New and Used Car Dealer Ratings - How to Buy From Private Sellers Without Paying Sales Tax

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In most states, opening your own new and used car dealership requires undergoing a simple licensing procedure. However, the requirements you need to fulfill vary from state to state as well. But, regardless of where you do business, posting a required used car dealer bond, as well as other repeat requirements is still among the most important ones. Aside from protecting your business and yourself, you're also doing something to help the environment. You can click here to learn more on How you can buy cars from private sellers without paying sales tax.

"New dealers can meet all the legal requirements for a start-up without jeopardizing the funds they need for opening the showroom," said Rodnicki and Korsmeyer. "However, many sellers find it convenient and inexpensive to postpone the licensing exams until they find the car they want, after which they can complete all the necessary paperwork at the approved speed." That's where gap insurance comes in. Find out more about car dealeships at www.royal-buick-gmc.com.

In order to keep down the cost of starting a new and used car dealership, some sellers add-on fees in their contracts. If you're an established dealer with years of positive customer feedback, you can often get away with very low initial prices for new vehicles. However, those without established reputations and/or poor reviews may be asked to pay the full retail price for new cars. For example, if a seller quotes you a retail price of $1500 on a car you find at a new car dealership, but adds a fee of ten percent (or even more) for their 'added convenience,' you'll probably never get that kind of deal anywhere else.

A new car dealership won't make a nickel, unless customers are willing to buy. To get a larger customer base, new car dealers focus on selling used cars as well. In the past, people bought used cars at dealerships, took it home and traded it in. Today, many people simply "shop online" for used cars. When you add all of the extra costs and hassle associated with buying from a car dealer, you can see why buying online is the way to go. 

Some states don't require licensing, while others do. In a handful of states, you can get a separate, used car dealer license just by meeting the state minimum requirements. Unfortunately, most states don't offer this option. Instead, they force dealers to purchase their own government-issued IDs and then go through all of the red tape required to get dealer status. If you want to avoid all of the hassle, a separate used car dealer license type is your best bet.

New and used car dealers are subject to sales tax, vehicle registration fees, and a variety of other regressive sales tax rates. In addition, vehicle appraisal and title loans will also tack on expenses that aren't reflected in dealer quotes, such as title insurance and dealer markup of the car. Add these costs onto what you pay for vehicle sales and you'll understand why paying a broker might not be the cheapest or best deal. If you're buying a car from a private party, instead of a dealership, you can avoid all of these fees and have full control over price, along with full identification of the car, all the paperwork involved, and much more. So whether you're buying a new or used vehicle, you can save money by shopping online!  Get a general overview of the topic here: https://en.wikipedia.org/wiki/Japanese_used_vehicle_exporting.