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Beware of Wholesale Licenses, Especially Indiana..!

Hundreds of Wholesale Dealerships Are Closed Every Month..!

DMV's around the country, and especially Indiana, are closing down wholesale used car dealerships at an alarming rate. The reason for this is that there are thousands of people around the country that are using wholesale dealer licenses to buy and sell cars retail, which is clearly illegal and hundreds of people are being fined thousands of dollars each and every month for doing so..! Search Indiana Cases>>


Search Legal Cases and Revocation Orders

Indiana issued an Alert on February 12, 2013 regarding the renewal of wholesale dealer licenses. The three main points of the Alert are:

(1) Plates are restricted to vehicles primarily used or stored in Indiana
(2) Your operations are primarily conducted in Indiana
(3) Audits will be scheduled to ensure compliance

You can search Indiana Administrative Cases for all the dealerships that are being fined and closed down. Please note that States are going after and fining both the dealership as well as the individuals involved.

The following is a list of recent cases involving The State of Indiana:

Taylor Auto Group owned by Dan Grissom is caught selling cars retail in Illinois and is fined $25,000..! The license is revoked and Dan Grissom is permanently barred from obtaining a dealer license in the future.

Joseph Auto Sales owned by Olayinka Loabanji is caught conducting business in Illinois and is ordered to cease and desist. The license is revoked and Olayinka Loabanji is permanently barred from obtaining a dealer license in the future. He is further ordered to pay a fine of $5,000.00 and must turn over all the monies earned while operating as an Indiana Wholesale Dealer to the State of Indiana..!

Nationwide Auto Wholesale Group, Inc. owned by Michael Bacon is caught renting plates and selling to the public. He is ordered to cease and desist and is permanently barred from obtaining a dealer license in the future..! His fine is $7,500.00 and must turn over all the monies earned while operating as an Indiana Wholesale Dealer to the State of Indiana..!

Riverwood Sapp Equipment was fined $750 for displaying vehicles off site, and agrees to adhere to Indiana laws about displaying vehicles on his lot in Indiana.

Auto Maxx, LLC owned by Curtis Burrow fails to inform Indiana that he has ceased operations as an Indiana wholesale dealer and is fined $15,000..! Imagine being fined $15,000 for failing to inform the State of Indiana you are ceasing business..!

Edgewood Motors owned by Nebiyu Tate is caught conducting business in Massachusetts and his license is revoked. He is permanently barred from obtaining a dealer license in the future, ordered to pay a fine of $5,000.00 and turn over all the monies earned while operating as an Indiana Wholesale Dealer to the State of Indiana..!


Using a Wholesale Dealer License is Asking for Trouble..!

Using a wholesale dealer license to buy and sell cars retail in other states is illegal and processing a retail sale through a retail dealer does not make it legal. Wholesale Dealers MUST be in the business of selling used cars to other dealers ONLY..!

A wholesale dealer can not interact with the public in any way, shape or form when it comes to selling their inventory.

If you have a wholesale license and you advertise a car to the public on a site like Craigslist.com, you are breaking the law..!

If you have a wholesale license and speak to a retail customer about a car you have for sale or conduct a test drive, you are breaking the law..!

If you have a wholesale license and you sell most of your cars to a local retail dealer who then sells the cars to the public, then both you and the local dealership are breaking the law..!

A person, intending to buy and sell cars wholesale, shall not partake in the retail process at all, including advertising, speaking with, or showing a car to a potential retail customer.

A person intending to buy and sell cars retail MUST have a retail dealer's license. The laws are very clear about this..!


Understanding Dealer License Laws & Legal Intent

All States have very clear laws regarding the opening and operation of used car dealerships and are based upon the concept of Legal Intent. A quick Google Search will help you to understand legal intent, however it is simple, intent means intent. A person intending to buy and sell cars to the public MUST have a retail license. A wholesale dealership can not sell cars to the public and using a separate retail dealer to process paperwork borders on Criminal Intent, aka Fraud.

When a person applies for a dealer license they do so under penalties of perjury, in other words, if you are applying for a wholesale dealer license, yet your intent is to sell cars to the public, you are committing perjury..!

When a wholesale dealer has a retail dealer process a retail sale on it's behalf, both dealers are committing fraud.

Every month DMV Investigators obtain a list from the auctions of all new wholesale dealerships who have signed up. Investigators then simply track the motor vehicles purchased by the wholesale dealer to see how and where the cars are being sold.

Hundreds of wholesale dealers across the country are being closed down and fined thousands of dollars. Why take a chance on being fined, getting a criminal record or being banned from obtaining a dealer license in the future?


License Procurement Companies Putting People in Harms Way..!

There are dozens of Dealer License Companies out there offering offering wholesale licenses as a way to get into the used car business. The only way to legally buy and sell cars to the public is to have a retail used car dealer license or be part of a Co-op retail dealer license.

Anyone who offers you a wholesale dealer license is putting you in harms way..! Don't Do It..!



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