How to Get an Auto Wholesale License

If you’re interested in starting your own auto wholesale business, you’ll need to obtain an auto wholesale license. This license allows you to buy vehicles directly from manufacturers, auctions, or other dealers at wholesale prices and then sell them to the public or other dealers for a profit. Here’s a step-by-step guide on how to get an auto wholesale license.

1. Research your state’s requirements: Each state has specific requirements for obtaining an auto wholesale license. Research your state’s Department of Motor Vehicles (DMV) website or contact them directly to understand the application process, fees, and any additional requirements.

2. Complete the application: Fill out the auto wholesale license application provided by your state’s DMV. This typically includes personal information, business details, and any required documentation, such as proof of insurance.

3. Obtain a dealer bond and insurance: Most states require auto wholesalers to have a dealer bond and liability insurance. The dealer bond ensures that you comply with state laws and regulations, while liability insurance protects you and your customers in case of accidents or damages.

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4. Attend a dealer training course: Some states require applicants to complete a dealer training course before obtaining an auto wholesale license. These courses provide valuable information on operating a dealership, understanding legal requirements, and managing inventory.

5. Submit your application and fees: Once you’ve completed all the necessary steps, submit your application along with any required fees. Some states may also require a background check or fingerprinting.

6. Await approval: After submitting your application, the DMV will review your materials, conduct any necessary checks, and make a decision on your license. This process can take a few weeks to several months, depending on your state.

7. Receive your license: If your application is approved, you will receive your auto wholesale license. Make sure to display it prominently at your place of business.


1. How much does an auto wholesale license cost?
The cost varies by state, but it typically ranges from $100 to $1,000.

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2. Can I operate an auto wholesale business from home?
In some states, you can operate from home, but others may require a separate commercial location.

3. Can I sell vehicles online with an auto wholesale license?
Yes, an auto wholesale license allows you to sell vehicles online.

4. Are there any restrictions on the type of vehicles I can sell?
Some states have restrictions on selling salvaged or rebuilt vehicles, so check your state’s regulations.

5. Can I sell vehicles to individuals without a dealer license?
No, an auto wholesale license is required to sell vehicles to the public.

6. How long does an auto wholesale license last?
The duration varies by state, but it’s usually valid for one to three years.

7. Can I apply for an auto wholesale license if I have a criminal record?
Each state has its own rules regarding criminal records. Contact your state’s DMV for specific guidelines.