Car Dealers License Rip-off Scams Reports / Complaints :


As educators of prospective used car dealer dealers license owners, our consultants interact with many people who have been victims of Car Dealers License Scams.  

Such car dealers license scams offer to people who want to get into the used car business and get a car dealers license, the use of a car dealers license for a monthly fee that is usually $500 and the requirement of a several thousand dollar sign up fee.  The perpetrators of such con jobs say that they will get you a car dealers license in some far off State.

We want to warn you to use extreme caution about such offers to use a car dealers license.  We have spoke with many people that have been victims and have lost their money with these car dealers license scams.

We spoke with an individual recently who paid approximately $3,500 to an outfit that set him up with a wholesale car dealers license.  However, the car dealers license did not give him the ability to sell cars to the public.  Further, the State immediately took away the car dealers license when they learned that he was doing retail business in California with an out-of-state dealer's license.

Another person who signed up with the same car dealers license scam outfit, is now being prosecuted in for unlicensed auto sales, and various other crimes, when he followed the instructions of the "use our car dealers license program" .  That person will most likely never be able to get a legitimate car dealers license.

If you are offered such use of another's car dealers license, please be advised that you may lose your money and possibly get a criminal record.

If you are serious about getting your car dealers license, our information will help you satisfy the requirements to get your car dealers license.

Note:  Not all "rent a license" programs are scams.  If in doubt, please call a state dealer license Investigator.


WARNING:  Out-of-State licenses are NOT the best idea:


There are many programs online where you can "rent" a dealer license or get licensed out-of-state.  If you are wholesaling from auction-to-auction, it's difficult for your state to bust you.   However, these programs can be problematic, especially if you are advertising to the retail public in your state, even if you are a wholesaler who sells "through" a network of local dealers.  Even if you have a wholesale license in another state, by advertising to the retail public in your state, you are purporting to be a retailer and since you do NOT have a retail license in your state, the state considers it "unlicensed auto sales", which is usually a misdemeanor crime.  If you don't believe me, simply call your local DMV investigator and they will certainly tell you the same thing.



States are Cracking Down on Out-of-State Car Dealer Licenses!


Recently someone called me about advice because they were busted in their state for unlicensed auto sales.   What happened was they lived in Florida and had a dealer license based in another state.   They advertised a car on and an undercover DMV investigator pretended to be a customer.   Even though he had a dealer license in another state, when the Investigator found out that the dealer did NOT have a Florida dealer license, the DMV slammed the guy with a civil injunction lawsuit  against him and if he continues to sell cars in Florida with an out-of-state license, he will be prosecuted as well.  That unlicensed dealer has had to pay thousands in attorney fees for his defense.  The investigator was nice enough to give him a "slap on the wrist" with a civil suit only, but not all investigators are that nice - you can be prosecuted.   Do you want to take that chance?


In many cases, it's CHEAPER to get your OWN car dealer's license than getting an out-of-state license

Why pay monthly fees to an out-of-state company when the same monthly fees can be applied towards your OWN in-state car dealer license.  I talk to dealers all day and many tell me that it ended up being CHEAPER getting licensed in their own state.   If you know what the MINIMUM requirements are, it can be done.   Your state will tell you the requirements, but they will NOT tell you the easiest, fastest and cheapest way to get your  Car Dealer's license.   You can learn the easy, fast and cheap way here. 



At my local Manheim dealer auction there is a huge sign that says:

        "OUT OF STATE DEALERS:   If you purchase a vehicle, it MUST be exported outside of this state."   

Not all auctions have this policy, but the trend is for more and more auctions to follow this rule.   The auction does this per the state's request because the state knows most out of state dealers who buy, will try to sell that car in the state the car was purchased in.   This is a back-door method that the state is using to further crack down on unlicensed auto dealers.

What this means is that the dealer auction will NOT release the car to you because you have an out of state license - you need to show the auction a bill of lading from a trucking company that says the car is going to be transported out of state.   This can be MAJOR problem if you have an out of state license!  Do it the right way - get a dealer license in your OWN state in your OWN name.


A Car Dealer License in your OWN state is Not as Hard as You Think

When I got my license I realized it takes a little patience, but it is NOT difficult if you are aware of what to expect and what the minimum requirements are . In fact, the vast majority of licensed dealers don't have huge lots and fancy signs - they do the minimum required to get licensed.  The minimum requirements can be quite simple.



50-State Car dealers license information:

Alabama car dealers license

Alaska car dealers license

Arizona car dealers license

Arkansas car dealers license

California car dealers license

Colorado car dealers license

Connecticut car dealers license

Delaware car dealers license

Florida car dealers license

Georgia car dealers license

Hawaii car dealers license

Idaho car dealers license

Illinois car dealers license

Indiana car dealers license

Iowa car dealers license

Kansas car dealers license

Kentucky car dealers license

Louisiana car dealers license

Maine car dealers license

Maryland car dealers license

Massachusetts car dealers license

Michigan car dealers license

Minnesota car dealers license

Mississippi car dealers license

Missouri  car dealers license

Montana car dealers license

Nebraska car dealers license

Nevada car dealers license

New Hampshire car dealers license

New Jersey car dealers license

New Mexico car dealers license

New York car dealers license

North Carolina car dealers license

North Dakota car dealers license

Ohio car dealers license

Oklahoma car dealers license

Oregon car dealers license

Pennsylvania car dealers license

Rhode Island car dealers license

South Carolina car dealers license

South Dakota car dealers license

Tennessee car dealers license

Texas car dealers license

Utah car dealers license

Vermont car dealers license

Virginia car dealers license

Washington car dealers license

West Virginia car dealers license

Wisconsin car dealers license

Wyoming car dealers license




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The materials on  will help you get a dealer's license LEGITIMATELY in all the following states:  Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware Florida Georgia Hawaii Idaho Illinois. Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri  Montana Nebraska Nevada New Hampshire New Jersey New. Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania  Rhode. Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming.