Insurance requirements vary from state to state – both in terms of the coverage amounts as well as in the types of insurance required. For example, in Illinois, dealers can either obtain three separate insurance policies that cover bodily injury/death per person, per accident and for property damage for a total of $350,000 or get a combined single limit coverage for $350,000.
Your inventory is the single largest cost you will have when opening your dealership.
In order to successfully open a car dealership you must plan for a variety of costs.
Proper planning and consultation with specialists can help you launch your dealership without unnecessary difficulties and last-minute surprises.
Licensing fees sometimes include an application fee, a licensing or permit fee, a fee for your dealer plates, an additional fee for your salesperson and for additional locations (if you plan on opening more than one dealership location).
Almost all states require that auto dealers obtain an auto dealer surety bond as part of the licensing process.
The higher an applicant’s score the lower the rate or bond cost.
For example, applicants with high scores are typically offered rates between 1% and 3% of the total bond amount.
Apart from the most straightforward costs, such as your business registration, your location and inventory, there are other costs that you may not think of initially.
These include getting legal and accounting advice, The total cost of opening a car dealership is generally considered to be upward of 0,000 to as much as 0,000.