Car dealer licensing is regulated by the state where you live. Obtaining an auto dealer license could potentially provide you with an opportunity to make a sizable profit from the purchase and resale of automobiles. A car dealer license also qualifies you for various tax benefits and discounts on auto parts and other equipment.

1. You can save a great deal of money with a car dealer license. For example, you can attend private wholesale dealer auctions and potentially purchase deeply discounted vehicles in good running condition.

   Fact

2. Buying and selling cars without a dealer license violates U.S. law. Violating this law could leave you facing substantial fines and penalties.
   

   Limits

3. States do not regulate the number of cars you can buy or sell annually. With a dealer license you can sell or purchase as many vehicles as you wish.
   

   Taxes

4. As a licensed car dealer, you can write off any expense directly related to your business of buying and selling vehicles. This can include gas, auto repairs and even outings with potential customers.
   

   Tips

5. Fees and car dealer license registration and renewal procedures vary by state. Contact your local Department of Motor Vehicles to obtain additional car dealer license information and instructions on how to obtain a dealer's license.