: You must obtain a used vehicle dealer license from your state’s DMV.

: Depending on your state, you may need a separate consumer finance license to act as a lender (e.g., Texas requires this, while Georgia generally does not).

: Most states require a bond, often around $50,000 for retail dealers, to protect consumers.

: You need significant liquidity. Since you only collect a down payment upfront, you must have enough cash to restock inventory and cover expenses while waiting for installment payments.

Becoming a dealer involves shifting your focus from just selling cars to becoming a specialized finance company. Because you are the lender, your success depends on managing cash flow, rigorous collections, and strict underwriting to mitigate the risk of high-interest, subprime loans. Core Requirements to Get Started Legal & Licensing :

: You need a commercial office with a designated vehicle display area and a working business phone. Capital Requirements :