4 Dos and Don’ts as a Newly Licensed Car Dealer

You’ve received your car dealership license in NY or one of the other states where you do business. Now, you can buy and sell cars and conduct other related business. 

That’s great news, but there are some important things to keep in mind. This list of four dos and don’ts will help you maintain your dealer’s license in good standing and ensure you get the most out of your investment.

1. Do Display Your License Correctly

It isn’t enough to simply have your license. Many states have a specific requirement that you display your license where it can be viewed by the public.

This is also good business practice. Your license assures potential customers that you are trustworthy and have met or exceeded every standard set by your state. Display your license to earn trust and confidence from potential car buyers.

2. Don’t Exceed the Bounds of Your Dealer’s License

Does your car dealership license in NY specify that you are licensed for specific activities? There are a few different types of licenses that dealers might receive. It’s important that you only engage in authorized activities for the specific license you have been issued.

For example, you may have been issued a license to conduct private sales. This generally limits you to selling several cars per year as an individual but doesn’t allow you to open a lot or engage in wholesale transactions.

3. Do Maintain Insurance for Your Car Dealership License in NY

You had to provide proof of third-party liability insurance and other coverages to obtain your Alabama car dealer’s license. In order for that license to remain valid, you will need to maintain that coverage as long as your business operates. Pay attention to liability levels so that your insurance is adequate. That’s not just good practice for keeping your license, but it’s also good business policy.

4. Don’t Fail to Maintain Your Lot

There are physical requirements for operating a licensed dealership in most states. This includes having an office, maintaining separate parking or display areas for vehicles for sale, and maintaining appropriate utilities. The latter usually includes a landline phone. You must also have a business sign with the name of your dealership clearly displayed and a properly surfaced lot.

Keep up with these four items after you receive your dealer’s license. This will ensure that you’re in compliance with regulations and that you earn the trust and respect of your customers.