How do you get a georgia used car dealer license without a lot or car lot? Well you cannot. You may find all sorts of information around the internet that say you can, but don’t believe it. My name is Gerard Fairley and I run a consultant firm in Atlanta, Georgia that specifically helps people get their Georgia Used Car Dealers license including a suitable facility or location. People purposefully use the phrase “How to get a dealer license without a car lot” to sell some of the creative programs out there that exist, just for people who want access to select Dealer Auctions (like Manheim and Adesa etc.) People continue to pick these types of dealer auction access networks or programs, because they are generally cheap and gives you quick access. But don’t be fooled, because this is not a license. It’s a program. These programs are created and set-up for people who may not be totally ready for the financial structure and responsibility necessary to run a Licensed Dealership.
But if you want the ability to sign your own titles, control your own dealer plates, your insurance, and surety bond…then you have to get a physical location so your georgia state issued license can hang on the wall. No exceptions. So if you are sure that you want actual license and not a program, then keep reading as I tell you about this first and most important step.
Do you need a Georgia Dealers License?
Do I need a Georgia Used Car Dealers License? Well if you are asking yourself this question, chances are you need it. If you are flipping cars on the side with the intent to make a profit, then you need a Dealers License. It’s a big myth, but Georgia dealer license requirements, has nothing to do with selling 5 cars in a 12 month period. That is just a barometer to measure and guide your actions by, and for the state to have a measure to flag your sales movements by. According to the state of Georgia, if you have intent to profit from car sales, then you need a license. If you are trying to figure out how to circumvent this state law and sell cars while keeping the titles open, or something else creative, then you are flagrantly breaking the law. If you want to do your business legitimately and not have to look over your shoulder, then go ahead and get your Georgia Dealer License.
In Georgia, you don’t have to have a car lot or lot location, you can operate out of a small office facility. Operating as an auto broker out of an office, gives you the same license as a company that has 100+ car lot location. You have the same license and ability to register your Dealership with any auction you like. You have the same license and ability to operate wholesale and retail in the state.
What is a suitable Location for a Georgia Dealer License?
Perhaps you are thinking you can operate your georgia dealership from home, if your home is zoned in a residential / commercial zone. If you cannot have (create) a separate address from your home address for your Dealership, then the answer is most likely no. Don’t take shortcuts on your location. I have seen people go to the class first (thats ok) or start looking for insurance or bonding (why, do this without a location?) first. However, the most important and to me the first step is deciding on your location budget. What can you afford to spend on your Dealership? What location do you wish to have it in? Are you looking for the cheapest route or a location on a busy strip ? Once you have a budget, contact a real estate professional to do the leg work of sourcing out a few legitimate locations, so you can choose one. If you go this route, you can be more sure that your location meets the proper state zoning codes. The most important first step to getting your Georgia Dealers License is to find you a suitable location. The state does not give very specific guidelines in terms of square footage. The requirements merely state a suitable small office or sales room or open lot. The state says you must meet local zoning requirements, (so they essentially put it back on the city or township) When the state says suitable, it wants you to have a small area that can support a desk and locked file cabinet for your customer’s records. Suitable location or facility means a few things. The space itself has to be within the proper commercial zone code that supports Dealer License (or Auto Broker Car Lot). Not all commercial zones support this type of business. The state may issue the license, but the city and town basically decide where you can have your business. And this is what the zoning codes are for, the city to organize and classify business locations. Suitable also means that it has to be “good enough” for customers to come in and transact business with you. This may be a little more subjective, but you prepare to have an inspector come in and take a look around during your application process. You have to have a location that is an established place of business which to include a sales room or sales office. You have to have a landline phone installed. You cannot use a mobile phone or voip, or computer line. The land line phone number has to be listed in the company name (business white pages) . I got this right out of the Georgia Dealer Application packet.
How to find a suitable location?
Finding locations for your used Car Dealership in the state of Georgia is not terribly difficult. What trips most people up is they don’t follow up with checking on the zoning first.
What I have seen many times is a person tell me, “Hey it was zoned two years ago when I last checked”, or I hear “Other dealers are in the building or location that I’m thinking about, so it should be good “ You have to remember that the city can change the zoning at anytime, leaving certain business “grandfathered in”, while keeping out new tenants of a particular type of business. So now you are a new business trying to open up and you find out that the zoning has changed and your application is rejected (meanwhile you locked into a 12 month lease or longer). As I stated earlier, my company does this for you with our Georgia Dealer License consultant services pack. However, you can utilize Craigslist or other listing platform to find locations or contact your local realtor who should have connections. If you use my firm to set up your Georgia Dealership, we have relationships with landlords around the entire state or Georgia. We can always find what you need, depending on your budget. You can expect to pay $275 per month on the low end for office space. Recently, I have see within the metro Atlanta area, seen suitable small 100 square foot office space in the proper zoning go for as little as $300-$325 per month to rent. Before you run and put down money on a location, you have to make sure that the city allows auto dealer license to be issued at a particular address. This usually starts with a visit or phone call to your local city or county records department to get steered to the proper agency or (zoning) office.
If you want me and my firm to set up your Georgia Dealership contact me on the information below: