Essential Rules on How to Buy and Resell Cars to Become a Car Reseller

Essential Rules on How to Buy and Resell Cars to Become a Car Reseller
Published on May 28, 2022

The automobile industry is overgrowing; there will always be a need to buy new cars due to technological advancements and new driving trends. Whether it’s a modern car or a collectible classic, buying and selling cars never dies. Therefore more people are interested in learning how to buy and resell cars to become car resellers and start their car dealership businesses.

This business might be too risky with no guarantees to make a profit. However, some guidelines can help beginner car resellers to improve and overcome all sorts of obstacles. It is essential to be aware that starting to work in this field requires understanding the market and the application process. This article will introduce the fundamental rules for buying and reselling cars to become a car reseller.

What is a Car Reseller?

It is a business at the retail level that sells new and used cars based on a contract with the manufacturer or other car resellers. This work isn’t the best option for people who want to make quick and easy money; it requires time, knowledge, and effort to identify how to buy and resell cars smartly and make a profit. 

How to Become a Car Reseller?

Obtain a dealer license

Ensure the business operates legally by registering at the Internal Revenue Service, choosing a unique name for the work, and deciding its structures. The next step is to meet the dealer license requirements, which vary from one state to another. However, all states oblige dealers to post surety bonds as a requirement to get licensed; these bonds guarantee the dealer will follow the state laws.   

Learn about how to buy and resell cars

Getting to know the market is always a good start; it is essential to identify which cars are best-selling and their value on the market. It applies especially to used vehicles; the dealer must have deep knowledge about their prices and expected ROI.

If someone wants to learn more about how to buy and resell cars, they have to consider the following;

Where to buy the cars from?

Dealers often order cars from manufacturers or other wholesale dealers using the credit lines they arranged with them to ship these cars with the help of an auto transportation company and store them in the inventory.

Learn more about car shipping for car resellers.

However, since the inventory space is limited, car resellers face a significant challenge in deciding what models to buy. Fortunately, there is a way to overcome this problem; dealers can sell cars that don’t exist in their store by contacting other dealers, known as “dealer trade.”

Pre-purchase check

Car resellers who want to know more about how to buy and resell cars have to check the used car’s condition before making the purchasing decision by examining the whole vehicle and looking for the VIN to ensure the engine originality.

Repair costs

Used cars may need some repairs to be resold for a better price. Car dealers have to keep the repairing cost in mind when calculating the vehicle’s total cost to estimate how much profit they will earn. 

Look for a trustworthy auto transport company

The next step is to find a reliable transport partner, which will provide a lot of support for the car dealership business; auto transport companies offer car shipping services, including open auto transport, an economical and affordable method used by car resellers to transport vehicles to the buyers. 

The other shipping type is enclosed auto transport. It is more costly but ensures complete protection for the shipped vehicle making it a perfect solution for transporting luxury and collectible cars. You can learn more about the advantages of enclosed auto transport.

Since choosing an auto transport company is essential, dealerships may spend considerable time searching and comparing different companies to pick the best service provider. However, there are few factors to determine whether the company can be trusted or not:

The company must be registered

Since the auto transport industry is highly regulated, all companies must follow the safety and insurance regulations set by the Federal Motor Carrier Safety Administration; a registered company has a valid MC number as a proof that they operate their work legally, and it is easy to verify the legal condition by checking the number with the FMCSA.  

It must be reliable

A competent transport company should have a noticeable track record of accomplishments and successful transport operations and a professional team with vast experience dealing with shipping types. The company must also have all the necessary equipment to perform its activities in the best way possible.

Good reputation and high rating service

Customer review is an important indicator to evaluate the company’s service quality and how hard they work to respond to all good and bad reviews to ensure their customers’ satisfaction. 

Balance the cost with quality of service

Car Resellers need to choose the auto transport company they want to work with depending on the criteria mentioned above; it is not recommended to pick the service looking at its price. Low price services are a big no in this field because the transport process requires lots of effort, equipment, and an experienced team. No company sells these features for a low price. That doesn’t mean going for the highest price services; a dealer should make the right balance between the cost and quality.


Many people are curious about learning how to buy and resell cars, which isn’t an easy job to manage. Car resellers must build broad market knowledge and choose a dependable transport company to work with.

Tempus Logix has years of experience working with thousands of clients. The company transports all vehicles across the United States and has a successful record of over 30,000 delivered cars.

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