability Companies (LLC’s), affording you complete corporate protection.
How long do I have to sign up for?
Our program operates on a month-to-month basis. We do collect a first and last two months payment upfront, so you are committing to at least three months. However, you can quit at anytime and your last two months are already paid.
When do my monthly payments start?
Your regular monthly payments start one month after your “Start Date“.
Your official “Start Date” begins about ten days after you have gained auction access and received your dealer plate.
This 10 day grace period gives you the time to research and visit dealer auctions you might be interested in attending, as well as allowing us to work out any problems and/or issues that might arise.
This ten day grace period ensures a full month worth of Co-op Dealership membership.
What is the corporate structure of the dealership?
Our Co-op Dealerships are setup as either Limited Liability Companies (LLC’s) or as Limited Partnerships (LP’s).
Am I liable for other member’s actions?
No. All of our Co-op Dealerships have protections in place such as well-written operating agreements, surety bonds, and in-house legal council specializing in our exact Co-op Dealer System.
Our legal structure is rock-solid and focused on protecting the dealership as well as each individual member.
We have successfully defended our Co-op Dealership Business Model over the last 28+ years nationwide and all of our Co-op Dealerships are professionally managed, on a daily basis, to comply with all Federal, State and local laws.
Rest assured that you are 100% protected with our system.
Member Testimonials
I am honored to write a testimonial for DealerLicense.net!
Tim helped me get into the used car business back in the 1990’s and was a huge part of my success in the used car business.
Even though I am not in the business any more I fondly remember the trips to the local dealer only auto auctions like Adesa in Framingham Mass and the Lynnway Auto Auction.
If you want to get into the used car sales business, this is the best company to do it with and Tim Putnam is the best person to teach you.
Congrats on your new site Tim!!!
I’ve been with Tim through all his growth and expansion. I came on first as a Co-op Dealer member and moved up to being a manager for them within two years. Great company to deal with. Always professional and always ahead of the curve. Looking forward to the future with the new DealerLicense.net website. Thanks a million for letting me be one of your managers!
Rob and Patti joined our company back in 2004 as Co-op Members and quickly learned the used car business.
Rob, a successful real estate appraiser and Patti, a veteran in the banking industry, came across our used car dealer license business opportunity and saw the potential to build a business that would produce high income with little effort.
They eventually inquired about becoming partners and opening their own Co-op Dealership and in late 2007 started their own Co-op used car dealership in Ohio.
Rob and Patti have quickly built that Co-op used car dealer license into one of our most successful Co-op Dealerships and still run it today!
Being a seasoned entrepreneur and professional investor, the moment I heard about the Co-op Dealer License Business Opportunity I was instantly intrigued!
After some due diligence and quick negotiations I was the first “outside” investor to buy one of an already established Co-op Used Car Dealership.
Unlike all of the other managers who are usually members first, I was a total outsider to All Ventures, Inc. and its corporate culture.
Well I’m happy to report that I’ve been with All Ventures since 2005 and it’s been a great experience..!
I’m totally excited about the new website DealerLicense.net and can’t wait to see what the future holds for this great opportunity.
Todd J. has been with us since 1999 and is one of our most successful Co-op used car dealers!
Currently located in South Carolina, Todd has opened and managed many used car dealerships for us…literally coast to coast. The first used car dealership Todd opened and managed was located in Oregon, which he managed for about 3 years.
Todd then went on to open dozens of used car dealer licenses in Texas and other states for our company. Todd was there during the beginning and was one of the first-ever Co-op Dealer license managers.
Todd currently owns and operates a highly successful Co-op Dealership located in South Carolina and Not only does he manage 12 to 15 dealers members but he also buys and sells forty to sixty cars per month…all by himself!!!
Todd is the perfect example of the success that anyone can have with our Co-op Dealer License business opportunity. Todd literally was living out of his car and had less than $500 cash when he started with our company.
Today Todd earns a six-figure income and threatens retirement everyday..!!
Marsha is our “Girl” in California!
A seasoned veteran who has been with us since 2004, Marsha continues to set the bar higher and higher every year.
A single parent, Marsha joined our company with dreams of owning her own business and controlling her own destiny.
While working full time for Restoration Hardware, Marsha started a Co-op used car dealer license in California and proceeded to build her Co-op used car dealer license business opportunity in order to escape the corporate nightmare.
January 6th, 2008 was Marsha’s last day with Restoration Hardware and her first day going full-time with the Co-op Dealership business opportunity as a Partner/Manager of her own Co-op used car dealer license.
The only thing better than telling corporate America “good-bye” was telling her son “hello” more often..!
For anyone who thinks this company does not work or is a scam, just spend a few minutes on the phone with Marsha, she will straighten you out in no time!
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