Latina opened a car dealership in the United States and revealed how much she can earn per month: 'It wasn't easy'
Latina opened a car dealership in the United States and reveals how much she can earn per month: 'It wasn't easy' Photo: Via La Nación, GDA/ iStock
Beatriz Benavides, a Latina entrepreneur and founder of Ok Autos Sales Inc., shared her experience opening a car dealership in the United States, including startup costs, legal requirements, and monthly income potential.
His story was spread through a video posted on the TikTok account of content creator Jhonatan Olivares ( @jhonatanolivaress ), where he detailed the process that allowed him to establish his business in the city of Leesburg, Florida.
READ ALSO
Benavides explained that starting an average dealership requires an investment of around US$80,000. This amount includes approximately US$20,000 for the rental of the premises and the licensing process, while the remaining US$60,000 is used to acquire the minimum inventory , which he estimates at least ten vehicles.
Beatriz Benavides is a Latina entrepreneur who founded a car dealership in Florida. Photo: TikTok @jhonatanolivaress
"An average of US$20,000 goes toward renting the premises and obtaining the license, while the rest goes toward the car inventory," he noted.
According to the entrepreneur, a well-organized dealership with a steady flow of sales can generate monthly revenues of up to US$150,000 (about 600 million pesos) . The brands most in demand by her customers include Toyota, Honda, and GMC Yukon, known for their durability and resale value.
“My license took three months because I tried to get local permits, and it wasn't easy. You have to have city approval, and not all cities will approve a dealership anywhere, ” he explained.
READ ALSO
One of the most important procedures is obtaining a dealer's license, which is managed by the Department of Motor Vehicles (DMV) of the corresponding state. In Florida, this process involves meeting several requirements:
- Completion of a pre-licensing course approved by the Department of Highway Safety and Motor Vehicles (FLHSMV).
- Presentation of a liability insurance policy for at least US$25,000.
- Presentation of a guarantee bond of equal amount.
- Layout of a commercial premises approved by the authorities.
The process can take between one and three months, depending on compliance with the requirements. In Benavides' case, the delay was three months due to difficulties in obtaining local permits. "Not all cities will approve a dealership everywhere," he commented.
READ ALSO
Cars Photo: iStock
Florida offers different types of licenses depending on the type of automotive business:
- VI (Used Vehicles): for the sale of previously registered cars.
- VF (Franchise Dealer): for new cars under contract with manufacturers.
- VW (Wholesaler): allows operations only between distributors.
- RV/RU (Recreational Vehicles): for sale of mobile homes or similar.
Each type requires specific documentation, as well as compliance with specific inspections and conditions of the premises and inventory.
The first step in formalizing a dealership is to define its legal status, such as an LLC, corporation, or partnership, and register it with the appropriate Secretary of State. Next, you must obtain a federal tax identification number (FEIN), register for sales tax, and submit fingerprints for a background check.
In Florida, the license application is accompanied by the official form, the aforementioned documents, and a fee of US$300, to be submitted to the FLHSMV regional office.
READ ALSO
Dealers must have at least two policies:
- General liability insurance to cover damages to third parties.
- Guarantee bond to protect customers against inappropriate practices.
According to the specialized website Dealer 101, a dealer bond can be as high as US$50,000, with annual premiums starting at US$500, depending on credit history. For wholesalers, the amount drops to US$10,000, with premiums starting at US$100 and no credit check.
The commercial premises must also meet certain standards, including an enclosed space of at least nine square meters, a separate entrance, and a dedicated vehicle display area.
The Nation (Argentina) / GDA
*This content was rewritten with the assistance of artificial intelligence, based on information from La Nación (GDA), and reviewed by the journalist and an editor.
Follow all the Culture news on Facebook and X , or in our weekly newsletter .
eltiempo
