Dealer Frequent Questions

Missouri Auto Dealers License Frequently Asked Questions

1. What can I do with a Missouri Auto Dealers License?
2. Do I need a Missouri Auto Dealer License to get into Dealer Only Car Auctions?
3. Can I use my Missouri Auto Dealers License to buy vehicles at dealer only auctions, then resell them on Ebay or Craigslist.org?
4. How much money can I make with a MO Auto Dealer License?
5. Will I be allowed to sell vehicles overseas with my Missouri Auto Dealers License?
6. Can I use my friends Missouri Auto Dealers License to get into an auction, have her buy a vehicle for me to sell?
7. Can I buy a car from someone, ask them to sign the title, and leave the rest of the title blank?
8. Do I have to attend a Dealer Educational Seminar before I get a Missouri Auto Dealer License?
9. What is a Dealer Surety Bond, how much are they, and where can I get one?
10. What type of dealer insurance do I need for my Missouri Auto Dealers License, what does it cost, and where can I get a quote?
11. Once I obtain my Missouri Auto Dealers License, where can I find Missouri Dealer License forms?
12. I have a commercial location in mind for my dealership, what next?
13. Can I have a friend or business partner attend the seminar with me?
14. What is a Dealer Floor Plan?
15. What is Sub-Prime Financing?
16. What is a Buy Here Pay Here Car Dealership?
17. How can I get my Missouri Auto Dealers License on the same day as the Dealer Seminar?
18. Do I have to sell a certain number of vehicles to keep my dealer's license?
19. Do I have to live in Missouri to obtain a Missouri Auto Dealers license?
20. After I get my Missouri Auto Dealers License, can I sell cars on Sunday?
21. How much will it cost to get my Missouri Auto Dealers License?
22. Do I have to take any kind of test at my Missouri Dealer Seminar?
23. I have other questions about obtaining a Missouri Auto Dealer License, what should I do?

What can I do with a Missouri Auto Dealers License?

Your Missouri Auto Dealers License will allow you to enter almost every dealer only vehicle auction throughout the United States and buy vehicles at wholesale prices. Once you obtain your Missouri Auto Dealers License, your local auto auction should be able to issue you an Auction ID Access card. After you are licensed, you can also obtain this card by going directly to the Auction Access website. You will be able to use this card to get into most dealer only auctions in every state. You can purchase vehicles at these auto auctions and sell them on your lot. Your dealer's license will also allow you to purchase vehicles without titling them. When you sell a car, you will be able to sign the title over to the new owner. You can bid on cars online throughout the country through auto auctions that have online bidding capability. You can also gain access to many insurance and salvage auctions that are only open to licensed dealers. A dealers license can give you an unlimited earning potential.

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Do I need a Missouri Auto Dealers License to get into Dealer Only Car Auctions?

Yes. You must obtain a Missouri Auto Dealers License before you are allowed access to Dealer Only Car Auctions. Once you obtain a MO Auto Dealer License, you can enter every Dealer Only Car Auction in Missouri, every Dealer Only Car Auction throughout the United States, and many Dealer Only Car Auctions in other countries.

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Can I buy vehicles at Dealer Only Car Auctions, then resell them on Ebay or Craigslist.org?

Absolutely. Once you obtain your Missouri Auto Dealers License, you can buy vehicles at Dealer Auctions, then sell to individuals or dealers all over the country. You can even sell your vehicles to individuals or dealers in other countries. Its totally legal with your Missouri Auto Dealer License. Having a MO Auto Dealers License offers you great selling opportunities.

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How much money can I make with a Missouri Auto Dealers License?

That's an excellent question. Many people with a Missouri Auto Dealer License choose to sell only a few vehicles per year, which can still be quite profitable. Other dealers choose to "Go For It" and sell hundreds of vehicles per month. A MO Auto Dealers License will allow you sell one car a month or five hundred cars a month. As a licensed Missouri Auto Dealer, your earning potential is truly unlimited.

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Will I be allowed to sell vehicles to people in other countries with a Missouri Auto Dealers License?

Yes. You can use your Missouri Auto Dealers License to sell vehicles to individuals or dealers in any country in the world. Countries all over the world are experiencing a huge lack of vehicle inventories and exporting cars overseas has become an extremely profitable dealer niche. The first thing to do is to contact a reputable transportation company that has extensive experience exporting vehicles to other countries. You may also want to develop a business relationship with a single car dealer or distributor in another country which would allow you to export a large number of vehicles with only one business contact. Many countries in Europe, South America, Africa, and Asia are suffering from a substantial lack of vehicle inventories leading to much higher profits per vehicle. An aggressive entrepreneur with a Missouri Auto Dealers License can utilize this growing overseas opportunity for incredible financial rewards.

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Can I use my friend's Missouri Auto Dealers License to get into an auction, have her buy a vehicle for me, then sell it for a profit?

No. A person must have there own dealers license in order to purchase a vehicle from a Dealer Auction then sell it for a profit. Any person without a MO Auto Dealer License that purchases a vehicle at dealer only auction, then sells it without tax, tilting, and licensing that vehicle, is operating as an illegal dealer. If you operate as an illegal dealer in Missouri you can be charged with a Class D Felony and the person that allowed you to operate illegally under their license will have their dealers license permanently revoked. You can never, ever operate under another person's Missouri Auto Dealers License.

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Can I buy a car from someone, ask them to sign the seller's signature box on the title, and leave the rest of the title blank so I can resell it?

Never. This is called an "Open" title. It is also called a "Blank" or "Skipped" title. Leaving a portion of the title blank allows an illegal dealer to resell a vehicle without paying taxes or "Skipping" the taxes on that vehicle. Possession of a blank, open, or skipped title is against the law in all fifty states and is now a felony in most states. When you obtain your Missouri Auto Dealers License, you will be able to purchase a vehicle, fill out the back of the title completely, then use your Dealer Number to assign the ownership of the vehicle to the next buyer legally. Never, ever possess an incomplete title and never purchase a vehicle from someone with a blank title, they are acting as an illegal dealer. With your Missouri Auto Dealers License, assigning a title is completely legal. Find out more about getting your Missouri Auto Dealers License.

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Do I have to attend a Dealer Educational Seminar before I get a Missouri Auto Dealer License?  

Yes, Missouri Senate Bill 747 requires all Missouri Automobile Dealers License applicants applying for a dealers license for the first time to attend the training course. Missouri Dealer Seminars is a state approved Dealer Educational Seminar Provider.

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What is a Dealer Surety Bond, how much are they, and where can I get one?

You must provide an original surety bond, or irrevocable letter of credit, in the amount of $25,000 before obtaining a Missouri Auto Dealers License. These legal documents can satisfy any legal claims against your dealership by unsatisfied customers. Don't worry, if you operate your business with complete integrity, honesty, and the highest ethical standards, you will probably never have claims against your Dealer Surety Bond or Irrevocable Letter of Credit. To obtain an Irrevocable Letter of Credit, you will need to contact your banker. Some banks require $25,000 worth of assets before issuing a letter of credit. Most dealers in Missouri choose a Dealer Surety Bond. An insurance agent or bonding company will be able to provide you with an original surety bond. The price for your Dealer Surety Bond depends on your credit score. If you have good credit, the price for your bond should be around $150.00. If you have bad credit, the cost of obtaining your bond could be much higher. To obtain a Missouri Dealer Surety bond, please call 816-390-2267.

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What type of dealer insurance do I need, what does it cost, and where can I get a quote?

In order to obtain a MO Auto Dealer License you will need a Dealer Insurance Garage Policy. Your Dealer Insurance needs to be in effect before you are granted a Missouri Dealers License. Dealer Garage Insurance is a very specialized insurance that is only sold by a few companies nationwide. A Dealer Garage Insurance Policy will cover your vehicles when they being driven for demonstration purposes by your customers. It will also cover you while you are driving vehicles back and forth to auctions. Most Dealer Garage Insurance Policies cover you if a customer is injured on you lot. Dealer insurance can be very expensive and newly licensed dealers normally pay the highest rates. A liability policy can start at around $150.00 per month depending on your location and the number of Dealer Plates that you possess. Full comprehensive, collision, theft, hail damage, and errors & omissions Dealer Garage Insurance Policies can cost much more. Just remember, the longer you hold a Missouri Dealer License, your dealer insurance rates should go down. You may obtain your Missouri Dealer Garage Policy, by clicking here.

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Once I obtain my Missouri Auto Dealer License, where can I find Missouri Dealer License forms?

Keeping up on your paperwork will be a big part of the day to day operations of your car dealership. When you receive your Missouri Dealer License you will be required to keep copies of every single document that is used in the operation of your Missouri Car Dealership. The most important piece of office equipment you will need is a copy machine. Copies of all documents related to your business will need to be kept on file, ready to produce for the Missouri Department of Revenue at a moments notice. After you obtain your Missouri Auto Dealers License, you will also need bill of sale forms, Federal Trade Commission Buyers Guides, title riders, odometer disclosure statements, secure power of attorney documents, and many other dealer forms. You can find most of the forms you need on the Missouri Dealer Forms page.

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I have a commercial location in mind for my dealership, what next?

Call your local city or county zoning board to make sure you can operate an automotive business at this location. You want to make sure any location you have chosen for your new dealership can meet all the zoning requirements before you attempt to obtain a Missouri Auto Dealer License.

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Can I have a friend or business partner attend the seminar with me?

Yes. The Dealer Educational Seminar tuition is $249.00 for the first person attending and $149.00 for each additional person that attends the class. Each person attending a Missouri Dealer Educational Seminar will be issued a separate Certificate of Completion

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What is a Dealer Floor Plan?

A Dealer Floor Plan is a loan for your vehicle inventory. A Dealer Floor Plan is a great way to obtain the funds you need so you can start purchasing vehicles as soon as you receive your Missouri Auto Dealer License. Many companies offer car dealerships lower interest rates and special financing options that are designed specifically for the Missouri Car Dealership.

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What is Sub-Prime Financing?

Sub Prime Financing is the process of finding loans for your customers with less than perfect, or bad credit. Many companies have loan programs that are designed to assist car dealers in obtaining loans for customers that need a car but have bad credit.

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What is a Buy Here Pay Here Car Dealership?

When you operate a Buy Here Pay Here Car Dealership in Missouri you are financing your vehicles to customers that are usually not able to obtain a bank loan. This is an excellent service to your hard working customers that just happen to have bad credit. Your customers may mail a payment to you every two weeks or some customers decide to have their payments deducted automatically from their checking accounts. Learn more at your dealer seminar.
  
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How can I get my Missouri Auto Dealers License on the same day as the Dealer Seminar?

If you have completed the 12 Steps To Getting Your Dealers License, the only paperwork you will need to be licensed is your Dealer Educational Seminar Certificate of Completion. You can take your completed paperwork, along with your Certificate of Completion, and drive to Jefferson City after your class. You will then pay your licensing fees and be issued a Missouri Motor Vehicle Dealer License, and a set of Dealer Tags. You will then be fully licensed to legally sell motor vehicles for a profit. You may also mail in your paperwork any time within 12 months after the class.

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Do I have to sell a certain number of vehicles to keep my dealer's license?

Yes, the Missouri Department of Revenue requires dealers to sell a minimum of 6 vehicles per year. Newly licensed dealers will be required to sell 1 vehicle every 2 months during the first year in operation. Any dealer that fails to sell 6 vehicles per year will not be allowed to renew there license for a period of one year.

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Do I have to live in Missouri to obtain a Missouri Auto Dealers license?

No, you do not have to be a Missouri resident in order to obtain a Missouri Auto Dealers license, although your dealership must be located within Missouri.
 
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After I get my Missouri Auto Dealers License, can I sell cars on Sunday?
 

No, Missouri law requires all Missouri Dealerships to be closed on Sundays.

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How much will it cost to get my Missouri Auto Dealers License?

Missouri Dealer License fees vary depending on the number of Dealer Plates you order, along with several other factors. To find out what it will cost to get your Missouri Auto Dealers License, check the Missouri Dealer License Fees Page.

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Do I have to take any kind of test at my Missouri Dealer Seminar?

No, there is not any type of test at your Missouri Dealer Seminar. It is just a friendly, casual question and answer session. After you sit through the course you will be issued a Certificate of Completion to show the Department of Revenue you attended the class.

I have other questions about obtaining a Missouri Auto Dealer License, what should I do?

Contact the Missouri Department of Revenue at 573-526-3669 option 7 or find out more about obtaining your Missouri Auto Dealers License by clicking on the Missouri Auto Dealer License Page.