Missouri Auto Dealers License Frequently Asked Questions
1. What can I do with a Missouri Auto Dealers License?
2. Do I need a Missouri Auto
Dealer License to get into Dealer Only Car Auctions?
3. Can I use my Missouri
Auto Dealers License to buy vehicles at dealer only auctions, then resell
them on Ebay or Craigslist.org?
4. How much money can I make with a MO Auto Dealer License?
5.
Will I
be allowed to sell vehicles overseas with my Missouri Auto Dealers
License?
6.
Can I use my friends Missouri Auto Dealers License to get into an
auction, have her buy a vehicle for me to sell?
7.
Can I buy a car from someone,
ask them to sign the title, and leave the rest of the title blank?
8.
Do I have to attend a Dealer Educational Seminar before I get a Missouri Auto Dealer License?
9.
What is a Dealer
Surety Bond, how much are they, and where can I get one?
10.
What type of dealer
insurance do I need for my Missouri Auto Dealers License, what does it cost,
and where can I get a quote?
11.
Once I obtain my Missouri Auto Dealers License,
where can I find Missouri Dealer License forms?
12.
I have a commercial location in mind for my dealership, what next?
13.
Can I have a friend or business partner attend the seminar with me?
14.
What is a
Dealer Floor Plan?
15.
What is Sub-Prime Financing?
16.
What is a Buy Here Pay Here
Car Dealership?
17.
How can I get my Missouri Auto Dealers License on the same day as the Dealer Seminar?
18.
Do I have to sell a certain number of vehicles to keep my dealer's license?
19.
Do I have to live in Missouri to obtain a Missouri Auto Dealers license?
20.
After I get my Missouri Auto Dealers License, can I sell cars on Sunday?
21.
How much will it cost to get my
Missouri Auto Dealers License?
22. Do I have to take any kind of test at my Missouri Dealer Seminar?
23.
I have other questions about obtaining a
Missouri Auto Dealer License, what should I do?
What can I do with a Missouri
Auto Dealers License?
Your Missouri Auto Dealers License will allow you to enter almost every
dealer only vehicle auction throughout the United States and buy vehicles at
wholesale prices. Once you obtain your Missouri Auto Dealers License, your
local auto auction should be able to issue you an Auction ID Access card.
After you are licensed, you can also obtain this card by going directly to
the
Auction Access website. You will be able to use this card to get into
most dealer only auctions in every
state. You can purchase vehicles at these auto auctions and sell them for a
profit. Your dealer's license will also allow you to purchase vehicles
without titling them. When you sell a car, you will be able to sign the
title over to the new owner. You can also bid on cars online throughout the
country through auto auctions that have online bidding capability. You can
also gain access to many insurance and salvage auctions that are only open
to licensed dealers. A dealers license can give you a never ending stream of
revenue.
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Do I need a Missouri Auto Dealers License to get into Dealer Only Car
Auctions?
Yes. You must obtain a Missouri Auto Dealers License before you
are allowed access to Dealer Only Car Auctions. Once you obtain a MO Auto
Dealer License, you can enter every Dealer Only Car Auction in Missouri,
every Dealer Only Car Auction throughout the United States, and many Dealer
Only Car Auctions in other countries.
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Can I buy vehicles at Dealer Only Car Auctions, then resell them on Ebay
or Craigslist.org?
Absolutely. Once you obtain your Missouri Auto Dealers License, you can buy
vehicles at Dealer Only Auctions, then sell to individuals or dealers all
over the country. You can even sell your vehicles to individuals or dealers
in other countries. Its totally legal with your Missouri Auto Dealer
License. Having a MO Auto Dealers License offers you unlimited selling
opportunities.
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How much money can I make with a Missouri Auto Dealers License?
That's an excellent question. Many people with a Missouri Auto Dealer
License choose to sell only a few vehicles per year, which can still be
quite profitable. Most dealers expect to make at least a $1500.00 to
$3000.00 profit on each vehicle they sell. Other dealers choose to "Go For
It" and sell hundreds of vehicles per month. Some dealers right here in
Missouri have consistently earned $200,000 to $300,000 per month! A MO Auto
Dealers License will allow you sell one car a month or five hundred cars a
month. As a licensed Missouri Auto Dealer, your earning potential is
unlimited.
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Will I be allowed to sell vehicles to people in other countries with a
Missouri Auto Dealers License?
Yes. You can use your Missouri Auto Dealers License to sell vehicles to
individuals or dealers in any country in the world. Countries all over the
world are experiencing a huge lack of vehicle inventories and exporting cars
overseas has become an extremely profitable dealer niche. The first thing to
do is to contact a reputable transportation company that has extensive
experience exporting vehicles to other countries. You may also want to
develop a business relationship with a single car dealer or distributor in
another country which would allow you to export a large number of vehicles
with only one business contact. Many countries in Europe, South America,
Africa, and Asia are suffering from a substantial lack of vehicle
inventories leading to much higher profits per vehicle. An aggressive
entrepreneur with a Missouri Auto Dealers License can utilize this growing
overseas opportunity for incredible financial rewards. To find a company
that offers nationwide vehicle delivery or export services for Missouri
Dealers, just check the Missouri Dealer Transportation page.
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Can I use my friend's Missouri Auto Dealers License to get into an auction,
have her buy a vehicle for me, then sell it for a profit?
No. A person must have there own dealers license in order to purchase a
vehicle from a Dealer Only Car Auction then sell it for a profit. Any person
without a MO Auto Dealer License that purchases a vehicle at dealer only
auction, then sells it without tax, tilting, and licensing that vehicle, is
operating as an illegal dealer. If you operate as an illegal dealer in
Missouri you can be charged with a Class D Felony and the person that
allowed you to operate illegally under their license will have their dealers
license permanently revoked. You can never, ever operate under another
person's Missouri Auto Dealers License.
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Can I buy a car from someone, ask them to sign the seller's signature box on
the title, and leave the rest of the title blank so I can resell it?
Never. This is called an "Open" title. It is also called a "Blank" or
"Skipped" title. Leaving a portion of the title blank allows an illegal dealer to
resell a vehicle without paying taxes or "Skipping" the taxes on that vehicle. Possession of a
blank, open, or skipped title is against the law in all fifty states and is
now a felony in most states. When
you obtain your Missouri Auto Dealers License, you will be able to purchase
a vehicle, fill out the back of the title completely, then use your Dealer
Number to assign the ownership of the vehicle to the next buyer for a
profit. Never, ever possess an incomplete title and never purchase a vehicle
from someone with a blank title, they are acting as an illegal dealer. With
your Missouri Auto Dealers License, assigning a title is completely legal.
Find out more about getting your Missouri Auto Dealers License.
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Do I have to attend a Dealer Educational Seminar before I get a Missouri Auto Dealer License?
Yes,
Missouri Senate Bill 747
requires all Missouri Automobile Dealers License applicants applying for a
dealers license for the first time to attend the training course. Missouri
Dealer Seminars is a state approved Dealer Educational Seminar Provider.
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What is a Dealer Surety Bond, how much are they, and where can I get one?
You must provide an original surety bond, or irrevocable letter of
credit, in the amount of $25,000 before obtaining a Missouri Auto Dealers
License. These legal documents protect
your customers against any fraudulent activity conducted by your dealership
and can satisfy any legal claims against your dealership by unsatisfied
customers. Don't worry, if you operate your business with complete
integrity, honesty, and the highest ethical standards, you will probably
never have claims against your Dealer Surety Bond or Irrevocable Letter of
Credit. To obtain an Irrevocable Letter of Credit, you will need to contact
your banker. Some banks require $25,000 worth of assets before issuing a
letter of credit. Most dealers obtain the Dealer Surety Bond. It is very
easy to obtain a dealer surety bond. An insurance agent or bonding company
will be able to provide you with an original surety bond. The price for your
Dealer Surety Bond depends on your credit score. If you have good credit,
the price for your bond should be around $150.00. If you have bad credit,
the cost of obtaining your bond could be much higher. To obtain a Missouri
Dealer Surety bond, please call 816-676-1000.
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What type of dealer insurance do I need, what does it cost, and where can I
get a quote?
In order to obtain a MO Auto Dealer License you will need a Dealer Insurance
Garage Policy. Your Dealer Garage Policy needs to be in effect before you
are granted a Missouri Dealers License. Dealer Garage Insurance is a very
specialized insurance that is only sold by a few companies nationwide. A
Dealer Garage Insurance Policy will cover your vehicles when they being
driven for demonstration purposes by your customers. It will also cover you
while you are driving vehicles back and forth to auctions. Most Dealer
Garage Insurance Policies cover you if a customer is injured on you lot.
Dealer insurance can be very expensive and newly licensed dealers normally
pay the highest rates. A liability policy can start at around $150.00 per
month depending on your location and the number of Dealer Plates that you
possess. Full comprehensive, collision, theft, hail damage, and errors &
omissions Dealer Garage Insurance Policies can cost much more. Just
remember, the longer you hold a Missouri Dealer License, your dealer
insurance rates should go down. You may obtain your Missouri Dealer Garage
Policy, by calling 816-676-1000.
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Once I obtain my Missouri Auto Dealer License, where can I find Missouri
Dealer License forms?
Keeping up on your paperwork will be a big part of the day to day operations
of your car dealership. When you receive your Missouri Dealer License you
will be required to keep copies of every single document that is used in the
operation of your Missouri Car Dealership. The most important piece of
office equipment you will need is a copy machine. Copies of all documents
related to your business will need to be kept on file, ready to produce for
the Missouri Department of Revenue at a moments notice. After you obtain
your Missouri Auto Dealers License, you will also need bill of sale forms,
Federal Trade Commission Buyers Guides, title riders, odometer disclosure
statements, secure power of attorney documents, and many other dealer forms.
You can find most of the forms you need on the
Missouri
Dealer Forms page.
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I have a commercial location in mind for my dealership, what next?
Call your local city or county zoning board to make sure you can operate an
automotive business at this location. You want to make sure any location you
have chosen for your new dealership can meet all the zoning requirements
before you attempt to obtain a Missouri Auto Dealer License.
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Can I have a friend or business partner attend the seminar with me?
Yes. The Dealer Educational Seminar tuition is $249.00 for the first person attending and $149.00 for each additional person that attends the class. Each person attending a Missouri Dealer Educational Seminar will be issued a
separate Certificate of Completion
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What is a Dealer Floor Plan?
A Dealer Floor Plan is a loan for your vehicle inventory. A Dealer Floor
Plan is a great way to obtain the funds you need so you can start purchasing
vehicles as soon as you receive your Missouri Auto Dealer License. Many
companies offer car dealerships lower interest rates and special financing
options that are designed specifically for the Missouri Car Dealership.
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What is Sub-Prime Financing?
Sub Prime Financing is the process of finding loans for your customers with
less than perfect, or bad credit. Many companies have loan programs that are
designed to assist car dealers in obtaining loans for these customers. These
loan programs generally have higher interest than other loans, higher
commissions for the originating dealer, and some companies even allow
dealers to charge extra points during the loan application.
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What is a Buy Here Pay Here Car Dealership?
A Buy Here Pay Here Car
Dealership is one of the most lucrative types of Missouri Car Dealerships.
When you operate a Buy Here Pay Here Car Dealership in Missouri, you are
financing your vehicles to customers that are usually not able to obtain a
bank loan. Very often you will purchase a vehicle at an auction for around
$1000.00. You can take it back to your dealership and mark it up the Buy
Here Pay Here retail of $4995.00. You might require the customer to give a
down payment of $500.00 to $750.00 then finance the rest of the payments for
two years. Many Car Dealers right here in Missouri net $4000.00 to $5000.00
for every vehicle they finance. You can even charge your own interest rate
while having the payments automatically deducted from your customers
checking accounts every two weeks. If you choose to allow your customers to
mail their payments directly to your Missouri Car Dealership, many companies
offer Missouri Car Dealers vehicle retarder switch installation. If a
customer has failed to make payments as scheduled, you can send out a radio
signal that keeps the vehicle from starting. The customer then must catch up
there payments in order for there vehicle to be restarted. Missouri Car
Dealers that use vehicle retarder switches report a payment success rate of
over ninety-eight percent. To find a list of companies that assist your
Missouri Buy Here Pay Here Car Dealership, click here
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How can I get my Missouri Auto Dealers License on the same day as the Dealer Seminar?
If you have completed the 12 Steps To Getting Your Dealers License, the only paperwork you will need to be licensed is your Dealer Educational Seminar Certificate of Completion. You can take your completed paperwork, along with your Certificate of Completion, and
drive to Jefferson City after your class. You will then pay your licensing fees and be issued a Missouri Motor Vehicle Dealer License, and a set of Dealer Tags. You will then be fully licensed to legally sell motor vehicles for a profit. You may also mail in your paperwork any time within 12 months after the class.
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Do I have to sell a certain number of vehicles to keep my dealer's license?
Yes, the Missouri Department of Revenue requires dealers to sell a minimum
of 6 vehicles per year. Newly licensed dealers will be required to sell 1
vehicle every 2 months during the first year in operation. Any dealer that
fails to sell 6 vehicles per year will not be allowed to renew there license
for a period of one year.
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Do I have to live in Missouri to obtain a Missouri Auto Dealers license?
No, you do not have to be a Missouri resident in order to obtain a Missouri
Auto Dealers license, although your dealership must be located within Missouri.
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After I get my Missouri Auto Dealers License, can I sell cars on Sunday?
No, Missouri law requires all Missouri Dealerships to be closed on Sundays.
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How much will it cost to get my Missouri Auto Dealers License?
Missouri
Dealer License fees vary depending on the number of Dealer Plates you order,
along with several other factors. To find out what it will cost to get your
Missouri Auto Dealers License, check the
Missouri Dealer License Fees Page.
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Do I have to take any kind of test at my Missouri Dealer Seminar?
No, there is not any type of test at your Missouri Dealer Seminar. It is
just a friendly, casual question and answer session. After you sit through
the course you will be issued a Certificate of Completion to show the
Department of Revenue you attended the class.
I have other questions about obtaining a Missouri Auto Dealer License, what
should I do?
Contact the Missouri Department of Revenue at 573-751-8343 or find out more about obtaining
your Missouri Auto Dealers License by clicking on the
Missouri Auto Dealer
License Page.