Out-of State Dealer License – Shut Down

The Out-of-State Dealer License cancelled in Washington

You’ll see offers on the Internet to get you a wholesale dealer license in Washington.

They offered this for out of state folks wanting an easier way to get a dealer license.

This is now a SCAM!

WATCH the video below!

If you sell cars in your state with a Washington License, you are violating the laws of the State of Washington AND the laws in your state.

Here’s why…

Washington Wholesale Dealers Can’t Sell to Dealers in Other States!

The Washington Legislature created a new law  that prohibits Washington wholesale dealers from conducting business outside the state.

Here is what the Washington State Dealer License Blog says:

The Out-of-State Dealer License cancelled in Washington

The changes to this law state that wholesale dealers may only buy vehicles from,and sell to other Washington state licensed dealers.

Which makes the license worthless to out-of-state license holders

It also limits that no more more than three wholesale may share the same business location.

Applications have been submitted for out-of-state people by Internet companies. The companies advertise the service of doing the work to set up a Washington business and obtain a Washington wholesale dealer license.

So, these new out-of-state business owners are only located at a few addresses in Washington.  One address in Wilbur
has more than 300 wholesale dealers.

Because these wholesale dealers are not doing business here,
it is impossible for the Department of Licensing to monitor, investigate or regulate these businesses.

The wholesale dealer license law was set up to provide an a business plan where Washington dealers can have the option of only buying and selling at dealer only auctions or directly to car dealers.

Dealers with a wholesale license are prohibited from selling retail.

However, individuals across the country are using Washington flexible laws with no interest in doing business there.

There is no intention that any of the hundreds of wholesale dealers have ever been in any of their offices in Washington.

They pay monthly rent and get a mail forwarding service from these landlord companies.

The folks who use these services are not aware of the laws and regulations in their state or Washington. and often violate them causing issues with DMV’s and dealer only auctions and consumers

This year, the State of Indiana, for the same reasons mentioned, cancelled its wholesale dealer license completely.

I see this happening in the future in states such as NJ and Arizona and others where these license offers are being advertised.

If you want to buy and sell cars for profit, you must be licensed in YOUR state.  You must follow the laws in the state that you are selling the vehicles.

dealer license headquarters

 

Resources:

https://licensingexpress.wordpress.com/tag/washington-dealer-license/

http://www.heraldnet.com/article/20160308/NEWS01/160309296

http://www.theheraldbusinessjournal.com/article/20160403/BIZ/160409728

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