How to open a used car dealership in North Carolina
The process of open a used car dealership in North Carolina Nothing to write home about, but You need to meet a number of requirements and follow certain steps. As in most states, you need to have a dealer license in order to sell more than five cars a year. In this article, we will explain what you need to do open a used car dealership in North Carolinaand we also leave you some tips for success with a used car dealer in North Carolina.
- Types of reseller licenses in North Carolina
- Requirements for opening a used car dealership in North Carolina
- How to open a used car dealer in North Carolina?
- How to renew your used car dealer license in North Carolina?
- Tips for Succeeding with a Used Car Dealer in North Carolina
Types of reseller licenses in North Carolina
Although we are interested in opening a dealership to buy and sell used cars in North Carolina (for which there is a specific license), the first thing we recommend is research and inquire about each of the licensing types in North Carolina. Well, there are five types:
- Dealership of new vehicles.
- Used car dealer. This is the license that interests us.
- Distributor. Basically it's a new car dealership for other dealerships.
- Wholesale dealer. It is similar to the previous one in the sense that it is a dealership / dealership sale, except that used cars are sold instead of new cars.
Requirements for opening a used car dealership in North Carolina
To open a used car dealership in North Carolina, the following requirements must be met:
- information about owners and administrators;
- information about business entity;
- requirements of company position (size, office, sign showing the retailer's business name in capital letters at least 3 inches high);
- The first page of the deed of incorporation of the companyif it is established in the Secretariat of State;
- Pass test a 12 hour licensing course approved by the Department of Motor Vehicles of North Carolina (DMV);
- Civil liability insurance policy to all risks of the company covering the license plates of the dealership;
- $ 50,000 security deposit for the head office and $ 25,000 for each additional location or store;
- Successfully pass and before applying a Dealership inspection performed by Licensing and theft office from North Carolina.
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How to open a used car dealer in North Carolina?
1- Prepare the documents
To start the process of obtaining a used car dealer license in North Carolina is required fill in the application form.
you must too make sure you meet all the criteria we have outlined above. In addition, you need to obtain a number of documents from other authorities:
- Proof that you meet everyone state and local planning ordinances;
- Company Name from the county registry if the business is operated under a name other than that of the owner (s);
- trader license of the municipality and province;
- If the activity will be carried out as a societyit is necessary file the deed of incorporation at the Secretary of State of North Carolina.
2- Find a place
The premises must meet the following requirements:
- A consolidated sales room with at least 96 square feet of floor space;
- A sign with letters at least three inches high.
Important: Make sure the office and / or sales room complies with all state, provincial and municipal planning regulations and ordinances.
3- Complete the reseller course
This is a essential requirement for used car dealers in North Carolina. Also, it is necessary to present the original certificate with the application, and you must complete the course during the 12 month period prior to applying. Courses for new candidates last 12 hours; and when you renew your license you will need to complete a 6 hour renewal course.
4- Obtain civil liability insurance
As mentioned above, Full liability insurance is required to cover dealer's license plates. In this sense it is necessary to include in the request the name of your provider and the policy number. To find out more about what this type of insurance covers, read our article "What does fully coverage insurance cover?".
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5 - Get the car dealership bond
The bond from a North Carolina auto dealer is another of the essential requirements that you have to meet, and you have to present it in the official form.
The condition of the bond agreement is that the authorized and bonded dealers respect the articles 12 and 15 of chapter 20 of the NCGS. If you violate any of these conditions and thereby harm the state or the public, you can file a claim against the lien.
As we mentioned, the bond amount is $ 50,000 for the first position and $ 25,000 for each additional position. However, to get the deposit, you only have to pay part of that amount.
The exact cost is determined based on yours personal credit score, financial and corporate statements, and fixed and liquid assets.
6- Schedule the inspection of the premises
All dealerships must be inspected and approved by a Bureau of Licensing and Theft agent before applying.. In this regard, you should contact the specific inspector of the province in which you plan to open the dealership. Below is a list of phone numbers you can call.
- Greenville (252) 752-4435
- Fayetteville (910) 486-1331
- Raleigh (919) 816-9194
- Greensboro (336) 256-2024
- Winston-Salem (336) 767-8808
- Huntersville (704) 331-4500
- Ashville (828) 782-9640
Make sure you call Monday to Friday, 8am to 10am
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7- Send application and documents
Long last, send all documents to:
North Carolina Department of Transportation
Licensing and theft office
Raleigh, NC 27697-0001
And don't forget to pay (and attach) the corresponding fees. Here we leave you in detail how much the North Carolina DMV charges them.
- $ 70.00 for each position
- $ 28.00 per dish for the first five courses
- $ 14.00 per dish for additional dishes
- $ 14.00 per license plate for dealer carriers
- $ 25.00 for 25 temporary plates
How to renew your used car dealer license in North Carolina?
The license for the purchase (and sale) of cars is valid for one year from the date of issue. In this way, it must be renewed before it expires. At the time of renewal, it is also necessary to possess all the requisites required at the time of the first license application.
Tips for Succeeding with a Used Car Dealer in North Carolina
Hire good employees
Even if you want to serve all customers who visit your used car dealership yourself, you will most likely reach a certain saturation point and the quality of your customer service will decline (even in the case of small dealerships).
For this reason, Hiring quality employees is essential to represent your company. Sales people must be able to identify a consumer's needs and find a way to meet them.
Likewise, they must have the necessary discipline not to impose their own interests and have the ability to respond to customers taking into account both their interests and those of the company.
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Take advantage of technology
Websites like edmunds.com have revolutionized the car buying experience for both consumers and dealers, giving buyers the ability to search for available vehicles outside the areas they live in. More importantly, these sites offer consumers the ability to compare prices between retailers almost instantly.
Consequently, you have to equip your sales team with the necessary technology (computers) to respond to customer inquiries in real time. Your computer system must also be able to support a live chat feature that allows sales staff to interact with customers wherever they are.
In this way, make sure your sales team has the information they need to deal with a customer. Basically, this information would be the minimum price you are willing to accept for the cars that will be traded.
Promote your business
Even if you have hired a social media manager to promote your used car dealer, you should always do something more, go further.
Depending on the target market, you need to identify where to place ads that attract people to your business. Some of the possible places you can place an ad are local newspapers, group-specific publications such as community or college newsletters, billboards, radio ads, and the sides of public buses.
It's often easier to promote a business when there's something specific you want to let people know about, like an upcoming event, seasonal sale, etc. Think of ideas that resonate with your target market and develop the promotion and advertising strategy around it.Yes
take care of the details
Most people decide whether to enter a business based on its appearance and cleanliness. For this reason, you need to make sure that your used car dealer's facilities are kept in top condition at all times. If you don't have a maintenance team, you should assign responsibility for tasks like sweeping grounds, cleaning toilets, and cleaning and stocking the customer waiting area to specific employees and making sure they perform them on a daily basis.
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