Car dealerships... RENT out cars??

[Maddie.A]

Hi all,

I'm new here as of 6 minutes ago lol. Thanks for taking the time to read this. I'm from the Bay Area in CA. Pretty new in the industry, started as a sole prop. about 2 months ago. Ok so to cut to the chase, for all of my California (or otherwise very knowledgeable) dealers- are we legally able to rent out our cars? Please provide me with ALL of the info that you know- also reaching out to our local Occupational Licensing branch to see if they have any info. Sometimes they can take forever to get back to you. Thank you!

 

[Alex Snyder]

@Maddie.A and welcome.

Is your dealership selling new cars? Are you looking for ways to rent used cars? Rentals have a lot to do with how vehicles are titled and insurance.

 

[Maddie.A]

Thank you for the welcome! We are selling used cars, and yes looking for ways to rent used cars IF possible, dont know if there are certain loopholes lol

 

[Alex Snyder]

Since you're dealing with used cars the titling issue shouldn't be an issue at all. But I would suggest researching it for your state. Insurance is going to be the biggie.

 

[Maddie.A]

Update- I called our local occupational branch, and their response was: "Dealer's license only allows for you to buy and sell cars, nothing else." I'm still wondering if there are ways around it, legally of course. Because from doing a basic google search, bigger car dealerships rent out cars, albeit not a super common knowledge concept.

 

[Patrick O]

From my experience, the new car stores I've worked at have offered rentals mainly as an amenity for service customers. I think the closest thing you'll want to look into as a used car dealer in CA would be lease here pay here.

 

[ChrisR]

May also reach out to some of the exotic rental agencies, and see how they do it. May have to set up a separate entity within the dealership to do the rentals, for proper licensing, insuring, etc.

 

[Gweedo]

My AFC rep was just telling me about a third party company you can use to manage the rentals. It covers the insurance/liability end of things. I'll post back when I get more info on the program.

 

[Alexander Lau]

After this current and upcoming crash, smaller dealerships that barely stay alive each month are definitely going to be looking for new avenues to make income. Maybe a slight pivot? Unsure of the laws in Cali, but they seem strict knowing everything else about CA.