The first step to becoming a broker for cars is to decide what kind of cars you want to sell. This can either be new or used vehicles. You will also need some money to get started and a way to market your business effectively.
how to become a broker for cars
A broker is an individual who buys and sells cars on behalf of other individuals or businesses. By working as a car broker, you can earn a steady income while helping others find their ideal vehicles. Check out these steps to learn how to become a car broker today!
National Auto Dealer Association
Contact your local National Auto Dealers Association (NADA) and your local National Independent Auto Dealers Association (NIADA). If you are new to the auto business, a few years spent working as a salesperson for a dealer and for a broker is wise. This gives you insights and relationships within the industry and helps you obtain the right licensing by being in good standing as a salesman. Working for another broker will also help you avoid costly mistakes as you start your business.
Licensing of Brokers
Go to the local Department of Consumer Affairs website or office and obtain an application for dealer licensing. Request information about the motor vehicle licensing board or other similarly named regulatory committee. If you are having trouble locating the right department, make a call to the Department of Motor Vehicles and ask who licenses auto brokers in your state. They can point you in the right direction. Most states require a minimum production level of selling three cars annually. Additionally, register with the Secretary of State as a business entity, and remain in good standing.
Application Inclusions
Most states require auto brokers to have a physical location, and to provide pictures or schematics of the office and potential showroom, bathrooms and displays. Hold a lease agreement for at least one year; your application should include a bond. Contact an insurance company to obtain the surety bond or provide a financial statement with a line of credit demonstrating solvency in the event of loss or dispute. Provide a copy of your dealership agreements. Fingerprinting and background checks are also mandatory in the process.
Networking and Advertising
Build a network of dealership and client relationships. Dealerships often enjoy the quick sales process of working with brokers. If you can bring clients in, you are likely to have a lot of dealers who want to work with you. Determine how you will get new clients, and implement a referral program so they feel good about sending family and friends to you.
A car broker is a person who specializes in buying and selling cars for auto dealerships. Some brokers focus on high-end, luxury cars or vintage models; others focus mostly on new cars. Whether you have your own personal collection of vehicles or are already running a dealership and looking to expand, it can help to have an expert on your side who understands all aspects of the sale process.
