- The Co-op or Shared License Dealer License Scam.
- They say they are a consulting firm that will set you up with a dealer in your state or another state.
- They use the term dealer co-op or shared license. These dealers that they will place you with are usually set up as LLC’s with a manager who will provide you training and assistance. Some of the consulting firms will also provide assistance in obtaining your own license.
The “get you a dealer license” services cannot be offered to residents of all states. Why? Because states has set laws or rules to stop the service from being offered to residents of their state. Example: California
In California every modification of dealer ownership structure constitutes a restart and requires a new dealer license application, new bond and new dealer education certificate of completion.
Important point: Once you are paired with a dealer, the consulting firm has no legal responsibility for you using the co-op dealer’s license.
They will, however, as stated in the contract, continue to bill the monthly fee. You will also be charged other fees by the co-op/shared dealer license.