Rent a Dealer License

Rent a Dealer License? Ha!

Rent a Dealer License? Really?You’ll see web pages advertising “Rent a Dealer License”.  You pay a monthly fee and you are put on their license in another state.

(This is not the same as the Indiana dealer license offers you see.  Read here to understand the problems with an Indiana wholesale dealer license.)

These offers of renting a license for a monthly fee will add you to their license in another state.  You will then be registered to attend dealer only auctions and purchase cars.  As a dealer you will be able to resell the car to the public.

Well, yes….. BUT…. Can you rent a dealer license?

Here are the road blocks these companies don’t mention.  They don’t lie, they just don’t tell all the facts.

If you live and will be doing your business transactions (sales) in your home state, not the one you’re licensed in, most likely you cannot legally sell cars for profit in the state you reside.

Your new dealer license is good to do business only in the state it is issued.

Want to Be a Criminal? No?

Your home state requires anyone DOING BUSINESS in the state to be licensed under the statutes of the state.  If the car is in your state and you are showing and selling the car in your state then your state requires you to be licensed in your state. PERIOD. no if ands or buts.  For you to do otherwise may be criminal, usually a misdemeanor.

If you can rent a dealer license, why can’t you rent a contractor’s license or a beautician’s license?

All licensed business: car dealers, doctor, real estate agents, lawyers, contractors, etc, must be licensed IN the state they are providing the service or product.  Period.

Protect Yourself…….Contact Your State Licensing Agency

Before investing in these “rent a dealer license” offers, call your state licensing agency and ask them.

Few dealers will take this risk to add individuals to their license.

There are also risks for you, too.

It’s like a prearranged marriage; where two parties are joined together without knowing each other but their future fortunes and losses depend on the actions of the other.

Here are some of the issues:

applyThe money you owe the dealer every month could be used to invest in your own business, not his.

applyWhen you become a member of a business you are subject to the rights and obligations of all the other members, most of whom you don’t know and never will.

applyThe dealer could fail or close.  Then you lose it all.  Without a license, you cannot not buy inventory nor sell any of the vehicles you have on hand.

applyIf you have any assets in the business, such as pending sales, they could be tied up or lost in the case of a lawsuit against the dealer.

applyAs there are more members added to the license, the less control you have and your assets are at greater risk.

applyMost states require that sales of vehicles within its state’s boundary must be processed by a licensed dealer in the state.


Don Massey A Colorado Dealer

Don Massey
A Colorado Dealer


Listen up!  If you decide to do this, make sure you have a lawyer review the contract. Verify with your state licensing organization that you can legally sell cars, under the licensee, within the state you reside.

Again, before investing several hundred dollars in a “rent a dealer license” offer, ask your state licensing organization about the legality.

Or better yet, …….. get your own license.  Don’t depend on someone else! 





Obtain Your Dealer License!



All you need is to get the right tools and systems working for you to get your license.

You’ll find all you need on this website!



All you need is to get the right tools and systems working for you to get your license.

You’ll find all you need on this website!






Rent a Dealer License — 25 Comments

  1. Hi Don,

    Thank you for the time your are taking to answer all these questions. Really appreciate it.
    I live in California, have been handling technical side of this business for years (advertising), I have seen many wholesale dealers that use their garage as their office to fulfill DMW location requirement. Any information on that?


    • James
      A wholesale dealer in California is not required to have a display area since there is no retail traffic. The wholesale dealer
      does not have to have signage for the same reason.
      The decision to use an office in an home or in the garage would be dependent on the zoning commission in your city or county.
      If they approve it, then you complete…. OL 902 Property Use Verification for Vehicle Dealer’s License…. and submit it with your wholesale
      dealer application. This confirms to state dealer licensing group that you have approval to locate your wholesale dealer business in your home or wherever.

    • Salim
      If you watch the videos on the page for the comment you will see that you can’t “rent” a dealer license and if I did make you a member of my business it would be of no use in Texas.

  2. Thanks Don,

    Great information, wish I had seen it a few years ago when I got screwed by one of these dealer scams. I was a dealer several years before, leasing and finance, but NY state stopped allowing leases, so I was out of business and sold the building, and didn’t want the overhead, so I let my license expire, bad mistake. lol

    Years later I decided to get back in business as I had a large client base of customers who kept calling me as I specialized in high line vehicles and sold many which came off lease. Long story short, I was mislead by Autoventure deal, which I see changed name, guess for all the complaints they got. Like many scams, they change names to hide their dubious track record, so here is my warning, if you see an owner with name Tim or Timothy, run for the hills. Your information is spot on, and with new dealer requirements, it is impossible to operate under any of these dealer license scams. PERIOD

    • Hi Don, I have previously bought and shipped vehicles overseas without registration and without a license. While those were an occasional gig, would I need a license to export frequently as a business?

      • Jim There is no license to “export” vehicles. Your state has no interest in exports. It’s a Fed issue and as you know, all you have to have a title and bill of sale. The feds do not require a license of any kind. I would recommend you consider a wholesale dealer license, if your state has one, so you can attend dealer only auctions and purchase your vehicles at wholesale prices. Increase your profit on each overseas sale. Don

  3. Hi Don thanks for the informative website, I’ll be purchasing the ebook this week and look forward to communicating with you. I have over 20 years experience in the retail business.
    I’m looking to dovetail used car sales with another business concept.
    I’ve noticed in my state (ct) you need a business location with at least 1 garage for repairs and 2 spaces outside for retail display of vehicles.
    My first knee-jerk idea was to find the cheapest warehouse space possible.
    Either way the cost of doing business is going to be $1000 per month or less if I’m lucky.
    So “renting” another persons dealer plate is not appealing to me.
    From what i have read you aren’t actually renting the license (out of florida), there is some llc created and you are a member, probably without knowing who your partner is.
    I’ve come across your site after shopping for cars and meeting various people with Delaware dealer plates, after questioning the guy he told me that he rents the plate, attends the auction and the company he rents from is out of florida.
    No offense against anyone but i would guess the guys IQ around 80. I don’t think he is aware that he can legally sell a car in ct from a florida license while he resides and is doing business out of his backyard in ct.
    But I’m sure the company he pays money to didn’t inform him of this factoid.

    • Michael… Your last statement is exactly right. These companies who offer out of state locations to have a license do NOT inform the new licensee that he/she has to follow the licensing laws in the state where the vehicle is located and where it is demo’ed. These companies are landlords, that’s it. They are doing nothing illegal. It is the licensee that is responsible. I talked with the head of a western state licensing group. He said the law does not allow us to regulate these license mills. We can’t regulate “landlords” of any business.
      I have had numerous discussions with folks who have gone the route of co-op or shared licenses who were “discovered” by their state organizations and were slapped on the wrist, or fined and denied access to a dealer license permanently.
      Here is an article that shows the extent of the problems caused by these landlord locations. One location had 1200 dealers.

    • Paul
      I have no tags for you to purchase because my tags are licensed to my business through the DMV and may not be used for any other person or business. They are for vehicles I own and may not be put on any other vehicle.
      If I allowed anyone else to use them I could be fined or worse case lose my license because I would be involved in a collusion to cheat the state out of registration revenue.
      If the vehicle the tags are placed on would be involved in a traffic violation or worse case a hit-and-run, my business name would show up as the owner of the vehicle. I don’t think I want to take that risk either.
      For these reasons, I don’t know of any dealer that would sell or rent their tags.

    • Tim
      A dealer license is a required business license to buy and sell vehicles. This includes any vehicle that is titled; cars, trucks, RVs and motorcycles.
      Most people refer to it as a car dealer license or auto dealer license but most states include any titled motor vehicle. In the application, you’ll usually be asked to declare the types of vehicles you’ll be buying and selling. The license requirements for each may vary. You can check your state at

  4. Don, in my state you don’t need a license unless you sell more than 5 cars a month. i don’t sell that many but how do i get a dealers license plate so that i can at least drive these cars around until i sell them without having to register each one with my insurance. can i buy fleet insurance and just have a dealers plate without having to get a dealers license because in my state it is not required until i start selling more than 5 cars.

    • Hi Kayla

      Thanks for your comment. You need to verify your knowledge. I don’t know of any state sets the cars, that can be sold, at a monthly level. Example Arizona if an individual sells 5 or more a year they must be licensed i.e. they can sell 4 a year….. maybe.

      You must verify with the department regulating dealer licensing in your state. Do not go by what someone has told you or you’ve read in a forum. Another example, go to this page on my website: and read the yellow highlighted information about Georgia. In my state, Colorado it’s easy to read the statute and assume one does not need a license if you sell three or less a year. The DMV says the number is ZERO. Statutes are written by lawyers. They use terms that can be misinterpreted by a non-lawyer reader.

      Dealer plates are issued AFTER one gets a dealer license. No dealer license… no dealer plates. It makes it convenient for the dealer to drive and demo cars to a buyer, the ones for sale. Dealers don’t register the cars they purchase for resale, so they can’t have a plate through the registration process as a retail buyer is given.

      You may call me for more info. My phone number is in the contact info on my site.


    • Lorenzo

      All states require a physical business location as a license requirement. Any dealer can sell on Craigslist. Craigslist is just an advertising medium. As a dealer the actual sale takes place at the business location. So I’m a little confused about your question.


  5. hello, thanks for the information. I buy cars on copart auction how can I get a license to use on this website because I pay $200 just to rent a license, kindly put me through on how to get a license

    • Olalekan

      Browse through the pages on the website and you’ll find helpful information plus eBooks that I provide to show you exactly how to get a license and the insider information on running a profitable operation. I’ve had my license for over 8 years. I also provide free consulting. Good luck in your efforts.


  6. Great article 🙂 and might I add for anyone else reading this forum; I did go through a company where I “rented” a dealer license for $350 a month in order to gain access to dealer only auctions … I did gain access to a major auction and it was a fun experience, however if you are limited to one at time car sales and staying under your states limit (usually 5 per year) it will be extremely difficult to make anything close to a profit or justify the massive risk … It wasn’t exactly a scam, but you might find the numbers just don’t add up … There are some good deals to be had at the auction, but the cost of gaining access seems to negate any profit to be made … Is Craigslist a better deal ? Who can say for sure, each one must make that judgement for themselves … I think that after one or two more trips to the auction I may just give it up … a little poorer, but hopefully wiser : )

    • Paul

      Yes, all the “rent a dealer license” programs have limitations because you cannot RENT a license of any kind. They can put you on the “employee or representative” list at auctions but as you found out, that’s limited in what you can do after purchasing the car because you’re still not a dealer as far as sales to the public are concerned.


  7. Everything sounds great but before I pay I would like to no what restrictions or requirements would prevent me from obtaining my license. For example(s) Credit score, liquidity, driving record, criminal history, etc. Any response would be appreciated. Oh yeah, thanks for giving me the heads up about Indiana and the “landlords” because that’s exactly what I was going to do



    • Ronnie

      Only your state licensing group can give you the exact requirements that you can review to see if there are any personal issues, such as credit scores or criminal history that would affect your application.

      My resources give you alternatives such as a business location.

      Thanks for your questions.

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