If you are thinking about selling cars either on the street or in an online car auction, you will have to obtain the proper credentials to do such. You will need to have a dealer license. The dealer license gives you the authority and the freedom to sell and buy cars as a business entity. It is unlawful for you not to apply for that credential if you want to sell cars in any fashion other than as an individual who is selling your personal vehicle. The following is some information about auctions and the documentation that you need to operate in one.
How Do Auto Auctions Work?
Auctions are exciting events where business persons sell hundreds of vehicles to people who battle it out by trying to outbid each other. With a dealer’s licence, you will be able to buy vehicles from a variety of sources and then offer them at the auction to earn money. You can purchase vehicles from private owners, finance companies that have repossessed vehicles from their clients, junkyards, insurance companies and the like.
Auction License Requirements
To obtain a dealer licence so that you can buy and sell cars in an auction, you will need to meet some qualifications. The first qualification that you will need to meet is that you must be at least 18 years of age. Secondly, you should be fit to run a business in terms of finances and premises. You should have a building from which you can operate your business on a daily basis. Additionally, you will have to pass the required training courses to be considered as eligible for such licensing.
There are certain situations that will, unfortunately, disqualify you from receiving approval for the license. For example, you may not receive an approval if you have been convicted of a serious offense at any time within the past five years. Serious crimes are crimes such as drug trafficking, stalking, extortion, arson and the like. Other situations that could leave you with a denied application are situations such as disqualification from licence holding or registration and insolvency.
How to Get a Dealer License for Car Auctions
The process of getting a license approval takes about four to six weeks. However, your processing may be delayed if you turn in an incomplete form, or you don’t have all the information that you need to have to make the process go smoothly. You will have to have proof of identification when you lodge the form with the Australian government. You can use your passport, driver’s license, birth certificate or citizenship papers to prove that you are eligible to have the licence to sell cars at the auction. Additionally, you’ll need to pay fees when you lodge your application. The fees for the license are approximately $1,377 if you are only going to have the licence for one year. A three-year licence will cost you 2,583. There is an extra charge that you will have to pay for the organisation to conduct the criminal history check on you, as well.
Before you can apply for the licence, you need to pass a suite of courses that pertain to either automotive industry retail or automobile retail. These classes cover topics such as sales procedures, legal requirements, safe working practices, vehicle appraisals and more.
Get Started Today
Now that you know something about getting the licence that you need to get into car auction, nothing should stop you from applying. Complete the paperwork now so that you can engage in the fruitful auto auction venture.