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I’m toying with the idea of applying for a Texas used vehicle license. I have access to commercial property on a busy intersection, have office area, etc. I’ve went over the basic requirements and I know I’ll need a surety bond. I only want to deal with maybe a couple cars on the side occasionally and maybe make an extra buck on the side and maybe buy something for personal use. For anyone who has a license here, what are things to beware of, advice, etc.?
 

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Rev is the guy to ask as he is in your State, I have one for Florida. We had to get it because the Pawn Shop my buddy owns that I part-time in sells more then 3 cars a year and they check us to make sure we are licensed. Banks and Credit Unions here are exempt.

People that buy at Auctions and sell in their yard are outside the law also but it seems DMV never checks. Dave
 

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I’m toying with the idea of applying for a Texas used vehicle license. I have access to commercial property on a busy intersection, have office area, etc. I’ve went over the basic requirements and I know I’ll need a surety bond. I only want to deal with maybe a couple cars on the side occasionally and maybe make an extra buck on the side and maybe buy something for personal use. For anyone who has a license here, what are things to beware of, advice, etc.?
Beware of Temporary Tags, don't do it, no reason to stick your neck out, take the buyer right to the DMV!

In my State (Florida) you only have to be open 1 hour per week and it has to be on your signage, but you better be there during that time as that is when DMV will come out to check on you!

Dave
 

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Beware of Temporary Tags, don't do it, no reason to stick your neck out, take the buyer right to the DMV!

In my State (Florida) you only have to be open 1 hour per week and it has to be on your signage, but you better be there during that time as that is when DMV will come out to check on you!

Dave
In Orange County Florida, dealers are not allowed to take their customers to the DMV.

I was a dealer for 15 years....my signage had “ by appointment only”. The only time I saw DMV at my location was for the initial inspection to get my license.

I’m sure Texas has different requirements
 

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In Orange County Florida, dealers are not allowed to take their customers to the DMV.

I was a dealer for 15 years....my signage had “by appointment only”. The only time I saw DMV at my location was for the initial inspection to get my license.

I’m sure Texas has different requirements
Hmmm. Sounds like a good idea...
 

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I have an Indiana Used License, sounds like our requirements must be more strict, here's the list:




All dealers are subject to the following licensure requirements:

  • $25,000 bond, on State form 53966 (R5/6-15).
  • Liability insurance in the following amounts:
    • $100,000 for bodily injury to one (1) person.
    • $300,000 for bodily injury per accident
    • $50,000 for property damage
  • National Criminal History Background Check no more than 60 days old for each dealer owner and dealer manager.
    • Dealer manager: individual who works at the established place of business of a dealer and who is responsible for and is in charge of the day to day operations, including the management, direction, and control of the dealership.
    • Dealer owner:​
      • For a licensed or applicant dealer, other than a manufacturer, that is a corporation, each officer, director, and shareholder having a ten percent (10%) or greater ownership interest in the corporation.
      • If no officer, director, or shareholder has a ten percent (10%) or greater ownership interest in the corporation, one (1) or more officers, directors, or shareholders designated in writing by the board of directors.
      • If the licensed or applicant dealer, other than a manufacturer, is a sole proprietorship, the proprietor.
      • If the licensed or applicant dealer, other than a manufacturer, is a partnership, each partner.
      • If the licensed or applicant dealer, other than a manufacturer, is a limited liability company, each member of the company.
      • For a licensed or applicant manufacturer, one (1) or more officers, directors, or shareholders designated in writing by the manufacturer.
  • An established place of business
    • Premises owned or leased and continuously occupied by a dealer licensed or applying to be licensed for the primary purpose of the business activity for which the dealer is licensed or applying to be licensed
    • Cannot be a residence, tent, temporary stand, or permanent quarters only temporarily being occupied
New and Used Dealers are subject to the following additional requirements regarding their established place of business:

  • At least 1,300 square feet
  • Able to accommodate the display of a minimum of 10 vehicles
  • Well-lit during hours of operation
  • Have and display customer parking areas adequately surfaced with asphalt, concrete, rock, or substance that will not change with weather conditions
  • Have a dealer office that is:
    • housed at the dealer's established place of business
    • at least one hundred (100) square feet in size
    • equipped with office furniture such as a desk, chairs, and filing cabinets
    • reflective of functional use and operation of the license
    • served with utilities such as:
      • electricity;
      • lighting;
      • heat;
      • operational plumbing; and
      • a business telephone
  • Have a conspicuous, permanent sign identifying the dealer by the name in which the dealer is licensed and the dealership's hours of operation
  • Be manned and open to the public at least 30 hours each week or at least 20 hours each week and a telephone answering, paging, or mobile service offered during the remaining 10 hours each week, the number for which is identified on the business sign
And yes, they do come around and check, but after a couple visits not so much, haven't seen one of them in over 5 years (knock on wood)
 

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as much as a shit show California is flipping cars is easy, all the messicans and gypsy's do it, buy car have owner sign title, then advertise car on craigslist sell it hand signed title to new owner, plates stay on the car...dmv cant keep up with all the flippers
 

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I have an Indiana Used License, sounds like our requirements must be more strict, here's the list:




All dealers are subject to the following licensure requirements:

  • $25,000 bond, on State form 53966 (R5/6-15).
  • Liability insurance in the following amounts:
    • $100,000 for bodily injury to one (1) person.
    • $300,000 for bodily injury per accident
    • $50,000 for property damage
  • National Criminal History Background Check no more than 60 days old for each dealer owner and dealer manager.
    • Dealer manager: individual who works at the established place of business of a dealer and who is responsible for and is in charge of the day to day operations, including the management, direction, and control of the dealership.
    • Dealer owner:​
      • For a licensed or applicant dealer, other than a manufacturer, that is a corporation, each officer, director, and shareholder having a ten percent (10%) or greater ownership interest in the corporation.
      • If no officer, director, or shareholder has a ten percent (10%) or greater ownership interest in the corporation, one (1) or more officers, directors, or shareholders designated in writing by the board of directors.
      • If the licensed or applicant dealer, other than a manufacturer, is a sole proprietorship, the proprietor.
      • If the licensed or applicant dealer, other than a manufacturer, is a partnership, each partner.
      • If the licensed or applicant dealer, other than a manufacturer, is a limited liability company, each member of the company.
      • For a licensed or applicant manufacturer, one (1) or more officers, directors, or shareholders designated in writing by the manufacturer.
  • An established place of business
    • Premises owned or leased and continuously occupied by a dealer licensed or applying to be licensed for the primary purpose of the business activity for which the dealer is licensed or applying to be licensed
    • Cannot be a residence, tent, temporary stand, or permanent quarters only temporarily being occupied
New and Used Dealers are subject to the following additional requirements regarding their established place of business:

  • At least 1,300 square feet
  • Able to accommodate the display of a minimum of 10 vehicles
  • Well-lit during hours of operation
  • Have and display customer parking areas adequately surfaced with asphalt, concrete, rock, or substance that will not change with weather conditions
  • Have a dealer office that is:
    • housed at the dealer's established place of business
    • at least one hundred (100) square feet in size
    • equipped with office furniture such as a desk, chairs, and filing cabinets
    • reflective of functional use and operation of the license
    • served with utilities such as:
      • electricity;
      • lighting;
      • heat;
      • operational plumbing; and
      • a business telephone
  • Have a conspicuous, permanent sign identifying the dealer by the name in which the dealer is licensed and the dealership's hours of operation
  • Be manned and open to the public at least 30 hours each week or at least 20 hours each week and a telephone answering, paging, or mobile service offered during the remaining 10 hours each week, the number for which is identified on the business sign
And yes, they do come around and check, but after a couple visits not so much, haven't seen one of them in over 5 years (knock on wood)

I'm in Indiana and have been wanting to bootstrap a dealer on the side. The requirements are a pain in the ass !
 

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Some basic requirements for a Texas GDN (general distinguishing number, a fancy legal term for a dealer license). First, as you mentioned, the $25,000 bond. They're not all that expensive, $250-300 and they're good for 2 years. The GDN itself is initally $500, plus the 2-year fee ($400). Then, proof of garage liability insurance (or open-lot insurance if you want full coverage on your inventory). That can get a little pricey. You'll be required to have a separate telephone line (cell is ok), and an area capable of displaying a minimum of 5 cars. If you simply want to wholesale to other dealers and not flip to the general public, you can skip the display area but nothing else.

All of that requires a bit of time and $2-2500 but the tedious part involves the paperwork involved in running a used car operation, even a small one. If you're a 'curbstoner', about all you have to do is take the money and hand your buyer an open title. As a dealer, you'll have to become familiar with odometer requirements, federal forms, title-application forms, monthly dealer inventory reports, learning the Texas online E-tag system and a host of other legal stuff - and failure to do it right can and will cost you dearly, plus if you fubar a title, especially an out of state one, it can cost you months of headaches. It's not THAT hard to learn but you must learn the procedures. The state doesn't mess around when it comes to car dealers, and it's constantly changing and evolving.

Texas DMV routinely holds day-long seminars at cities all around Texas where you can learn everything and I'd highly recommend you attend one before you offer your first car for sale. That, or if you know a willing used car dealer in your area, see if they'd be agreeable to let you work with them for a month and get you some hands-on experience.

Any further questions, please let me know. Glad to help.
 

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Not worth the headache if you are doing under 10 cars per year IMO.
 

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ROFLMAO, to think "people" are actually getting one over financially on The Great State of California!................. Think of all the dough they are missing.

as much as a shit show California is flipping cars is easy, all the messicans and gypsy's do it, buy car have owner sign title, then advertise car on craigslist sell it hand signed title to new owner, plates stay on the car...dmv cant keep up with all the flippers
 

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Im a dealer in Pa....laws here are similar to Indiana's....I have 2 lots doing about 40 cars per mo. Its a hustle for sure...hardest thing is finding good help to run the lots and prep the cars. It pays to be honest as hell....i have entire families that buy off me now. Not all cars are money makers...some you just gotta dump. my two cents....
 

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Some basic requirements for a Texas GDN (general distinguishing number, a fancy legal term for a dealer license). First, as you mentioned, the $25,000 bond. They're not all that expensive, $250-300 and they're good for 2 years. The GDN itself is initally $500, plus the 2-year fee ($400). Then, proof of garage liability insurance (or open-lot insurance if you want full coverage on your inventory). That can get a little pricey. You'll be required to have a separate telephone line (cell is ok), and an area capable of displaying a minimum of 5 cars. If you simply want to wholesale to other dealers and not flip to the general public, you can skip the display area but nothing else.

All of that requires a bit of time and $2-2500 but the tedious part involves the paperwork involved in running a used car operation, even a small one. If you're a 'curbstoner', about all you have to do is take the money and hand your buyer an open title. As a dealer, you'll have to become familiar with odometer requirements, federal forms, title-application forms, monthly dealer inventory reports, learning the Texas online E-tag system and a host of other legal stuff - and failure to do it right can and will cost you dearly, plus if you fubar a title, especially an out of state one, it can cost you months of headaches. It's not THAT hard to learn but you must learn the procedures. The state doesn't mess around when it comes to car dealers, and it's constantly changing and evolving.

Texas DMV routinely holds day-long seminars at cities all around Texas where you can learn everything and I'd highly recommend you attend one before you offer your first car for sale. That, or if you know a willing used car dealer in your area, see if they'd be agreeable to let you work with them for a month and get you some hands-on experience.

Any further questions, please let me know. Glad to help.

A person on YB who lived in your state could employ your services to bid on cars they see on Copart or something, then?
 
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