Wholesalers have less overhead in general but their profit margin is also generally not on par with the retailers. These dealers cannot sell to the public, they can only flip cars to other licensed dealers. This can also be lucrative because of the dramatically decreased overhead since inventory is not purchased and employees are not needed. California Auto Brokers introduce a buyer to a seller and get paid by one of those parties, never both. Auto brokers don’t sell cars directly to the public and they don’t buy inventory like other types of auto dealers. This dealer license type may eventually meet its end in California, however, brokering vehicles still exist.
#HOW FAR CAN AN OBJECT EXTEND FROM YOUR CAR CALIFORNIA HOW TO#
This is even more vital to the health of a used auto dealership, which is why it was important to create some content around this exact subject matter.Ĭlick this button for an important episode from season 2 of the Your Car Dealer Podcast that discusses how to start flipping cars while living on a budget. Let’s be honest, keeping a low overhead is critical to every business. The used car dealership business model flourishes well in California, although some of the larger cities present certain challenges. Whether small “Mom and Pop” shops or larger dealerships, these are not franchised dealers. These are the auto dealers you see on the corner. Retailers are the most popular license type since they can interact with the public. What are the Types of Used Car Dealer Licenses can I get in California? Retail Auto Dealers