BestOnlineBid.com - Is it possible and what is involved in getting a dealers license in Texas in order to attend used car auctions

Is it possible and what is involved in getting a dealers license in Texas in order to attend used car auctions

I would like to make some extra cash in the summer by buying cars at auctions, fixing them up, and reselling them for profit. I understand that I need some type of a dealers license in order to attend and purchase cars at auctions, but I am not sure how to obtain one and if it is possible for an individual to own one. Can anyone shed light on how I might achieve getting the proper licenses and how difficult it is to do so? Thanks for the help!

Public Comments

You'll need to contact the Secretary Of State office for Texas. They will have all of the information on how to obtain a Used Car Dealers license. I don't know about Texas but here in Georgia where I live you can't just become a dealer by paying some license fee. You have to have two licenses. A business license to operate a small business in the state and a separate Used Car dealer license that allows you to buy and sell used cars. In order to qualify for the Used Car license you have to put up a $20K bond. You have to have a physical business address suitable for retail car sales (rent a used car lot) you have to have a business phone number and pay for proper signage and have them displayed at the business address. In other words it's not a simple or cheap hobby to do part time. At least not here in GA.
DMV - Auto Sales License Business License Tax ID Commercial place of business Insurance Surety Bond. Its not something you do to "make extra cash". Its a lot of money and time to get your license. You are stepping into very deep water. If you get your license and sell to public, you are taking a tremendous risk. If the brakes fail 23 days later, and the buyer hits a busload of nuns and orphans, you - the dealer - will be held liable as brakes are a safety issue. You have to be a professional in order to buy and sell to the public. We are bonded, licensed, and investigated to prevent exactly waht you are attempting - fly-by-night, part time dealers.