Wholesale Dealer License, for all 50 States

I replied to a CL ad that offered to make you a authorized Wholesale Auto Dealer out of Missouri, but good in all 50 states.

What came back was the following email:

Visit us at www. Usdealerlicensing.com for some information to see if this is what your looking for. After you brush up on that, please call us at 815-546-9189 and we will help you with the rest, thankx.

Is anyone familiar?
I have not called and before I do I thought I would try to vet this through the hive. I am skeptical of giving out the personal data and business ID data that they seem to want. I am also concerned that one of the largest things on page #1 is "make a payment."

In the FAQs of the website I do see this:

Can I sell to the general public?
No. We provide wholesale auto dealer licenses, which means sales to the general public is strictly prohibited. Wholesale means that sales can only be auction to auction and dealer auction to dealer auction.

Scam or helpful?

815 is an Illinois area code. And we know how trustworthy Illinois is.

I think if you've got a wholesale dealer license in one state, you're eligible to participate in auctions nationwide, anyhow.

I say check with your local DMV for the details. They will know more about the ins and outs of the rules in your state than most of us here. The information might be online, too, saving you a trip.

I don't get the whole "you can sell to the public" thing. I swear in MO that if you have a dealer's license you can buy at auction and then do whatever you want with the cars afterwards. This makes me think that it is making your company into an auction house not a dealer.

For this to be true there would have to be varying types of dealer licenses in your state. "Wholesale" versus "Retail" perhaps? I suppose it could exist, but it sounds like it would limit all transactions to the auctions.

Great if you want to swoop up some cars for yourself and/or friends at auctions, but sounds like you can't resell those to anything but an auction, no?

I wonder if it is a whole sale licence so you could run an auction or other type of business that only sells to dealers and not to the public

The typos in the email reply don't bode well, IMO.

The address is in Missouri but the phone number is in Illinois? I would forget it.

CobraSpdRH wrote: For this to be true there would have to be varying types of dealer licenses in your state. "Wholesale" versus "Retail" perhaps? I suppose it could exist, but it sounds like it would limit all transactions to the auctions. Great if you want to swoop up some cars for yourself and/or friends at auctions, but sounds like you can't resell those to anything but an auction, no?

The state of TX makes this distinction, not sure about other states.

The license that allows you to sell to retail customers typically has a ton of hurdles (true retail space with furniture and a land line, X number of parking spaces, signage of X by X' dimension, etc)

The wholesale dealers license will get you into auctions, allow you to sell at auctions, and allow you to sell directly to other dealers. You always have the option of registering the vehicle in your name, paying sales tax, and then selling it as a private individual.

TN has wholesale only licenses.

As far as nationwide, that is sketchy as there isn't a federal regulation on this. It is a state by state thing. I know some auction houses don't recognize some licenses from some states because of them being sketchy.

Sounds like a ploy to get you to pay them a fee for something you could do on your own. Or it is someone selling licenses like subscriptions based on Missouri having very lose dealer affiliation laws.

http://dor.mo.gov/forms/Dealer_Operating_Manual.pdf

PDF Page 10 (or 2-5 if you read the bottom of the page)