Ideas on where to get a licence for auctions

**mgm32837** · 04-25-2007 12:08 AM

I am looking to get a license to be able to buy cars from the auction and sell them independently. I live in Florida so how would I obtain this license. Do I need a dealer license first or can I just get this one only. Any help would be appreciated.

Thanks

**The Stealthy One** · 04-25-2007 06:42 AM

I am not sure on the specifics in Florida. But I do know that in Virginia, if you are selling less than 7 cars per year, you do not need a license. I am not sure where you would got to get the license, but I would recommend checking with your courthouse as a starting point. If they do not actually do the licensing, perhaps they could point you in the right direction.

Good luck!

**LiL1Penny** · 04-25-2007 07:55 AM

I am currently in the process of obtaining one in Indiana. I know in Indiana we had to have an office building, certain size of parking lot a sign visable one the street and a lot of other requirements. Luckily the building we are renting used to have a car dealership so we already knew we would meet all of the requirments.

Here is what I found to obtain a Florida Dealer's license:

In Florida, motor vehicle dealers are licensed and regulated by the Division of Motor Vehicles under Section 320.27 Florida Statutes.

The Law

Florida law states that any person, firm partnership, or corporation that buys, sells, offers for sale, displays for sale or deals in three or more motor vehicles in any 12-month period is presumed to be a motor vehicle dealer and must have an appropriate license issued by the State.

License Types

There are four classes of licenses issued to motor vehicle dealers. They are:

Independent Dealer--for a person dealing in used motor vehicles only. This license permits the licensee to transact business at retail or wholesale.

Franchise Dealer--allows the licensee to sell new motor vehicles under an agreement with a manufacturer. This license also permits the licensee to sell used motor vehicles.

Wholesale Dealer--licensees may only buy from, sell to, and deal at wholesale with other licensed dealers.

Auctions--are licensed to sell, on behalf of licensed dealers, through the bid process. Auctions may not sell retail.

Application

Before going into the business of selling motor vehicles, a person must submit a completed application, with required documentation and fees. License applications may be obtained from any Division of Motor Vehicles' regional office.

General DMV Requirements

Approval of business location by a DMV representative.
Completed application form.
Fee of $300 for each main location.
$25,000 surety bond or letter of credit.
Garage liability insurance.
Copy of lease for location or proof of ownership.
Dealer training seminar certificate.
Registration of fictitious trade name.
Copy of corporate papers.
Sales tax number.
Federal employer identification number.
Fingerprints and applicable fees. ($47 per person).
Note: Franchise dealers must meet certain additional requirements.

Failure To Obtain A License

Any person violating these licensing requirements is guilty of a second-degree misdemeanor, punishable by up to six months in jail and/or fine of $500. Such person will also be liable under civil law for violation of Florida’s Deceptive and Unfair Trade Practices Act, subject to fines of up to $5000 per violation, and may face a permanent injunction issued by a circuit court.

More Information

If you have questions about application procedures and licensing requirements, contact the DMV regional office.