Tag Archives: dealers

signing license paperwork

Difference Between a Salesperson License and Dealer License

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If you want to start a dealership business, you’ll need a car dealer’s license. You may also need a salesperson’s license if you want to work in your dealership as part of the sales team. Each application has its own separate fees and requirements, and these vary based on the state you live in. 

Let’s learn more about these two types of licenses and what they allow you to do. 

Dealer vs Salesperson License: Which Do You Need? 

A dealer license allows you to purchase used and new vehicles from car manufacturers and auctions, both in-person and online. If you plan to open a dealership, you will need a dealer license to operate. This is how you will get your inventory and add to it with new, used and repossessed vehicles. 

A salesperson license only allows you to sell the vehicles the dealership has already purchased to customers. In other words, you can sell the inventory on the lot but you cannot purchase anything. If you plan to purchase and sell vehicles, you’ll need both a salesperson and a dealer license. 

Licensing Requirements 

Obtaining a car dealership license is similar to starting a business. You’ll need your federal tax ID number and the location of your business. You’ll also need proof of insurance, as you must have insurance on all vehicles. 

A salesperson license is different. You don’t need any business-related documents. Instead, you just need to show that you have auto insurance and a clean driving record. The fees associated with a salesperson license are also much cheaper. 

Surety Bond Requirements 

On top of the licensing requirements, there is also a surety bond requirement to consider. Typically, you don’t need a surety bond for a salesperson license, but you will need it for a dealer license. The amount varies depending on your state, but it ranges between $20,000 and $100,000. 

Renewal Requirements 

Once you obtain the licensing you need, you will have to renew it every year or two years, depending on the state you live in. Fortunately, the renewal process is much easier and cheaper than obtaining the original license. That being said, you may need to provide proof of continuing education in the auto industry to keep your dealer license. 

Now that you know the differences between a dealer’s license and a sales license, you can make the right decision for your business. RepoFinder.com is a huge database of repo vehicles being sold from banks and credit unions. You do not need a dealer’s license to shop with us – our vehicles are open to the public. Shop with us today! 

financing for repo cars

Is it Better to Finance My Car through the Dealer or a Credit Union?

If you’re buying a car and need a loan to help pay for it, you have the option to get financing through a bank or the dealership. The right choice depends on various factors, such as the type of vehicle you’re buying. By understanding your options for financing, you can make the best decision for your next car purchase. 

Financing through a Bank 

Bank financing involves going directly to a bank or credit union to get an auto loan. Generally speaking, you’ll get a quote and letter of commitment that you can take to the dealership or even an online car auction. This shows that you’ve already been preapproved and gives you stronger negotiating power. 

The nice thing about going through a credit union or bank is that you’re getting true rates. There are no markups that you might get with a dealership. The only thing to be aware of is the difference between buying a new and used car. Some banks and credit unions have limits on the vehicle’s age and mileage. 

Financing through a Dealer 

This option works the same way as bank financing, except that the dealer is doing the work for you. After you pick out the car you want, the dealer will have you fill out an application and submit it to multiple lenders. This allows you to compare rates and terms so you can get the best deal. 

Typically, you’ll get lower interest rates on a new car. Used or repo cars often come with a higher interest rate. Sometimes, the dealer may even negotiate a higher interest rate than what the lender offers and use this difference as compensation for handling the financing on your behalf.

What Financing Option is Right for Me?

The best financing option is the one that will save you the most money. We generally recommend starting with bank financing so that you can see what the banks and credit unions are willing to offer you. You can then take this information to the dealer and ask them to get you quotes as well. 

Now, if you’re planning on buying a brand new vehicle, you’ll probably find that dealers offer the best financing, including 0% APR. If you’re going to buy a used or repossessed vehicle, applying for a car loan through a bank or credit union is probably best. In fact, if you’re buying a repo car, ask the seller about their financing options, as they may be willing to cut you an even better deal. 

Save Money on Used Cars at RepoFinder 

RepoFinder.com has a wide selection of repossessed vehicles that are available to the public. You do not need a dealer’s license to purchase them. Shop our inventory of cars, trucks, SUVs and recreational vehicles and see how affordable they are. Come with pre-approved financing or talk to the banks and credit unions about your options. A safe, affordable car is within reach!

cars driving on the road

5 Things You Get When You Join RepoFinder Pro

RepoFinder is a nationwide directory of banks and credit unions that have repossessions for sale. These repos are sold to the public, so you do not need a dealer’s license to purchase them. You can use our site for free, allowing you to search for repossessed cars, trucks, RVs, boats, etc. in your state. However, if you find a vehicle that you’re interested in, you can benefit from upgrading your account to Pro status. 

Below are five things you get when you join RepoFinder Pro for just $4.95 a month. No long-term contracts – cancel anytime! 

1. Full access to our Featured Repo list. 

If you want to learn more about any of the used vehicles on our directory, it helps to have RepoFinder Pro. With full access, you can view all information, such as the vehicle’s type, price, location, condition and other details. For example, has it been inspected by a mechanic? This will help you make informed decisions as to which repos you want to bid on at auction

2. Unlimited searches. 

There are no limits on the number of searches you do as a RepoFinder Pro member. This is important because it will probably take time to find a repo that fits your budget and buying criteria. Some people even bid on multiple vehicles before they win. To help narrow your search, use our category buttons. 

3. No sales fees or commissions. 

There are never any sales fees or commissions when you use RepoFinder Pro. We have an easy month-to-month subscription, and you can cancel anytime. At less than $5.00 a month, it’s easy to renew your membership until you find a repo that meets your needs. If you find a vehicle and your bid is accepted, you can cancel your membership – no strings attached. 

4. Access to the largest nationwide bank repo database. 

RepoFinder proudly offers the largest national bank repo database. We know that there are other repo listing sites out there, but none are quite as extensive as ours. You’ll find plenty of repossessions in your state that include cars, trucks, ATVs, RVs, boats and even small aircraft. 

5. No dealer license required. 

With RepoFinder Pro, you can buy used cars and trucks without a dealer’s license. All repos listed on our directory are sold to the public. Other listing sites only sell to auto dealers who plan on buying vehicles in bulk at wholesale prices, which is why they require a special license. 

Feel free to browse our database at any time. It’s free and easy to use! If you find vehicles that you want to bid on or want more information on, you’ll have far more access by upgrading to RepoFinder Pro. With month-to-month subscriptions and a low fee, you have nothing to lose! 

man shopping for cars

Do I Need a Dealer’s License to Buy Repossessions?

If you’re interested in buying a repossessed vehicle for sale, you might be wondering if you need a dealer’s license to do so. Depending on who you buy the repo from, it’s possible that they may require a dealer’s license. But, not every repo seller does.

RepoFinder.com is a nationwide directory of banks and credit unions that sell repossessions to the public. You do NOT need a dealer’s license to buy any of the vehicles listed on our site. Let’s learn more about what a dealer’s license is, when you need it and why RepoFinder does not require one. 

What is a Dealer’s License? 

A car dealer’s license is required to start a dealership business. This license allows you to purchase new vehicles from car manufacturers and used vehicles from auto auctions. The benefit of having this license is that you can buy vehicles on a large scale. So, if you wanted to purchase ten vehicles from a repo auction, you could do so with a dealer’s license. 

To obtain a dealer’s license, you need proof of a federal tax identification number and evidence of your company’s name and location. Additionally, you need proof of insurance to cover all of the vehicles you plan to sell at your dealership. 

Why Would Someone Use a Dealer’s License to Buy Repos? 

Repossessed cars, trucks and recreational vehicles are hot. They are sold at highly discounted prices because the banks and credit unions are trying to recoup their losses. It’s not uncommon for repos to need some basic maintenance and repairs, as many haven’t received this from their owners. But, they tend to be in decent condition with few major problems. 

For this reason, the dealerships love getting repos. They can purchase the cars in bulk at a discounted rate, fix them up and sell them for as much as any other used car on the lot. This is why some repo listing sites and auctions require a dealer’s license. 

Does RepoFinder Require a Dealer’s License? 

RepoFinder sells repossessed vehicles to the public, so you do not need a dealer’s license to purchase a vehicle through our repo listing site. However, it’s important to know that each bank and credit union has different processes for selling repos. Therefore, you’ll want to visit each individual site to know what you need to purchase a vehicle.

For example, some banks will make you go through the bidding process while others allow immediate purchases. We do recommend working with banks that let you see the vehicle before you sign anything. Once you sign the paperwork, the car is yours whether it drives or not. 

RepoFinder.com makes it easy to shop for repossessions in your area. Check back often, as new repossessions are being added all the time!