4 Myths About Starting a Car Dealership

There are some myths about becoming a car dealer that might discourage you from taking the opportunity to open your own dealership. However, it’s important that anyone who is interested in this endeavor knows the facts.

Myths About Opening a Car Dealership

Following are some of the biggest myths about starting a car dealership, from getting a Texas car dealer license (or a car dealership license in Georgia or any other state) to how much experience a person needs to have in the business.

Myth 1: There’s Too Much Risk Involved

While it’s true that starting any type of new business carries a certain amount of risk, dealerships, specifically franchises, carry less risk than many other types of businesses. 

If you’re interested in opening a dealership franchise, the work the franchisor has already invested in it makes it less risky. There is a business model for dealerships to follow and best practices have already been established.

Myth 2:  You Don’t Need a Texas Car Dealer License If You Aren’t Located in Texas

If your dealership often sells cars to customers who live in another state, you might need a dealership license for that state in addition to the state in which you are located. States have different regulations about licensing, so it’s important to understand when you would need multiple licenses.

Myth 3: You Need Experience in the Auto Dealership Industry

Although it makes sense that some experience in the industry would be beneficial, with a car dealership, it’s not a requirement. There are companies that offer formal business training and ongoing support to those interested in opening a car dealership.

You can get training on the important standards of the industry, procedures, and best practices while you receive expert advice from consultants and experts. While experience in the auto industry does help, it is possible to own a successful dealership without it.

Myth 4: Getting a Car Dealer License Is Difficult

Auto dealer licenses are some of the most common license types needed; they’re required in just about every state. In general, if you sell over a certain number of cars in a year, you need a license. 

Receiving this license is as easy as submitting an application through a licensing company that includes information about you and your dealership. The company submits the application to the state, the state processes it, and you’ll receive your car dealership license.

Don’t let myths about starting a car dealership deter you from your dreams; always search out information about the facts to make sound, educated decisions about your business.