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Below are the most frequently asked questions.

Please feel free to contact Florida car dealers license with any question that you do not see listed below.
We update the questions and answers about its dealer license affiliate program on a regular basis.  

Can I have other people use the plate to transport cars for me?…

Can I have other people use the plate to transport cars for me?…

No.  The member is the person listed on the used car dealer license and the insurance company, so only the member can use the plate to transport cars.  Any accident while someone else is "using" the plate will void the insurance coverage.…

Is the dealership setup in my name?…

Is the dealership setup in my name?…

No. The dealership Florida Car Dealers License sets up is a Limited Liability Company (LLC) and will have a separate name. The purpose of the LLC is to gain the proper license to legally buy and sell cars as well as corporate protection from lawsuits.  Each member is then made a Member of the LLC via a resolution which gives the member the legal right to buy and sell cars for the LLC.  Members of the LLC are basically partners and are entitled to the profits they generate.…

Will the license be located in the State that I live?…

Will the license be located in the State that I live?…

Most likely yes; however, even if the affiliate used car dealership is not located in your state, it will likely be in a neighboring state. Florida Car Dealers License currently has affiliate used car dealerships located in over 20 different states and is opening new affiliate used car dealerships at the rate of about three per month.…

Do I have to pay anything else beside the monthly fee?…

Do I have to pay anything else beside the monthly fee?…

You do not have to pay anything else to Florida Car Dealers License beside the stipulated monthly payment.  However, each member is responsible for any cost associated with their business.  Such costs might include auction fees, advertising costs, paperwork administrative fees, legal fees incurred from your activities etc. Each affiliate used car dealership might impose an "Administration Fee" which is usually between $50 and $100 per retail car sale. This Administration Fee is customary in the used car sales industry and is usually passed on to the customer.…

How much insurance coverage comes with the plates?…

How much insurance coverage comes with the plates?…

There is usually $100,000 liability insurance and $25,000 to $30,000 worth of physical damage with a $1,000 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.…

Do I need to have a lot or location for the cars I sell?…

Do I need to have a lot or location for the cars I sell?…

Yes and no.  You will obviously need a place to store the cars after you purchase them but you do not need to rent a location to display them.  Many of our customers only have one to five cars at a time so it is never an issue.  The way we train all of our members alleviates any and all storage problems.  Think about the following question: "Do you want to be in the used car sales business or the used car storage business?"  The answer should be apparent and is the basis of our training.  If you have used cars in inventory then you have a problem!  If you have cars that have been sitting for two or three weeks then you should not be buying more cars but selling the ones you have.  Florida Car Dealers License trains our members to sell cars within two to three days so that storage never becomes a problem. Florida Car Dealers License also has dealerships all over the country so many times the member can store their cars right at the Co-op used car dealer license location.…

Do I need a local business license?…

Do I need a local business license?…

No. You will be a member of a LLC; the LLC has all the required licenses.…

Can I use the plate for personal use?…

Can I use the plate for personal use?…

No.  The used car dealer plates that Florida Car Dealers License supplies to members are for BUSINESS USE ONLY.  Business use are things like transporting a car from the auction to the dealership location, transporting a car from the dealership location to a mechanic and test-driving with a customer.  Basically, as long as where you are coming from and where you are going to is business related, then you are fine.  Now many people say to us "I know of this guy who uses his plate all the time and whenever he is pulled over he just makes up where he is going to and coming from and....".  That is fine, but remember that person runs the risk of getting fined if they are caught.  Yes, we understand that thousands of people in the car business use their plates every day for personal use, but remember it is just like speeding, if you get caught you could get a ticket.…

When do my monthly payments start?…

When do my monthly payments start?…

Your monthly payments start as soon as you get the used car dealer license.  For example, if you sent in your application September 1st with your first and last two months payment and you got your license October 15th, then your first monthly payment would be due November 15th.  Please note that Florida Car Dealers License uses an ACH service for collecting the monthly payment so you will need a checking account.  For anyone wishing to pay annually, we will discount the price by $1,000.  This means that when you get the dealer license you would owe an additional $3,500, paying you up for the entire year.…

Am I liable for any of the other people on the license?…

Am I liable for any of the other people on the license?…

No you are not, and there are two parts to the answer.  First part of the answer involves civil liability.  If another member on the LLC causes civil damages by his or her actions those civil damages stay with the LLC.  That is the whole basis of having a LLC in the first place.  For example, a member sells a used car with a bad transmission and that member decides to "disappear".  The customer who bought the car only has recourse against the LLC, not the individuals that comprise the LLC.  As a side note, Florida Car Dealers License can assure you that we have checks and balances in place that prevents a person from "just disappearing".  The second part of the answer involves criminal liability.  Criminal activity affects not the LLC but directly affects the individual involved in such criminal activity.  So if a person was turning back odometers that person would be the one liable for any criminal charges.  Again, you can be assured that Florida Car Dealers License has checks and bal…

Why do you need $1,497 up front?…

Why do you need $1,497 up front?…

Florida Car Dealers License needs the $1,497 up front to show us your commitment to this affiliate program, as well as to cover the initial cost of setting you up on the used car dealership. Once we get the dealer license setup we expect you to start paying the monthly fee right away. Florida Car Dealers License has had people in the past who decided to drop out even before getting the dealer license and then ask for their money back..!  The reason for paying $1,497 up front is simple...Florida Car Dealers License needs to make sure that you are serious about this affiliate program.…

Can I share the license with other people to cut my cost?…

Can I share the license with other people to cut my cost?…

Yes and no. Yes you can have "partners" and all of you can share in the profits of the cars sold but only one person gets access to the dealer auctions and there is only one dealer plate issued.  The reason for this is that the DMV will issue a limited number of dealer plates to each used car dealer license.  If the DMV issues five plates to a used car dealer, then Florida Car Dealers License only has 5 "slots" on that dealership.  If Florida Car Dealers Licensegave every member two or three plates, then this business would not be profitable.  Also, dealer auctions limit the number of people that can enter as buyers, so Florida Car Dealers License is faced with the same problem.  If an auto auction only allows five representatives per used car dealership, then Florida Car Dealers License needs to have all five representatives be full-paying members.…

How long is my contract with Florida Car Dealers License?…

How long is my contract with Florida Car Dealers License?…

The business arrangement with Florida Car Dealers License is a month-to-month contract.  Florida Car Dealers License collects first and last two months payment up front and when you want to leave the used car dealership you simply notify Florida Car Dealers License and your last two months are paid up.  The reason for this is for members to wind down their business activities.  Members generally have a few cars they need to sell and the last two months allows the member to do so.  Florida Car Dealers License also does not believe in long term contracts because if someone is struggling with the business there is no sense in forcing that person to stay with the company.  Basically, the member has full control over when they want to leave Florida Car Dealers License.…

Will I be getting a wholesale or a retail license?…

Will I be getting a wholesale or a retail license?…

The affiliate used car dealership you will be a member of will have a retail used car license.…

Can I attend dealer only auctions?…

Can I attend dealer only auctions?…

Yes, members can attend dealer only auto auctions.  Attending dealer only auto auctions is one of the biggest benefits of having a used car dealer license.  You can find dealer only auctions easily online. Two of the biggest dealer-only auctions are located online at www.adesa.com or www.manheim.com. Both of these used car dealer only auto auctions are great sources for used cars. Some used car dealer only auto auctions sell up to ten thousand used cars per day..!…

What is the corporate structure of the affiliate dealership?…

What is the corporate structure of the affiliate dealership?…

Florida Car Dealers License sets up all its affiliate used car dealerships as Limited Liability Companies (LLC's) A LLC is a hybrid between a corporation and a partnership. This legal structure offers the protection of a corporation but has the flexibility of a partnership. One individual is designated as the Manager and is responsible for the daily operations of the used car dealership. Everyone else is then added to the LLC as members, giving them the legal right to buy and sell cars for the used car dealership. Every person involved with the affiliate used car dealer license is then entitled to the profits that they personally generate.…

Do I have to obey local laws with an out-of-state license?…

Do I have to obey local laws with an out-of-state license?…

Yes you do.  Using Florida Car Dealers License program does not absolve anyone from adhering to state laws.  If your town has an ordinance that states that you can not have more than three unregistered cars in the driveway, then you can not have four unregistered cars in your driveway.  If your state has a lemon-law, then you are obliged to follow that lemon-law for your customer.  If you put twenty used cars on your front lawn and balloons on each vehicle, you will have problems with the local officials.  However, if anyone ever comes to you and says "You can't sell cars in this state with an out-of-state license" then you have that person call our office immediately!   It is legal to buy and sell cars in any state with any used car dealer license, but that does not give anyone the right to disobey or disrespect other local laws pertaining to the used car business.…

Do I have to pay income taxes on the cars I buy and sell?…

Do I have to pay income taxes on the cars I buy and sell?…

Yes you do.  You are in business and you need to pay income taxes on your profits. All members are treated as independent contractors and you will receive from the affiliate used car dealership a 1099 which you need to file with your income tax form 1040. You simply keep track of your income and expenses and hand everything over to an accountant who will prepare your income tax returns. Members usually report their income on a schedule C, which is attached to their 1040 Income Tax Form.…

Can I sell cars retail to the public?…

Can I sell cars retail to the public?…

Yes, the used car dealership can sell cars retail to the public. All of our affiliate used car dealerships have retail licenses which allows retail sales to the public. Just for clarification though, you the member are not selling cars to the public, the used car dealership is actually selling cars to the public. You, the member, are just acting as an agent for the affiliate used car dealership.…

How can I get a list of auctions in my area?…

How can I get a list of auctions in my area?…

You can get a list of auctions in your area by searching on the Internet. Two of the biggest auction houses are www.adesa.com and www.manheim.com.  There are also thousands of small used car auto auctions that are held at local used car dealerships and tow companies.  The best way to find these smaller auctions is to build relationships with other car dealers and ask them if they know of other auctions in the area.  You can also ask the management at the auctions you visit if they know of other auctions in the area.  Each auction usually operates on a particular day of the week.…

Do I have to pay sales tax on the cars I buy and sell?…

Do I have to pay sales tax on the cars I buy and sell?…

No.  Car dealers are exempt from having to pay sales tax on the vehicles they purchase for resale.  The sales tax is passed to the retail buyer who pays when they register the car. However, depending on what state your used car dealer license is located, you might have to collect sales tax from the customer. All policy and procedure will be fully explained to you once you are a member of the affiliateused car dealership.…

Is this legal?…

Is this legal?…

Yes! And the reason is the way Florida Car Dealers License structures the used car dealership which holds the used car dealer license.  You are NOT renting a dealer plate nor renting a dealer license, both of which are illegal.  Florida Car Dealers License sets members up with a local used car dealership that is structured as a LLC. Florida Car Dealers License simply makes everyone a member of the LLC which gives the member the legal right to buy and sell cars for the LLC. Each member buys and sells the cars as an agent for the LLC and keeps all the profits he or she personally generates.…

How many dealer plates do I get?…

How many dealer plates do I get?…

Each member gets one insured used car dealer plate with our Co-op dealer license program.  Anyone who wants additional used car dealer plates can take advantage of our "Plate Only Program" which costs $299 per month, per plate. Please contact Florida Car Dealers License for further details.…

Where will my dealership be located?…

Where will my dealership be located?…

Florida Car Dealers License has Co-op used car dealer licenses nation-wide.  The particular Co-op used car dealership you will be part of could be located in any of the fifty states.  We do however tend to deal with about 20 states on a continuing basis because their laws for operating used car dealerships are favorable.  Please remember 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.  For example a used car dealer from Florida can legally sell cars to anyone in the country, they are not restricted to just selling cars to Florida residents.  Also, a person living in Oregon is not required to buy a car from an Oregon used car dealer, they can buy a car from any used car dealer in the country.  For more information about your legal rights you can research "Interstate Commerce" on Google.com Florida Car Dealers License does try to place members on local Co-op used car dealerships, however …

Can I buy and sell cars in my state with an out-of-state license?…

Can I buy and sell cars in my state with an out-of-state license?…

Yes.  A used car dealer license transcends state lines.  A dealer located in Arizona is not restricted to selling only to Arizona residents, they can sell cars to anyone in the country.  A person living in Ohio is not legally required to buy a car from an Ohio dealer, they can buy a car from any dealer in the country they desire.  Remember though, it is how you conduct your business that makes it either legal or illegal.  Tax evasion is illegal while tax avoidance is perfectly legal.  The way Florida Car Dealers License sets you up is the key to this question.  We make you part of a used car dealer license which gives you the legal right to buy and sell cars for that dealership.  You will never have any problems with wholesaling a car to another dealer.  Also, Florida Car Dealers License does not allow any member to sell a car directly to the public as that could be construed as "curb-stoning" which is illegal. All retail sales are processed through the used car dealership of which you…

Can I sell cars out of my house?…

Can I sell cars out of my house?…

There is no need to sell cars out of your driveway with our program. Florida Car Dealers License sets you up with a local used car dealership where you can conduct your business and allow you to portray a professional image. Florida Car Dealers License also strongly suggests selling cars on the Internet. The Internet is a powerful tool for selling cars and it is poised to explode in the next few years. Why spend countless hours showing cars in person when you can sell them online with much less effort.…

How long does it take to get the license?…

How long does it take to get the license?…

It generally takes between four and six weeks for Florida Car Dealers License to get members setup on a Co-op used car dealer license.  This time can fluctuate based upon many factors.  Please remember that we are dealing with many state agencies and are subject to their schedules and procedures.  If you have ever set up a used car dealership before or have looked into the process you should understand all the red-tape involved.  Once you have your dealer license with Florida Car Dealers License, you can be assured of continual access to that used car dealer license, dealer plates, and access to used car dealer auctions.…

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