Starting a used-car dealership usually means: confirm licensing with your state DMV or provincial regulator, choose a legal structure, secure an approved location, arrange insurance and any required bond, open supplier accounts such as auctions, set up paperwork and tax registration, and choose the software to record stock and deals. Requirements differ widely, so start with the regulator.
The order most people follow
- Licensing: find out what your regulator requires: training, background checks, a bond, location standards.
- Business basics: structure, tax registration and a business bank account.
- Location: some regions specify signage, office and display requirements.
- Insurance: garage liability, inventory cover and any bond.
- Sources: open accounts with auctions and wholesalers.
- Paperwork: forms for sales, financing and disclosure that suit your region.
- Software: a system for stock, leads, deals and your register.
- Marketing: listings, a website and a reply routine for leads.
Software choices for a small start
A new lot rarely needs a large, expensive platform. Dealer Garage's free plan covers inventory, customers, vendors and most paperwork, and Basic adds the bill of sale, garage register, lead sync and Marketplace posting for a one-time $99. See Dealer Garage for startup lots.
Keep from day one
- A cost record for every car.
- Copies of every signed deal.
- A backup you test.
Questions to ask your regulator first
- What licence do I need and how long does it take?
- Is training, a bond or a minimum location standard required?
- What records must I keep, and for how long?
- Which forms must be on an official template?
Questions people ask
How much money do I need?
It varies widely by market, regulator and inventory. Build a budget from your own quotes rather than a generic number.
This is general information, not legal advice. Rules differ by state, province and territory and change over time; confirm what applies to you with your regulator or a qualified adviser.
Try Dealer Garage
Dealer Garage is installable dealer management software for independent used-car dealers in the US and Canada: inventory, leads, deals, dealer paperwork, Facebook Marketplace posting and email campaigns, with records stored on the dealership's own computer..