License Types
Typically speaking there are four types of licenses issued to automobile dealers. Some states assign a class to these, for example a Class A Dealer License might be for an Independent Dealer and a Class B for a Franchise Dealer, etc. The four general types are:
- Independent Dealer or a person dealing in used motor vehicles only. This license permits the licensee to transact business at retail or wholesale.
- Franchise Dealer allows the licensee to sell new motor vehicles under an agreement with a manufacturer. This license also permits the licensee to sell used motor vehicles.
- Wholesale Dealer licensees may only buy from, sell to and deal at wholesale with other licensed dealers.
- Auctions are licensed to sell, on behalf of licensed dealers, through the bid process. Auctions may not sell retail