How to make money selling cars
with a Dealers License in Texas in 2023
Would you like to get into
Texas dealer auctions in 2023,
I am going to show you how easy it is to obtain your own
Texas dealers license and gain entry, not only into the
Texas dealer auctions, but you will be able to take your
Texas dealers license and enter every dealer auction in
the United States and Canada with your own Texas dealers
license. We are going to talk about Texas dealer
licensing right now.
Before we get started, I
want you to be aware that I have posted a link to our
Texas Dealer license startup guide in the description
below, you can download this guide for free, you don’t
even have to enter your email, you can just click on
link in the description below to download your free
Texas
Dealer License Startup Guide
Or you can go
to Texasdealers.com and click on the Get Licensed Link
at the top of any page, you an view the startup video
here:
You can scroll down and download your
Texas Dealer
License Startup Guide for free, I hope you find that
free guide very helpful First let’s go over some
Texas dealership trends for 2023.
We have obviously
had a couple of very abnormal years in the motor vehicle
industry in Texas in the last couple of years. First of all,
things were going very good for Texas dealers at the
beginning of 2020 by some indications of sales volume in
the first quarter of 2020 it appeared that we could have
another record breaking year in the Lone Star State for the sale
of motor vehicles. And even during the first quarter we
were all hearing about a virus coming out of China, but
it did not really start affecting the car dealership
industry until about the middle of March of 2020.
And
then did things REALLY change. First of all, due to
covid restrictions many dealership lots had to greatly limit the
number of persons visiting the dealership and many, many
states decided that dealerships must be shut down
completely.
Many state and
city governments determined that dealerships were not
vital businesses and many governments across the country
required dealerships to close completely, some dealers
were allowed to remain open if they had a service
facility but many of us dealers are small, and do NOT
have service facilities or repair shops.
In fact, I
would say a very large percentage of the dealers that I
have trained throughout the United States do not even
have a garage at their dealership. There is a hand full
of states that require a dealer to have a repair garage,
but that is not the norm. So, any dealer without a
garage or repair facility that was located in a state
that required dealers to have a repair facility to
remain open, in fact closed. In fact, I actually saw
some dealers located in a state that required them to
close during the pandemic actually left those states and
opened there dealerships in other states.
Think about the
hardship on these dealers, they had to close the
dealership in one state and move to another just to keep
food on the table. So then for the next few
months Texas Dealers wer either were required to close
dealerships completely or drastically reduce the number
of persons that were allowed in our dealerships which
really reduced or completely eliminated the money that
was coming into our dealer's car lot.
At that time dealers in
Texas had plenty of
inventory and business was going well then the pandemic
hit, changed everything including our vehicle supply
chain.
During the pandemic, millions of persons
stayed at home and dramatically increased there use of
electronic devices, especially laptops used by kids
staying home from school and parents that were working
at home, which led to an unbelievably demand for
computer chips. The shortage of chips, used in
everything in a vehicle from brake sensors to power
steering to entertainment systems, has led motor vehicle
manufacturers around the world to reduce or stop
production, which increase the price of vehicles and let
to a shortage of vehicles as well. And this is part
of the problem that led to the problem we have
experienced in the last year, the motor vehicle
inventory shortage, which has had a very negative affect
on not only brand-new franchise dealers but used motor
vehicle dealers as well.
In 2021, Ford manufactured
about 700,000 less vehicles than normal as a direct
result of the ongoing semiconductor chip shortage. This
semiconductor shortage has also forced Ford like many
other motor vehicle manufacturers to change the way they
do business, prioritizing high-margin and strategically
important vehicles over others, deleting features where
possible, and shifting toward more of a build-to-order
model rather than filling dealer lots with inventory.
This could really alter the way that manufacturers
deliver vehicles to franchisees leading to a build to
order way of doing business. So instead of the band new
car model that manufacturers have used for over 100
years, where the manufacturer sends thousands of
vehicles to franchises lots and waits for customers to
come onto the lot and purchase a vehicle, this new model
could become the norm where a person places an order for
a brand new vehicle and the vehicle is made as per there
instructions with the exact options, then delivered to
the local dealership directly in about 2 -3 months. Ford
had great success with this ordering model with the new
Ford bronco. If you wanted a new ford bronco, you had to
order it, wait for it to be manufactured, then delivered
to your local dealership. This model was very profitable
for Ford because they did not have to have millions of
dollars of ford bronco inventory either stored locally
near where the vehicle was made or stored locally on the
dealership lot.
By the way on a side note, there are
some states that are trying to pass bills that would
allow a manufacturer like Ford, Chevy, Toyota etcetera
to sell a vehicle, have the vehicle manufactured, then
deliver the vehicle directly to the customer, therefore
bypassing the middleman, or the FRANCHISE dealer
completely. Right now, this is not allowed, most motor
vehicle manufacturers are required by law to sell a
vehicle to a franchisee whom must then sell the vehicle
to the customer. Several electric motor vehicle
manufactures have lobbied our state legislatures to
allow them to sell and deliver a vehicle directly to a
person whom which allows them to buy pass dealers
completely. We are keeping a watch on these types of
bills which could really affect our industry in a
dramatic fashion.
Another advantage to this model for
new vehicle dealers is in the numbers themselves. 94
percent of vehicles that were sold in 2023 sold at or
above MSRP where only 12 percent of vehicles sold in
2019 sold at msrp, think about this from the
manufacturer’s perspective of profits. This could be the
new norm for brand new motor vehicle manufactures to
sell vehicles on a pre-order basis only. So, some
positive news for us is that slowly but surely the
semiconductor chips are starting to become available
again, not very quickly but slowly and surely the are
beginning to return.
So, what does this mean for used
motor vehicle dealers in Texas? Well it is great news
because we are getting ready to see a HUGE influx of
vehicles that are going to flood every dealer auction in
Texas and throughout the United States.
Here are a couple of scenarios that could
lead to more vehicles going through the dealer auction lanes
in Texas.
First of all, RENTAL RETURNS You are probably aware
of this, large rental car companies like enterprise.
Thrifty, and hertz will buy several thousands of brand
new vehicles to rent to customers and they normally rent
a brand new vehicle for about 2 years, when they have
rented a vehicle for 2 years and made their money with
it, they will then sell all the vehicles they have been
renting so they can buy more brand new vehicles so the
vehicles they are renting are going to be fairly new
with low miles which is what rental car customers have
come to expect, I mean if you rent a car from enterprise
you are not going to expect to rent a car that is 5 or 6
years old with 80 or 100 thousand miles you expect a late
model vehicle with a low number of miles for the money
that you are spending on the rental. So, in the past the
rental car companies would sell vehicles that they have
been renting at dealer auctions. Most rental car
companies sell there used fleet vehicles at dealer
auctions when the vehicle is around 2 years old, but
that model has changed in the last year or so because
the rental car companies realize they are unable to
replenish their rental car fleets because there are no
new vehicles to purchase because of the chip shortage.
So, in order to remain in business, they have been
holding onto their rental car fleets much longer than
normal, which led to a massive reduction in the number
of rental returns that are coming through the dealer
auction lanes. During normal years in the past, you
could go to your local dealer auction and one day, you
might see the enterprise lane with all the enterprise
rental return vehicles coming through one lane, in the
lane next to enterprise you might see the thrifty rental
car lane with all the thrifty rental returns and then in
the dealer auction lane next to that you might see the
hertz rental returns coming through. Well now that the
rental car companies are starting to be able to
replenish there inventory, we are not seeing the rental
returns coming back through the dealer auctions lanes,
this is really great news, so we as used dealers are
becoming able to replenish our inventory because of the
rental returns that are coming through the lanes again.
Another great thing that I see on the horizon is the
return of the off lease vehicles through the Texas dealer
auction lanes.
Many consumers in the State of
Texas, the US, and abroad
prefer to lease vehicles instead of purchase vehicles
outright and there can actually be some tax advantage to
leasing especially for some business owners. In fact, in
2021 believe it or not nearly one out of four vehicles
were actually leased instead of sold out right. So, we
do have customers that want to lease a brand new vehicle
every 2 or 3 years. No, the problem that these customers
have experienced recently is because of the chip
shortage as well. Think about this, when a person that
leased a vehicle is nearing the end of their lease term,
they will normally want to lease a new vehicle to
replace the vehicle they are returning. Well in the last
year there have not been many new vehicles available to
lease so instead of returning the leased vehicles, many
lessors have renegotiated there lease to keep the
vehicle another year or two which has dramatically
reduced the number of lease returns coming through the
auction lanes.
During NORMAL times when a vehicle comes
off lease it comes through the dealer auction lanes. I
remember the day when I would just stand in the lease
return lanes at a dealer auction and buy as many leases
return vehicles that I wanted. One day at the auction
you might see Ford Credit, where all the 2 and
3 year-old fords that came off lease were coming through
the lanes, then the next week you might have witnessed
GMAC day where all the 2 and 3 year old chevy and gmc
vehicles were coming through the lanes. Well with so
many lessors hanging onto their vehicles at the end of
the lease we have seen a shortage of lease returns
coming through the lanes as well, well good news. We
know that some manufacturers are at least beginning to
get caught up we are now seeing some lease returns
coming through the dealer auction lanes in fact it
appears that we are seeing a dramatic increase in lease
returns coming through the lanes, this is great news and
I do feel that are going to see explosive growth in our
industry in 2023.
The average American car buyer is
ready to buy, we have a pent up buying demand that is
going to explode in 2023 that I believe will lead to a
record year for motor vehicle sales.
So how do you get
into the dealer auctions, with a Texas dealers license
that is how.
We have helping entrepreneurs just like
you obtain a profitable Texas dealers license, and I am
an approved training provider for the State of Texas,
Texas dealer licenses are regulated by the Texas
Department of Motor Vehicles that is the Texas DMV and
the training course we provide is approved by the Texas
DMV and will meet your mandatory dealer pre-license
training requirements. As stated earlier you can
download your free Texas Dealer License startup manual
in the description below, remember you do not even need
to enter any contact information or email you can just
click the link and download it for FREE!
You can
view more information about the Texas Dealer License
Training course by watching this dealer video:
It is
much easier than you think to obtain a Texas dealers
license and you will learn all the startup requirements
when you take your online dealer training course. The
online dealer training course that you must take is only
$149 and that includes your state mandated 6-hour
training course. You can easily watch the training
videos at your convenience. You can watch all 6 hours
today, or if you want to watch a couple of hours today,
maybe an hour tomorrow, then finish up next week or next
month, or even next year. Our state of the are learning
management system will track your progress and when you
have watched all 6 hours of your required videos, your
official Dealer Educational Certificate of Completion
will just download automatically, and I have more great
news.
View this video to find out lending
options for starting a Texas Dealership:
The
Texas
DMV Dealer Certificate of Completion that you
download when you have watched all the videos NEVER
expires. You can hang on to your certificate and apply
for your Texas dealer license today, next week, next
month, next year, or five years from now. Not only is
the State of Texas ranked as the best business
environment in the country the State of Texas passed a
great law that says a person must only take the dealer
pre-license training ONE TIME. In most states a dealer
license educational certificate of completion expires in
6 months or a year after the course, but in Texas you
can take your required dealer pre-license training and
your official certificate of completion will NEVER
expire, just be sure to keep it in a safe place so you
can use it at any time in the future when you are ready
to apply for your Texas dealers license.
You can
view the new dealer laws in Texas by watching this
video:
You know I
am obviously partial to this great business because I
have been involved in the motor vehicle dealer industry
for many, many years, but I truly believe that having a
motor vehicle dealer license is one of the greatest
businesses on earth. I have helped entrepreneurs like
you that have absolutely no idea of how to get a
dealer’s license and I have walked then step by step
through the entire startup process and helped them
launch a profitable business with their own Texas
dealers license.
Before you enroll, I encourage you to
read the reviews on our website, just go to
Texasdealers.com and click on the link at the top of the
page that says Course Review, these are all folks just
like you that have taken our training course and agreed
to have there testimonials ad photographs posted on the
texasdealer.com website.
I procrastinated
years and years before I finally made the moves to get
my own dealers license and when I did make the move to
get my own dealers license, I wished I had gotten the
license much earlier.
The dealer training course
that you take is only priced at $149, you will learn the
step by step startup process, you will learn how to run
your new business with 100 percent compliance that way
you will be able to run your Texas dealership for many,
many years and the profits in this industry are as high
as you want to take your new business. You can sell a
few vehicles a year with your Texas dealers license, or
you can use your Texas dealers license to sell a few
thousand vehicles a year.
What are you waiting for?
When you are ready to change your life with a Texas
dealers license just visit texasdealers.com and click on
the big blue
Enroll
Now button.
We are approved by the Texas
Department of Motor vehicles to provide you mandatory 6 hour
dealer pre-license course, so when you are ready to make the
move, click on blue
Enroll Now button.
We are here to help you start your
Texas motor vehicle dealership!
Delus Johnson-Lead Instructor Automobile Dealer
Training Association