7 Easiest States to Obtain a Used Car Dealer License

If you’re looking to become a used car dealer in the United States, you might want to check out our list of 7 easiest states to obtain a used car dealer license.

No matter what state you’re in, the business of buying and selling cars, if done well, will always be lucrative. Big cities like New York City might be the exception, but even there, cars can often be necessary. Transportation is crucial to everyday living almost everywhere, especially near the end of the year when everyone is rushing from place to place getting their holiday shopping done.

But that doesn’t mean everyone’s going to be sauntering around in the latest and greatest vehicles. In fact, this article talks about how fewer U.S. households are buying new cars than ever. Who can afford a new car these days, anyway? And used cars can work just as well, or better if they’re well cared for. So going into the business of becoming a used car dealer isn’t a bad idea. Secure a lot in a good location, display some of your finest vehicles out front, and see the money start rolling in. But it isn’t quite that easy. Every U.S. state requires an auto dealer license before any buying or selling business can take place. So should you get a used car dealer’s license if you’re going into the business? It could greatly cost your business if you’re ever caught without one.

But how to register as a car dealer, and isn’t that complicated? The Department of Motor Vehicles website will spell out the steps for you, which often include filling out an application, taking and sending pictures of your facilities, getting a background check, paying fees and having your property inspected. In some states, there are more wholesale dealer license requirements than this, and in some, there are less. We’re here to tell you which states require the least. Because obtaining a wholesale dealer license like this can take time, patience and expertise. And sometimes we don’t have much of any of those things to go around.

To form our list of easiest states to obtain a used car dealer license, we researched the requirements for each state on the DMV site, and simply counted them all. The site often lists everything required, including all the fees and all the steps it takes to fill out the application, so for every requirement, we simply allotted one point. Some states, Colorado, for instance, had about 20-30 things listed which meant that same amount of points was given. Others, like the ones on this list, had only about 4-5 requirements, or 4-5 points. We then ranked the top 7 states that had the least amount of points, since they count against each state in this case. But keep these things in mind before you park yourself and your business in one of these states purely because they list fewer requirements. You know how agencies like the DMV can be, especially when it comes to business regulation. They like to pile it on, and sometimes they don’t even tell you it’s coming. There may be some additional requirements not listed on the site, and even though it’s unfair, it’s how things work sometimes.

Also, since the online lists (which are linked to below with each item) certainly aren’t all in the same format, some could be more detailed than others, so even though the lists are longer, there may not be more required to get a license to sell cars. We just gave you the easiest states the best way we knew how, but be sure to do your research before considering our research Bible. Scan the requirements on the DMV site, and call the office if you’re still confused. For some states, additional resources are provided on the site so don’t forget to research those as well.

And if you’d like to know more about if you’re really getting into the right business, check out our list of 12 most in demand businesses to start in 2015. No doubt, those in demand businesses will carry through to 2017.

So here goes! We are starting our list of 7 easiest states to obtain a used car dealer license with the last of 4 states which share the fourth place.

4. Texas

7 points

Reliable vehicles are a necessity for getting around the great big state of Texas. You’re sure to do well as a used car seller there.

4. Virginia

7 points

Two separate agencies oversee vehicle licenses in Virginia. The Motor Vehicle Dealer Board handles new and used auto dealer licensing while the Department of Motor Vehicles handles the motorcycle, trailer, and recreational vehicle dealers.

4. New Mexico

7 points

If the application process for getting a used car dealer license in any state seems too overwhelming, don’t be afraid to outsource all the dirty work to a third party. Some might know a lot more about the process than you.

4. Arkansas

7 points

The application process in Arkansas is a lot more lengthy than the renewal process, so don’t worry, after the initial application things promise to get easier.

3. New Hampshire

5 points

Some of the requirements to get a used car dealer license can be numerous, even for the 7 easiest states to obtain a used car dealer license, but it’s worth it if that’s your livelihood.

2. Alaska

4 points

Alaska’s site makes this process sound extremely simple. But Alaskans deserve it for suffering through all those crazy cold temps.

1. Oklahoma

3 points

“People need cars. No matter what the state of the economy, people will buy new and used vehicles,” the Oklahoma DMV site states. And that’s it for our list of 7 easiest states to obtain a used car dealer license! Now it’s time to pick a state and get started.