How To Become A Distributor To Start Vehicles Business?


A vehicle distributor is the one who is involved in the selling of cars. The companies which manufacture the cars cannot have a channel of their own that is also involved in the distribution of the vehicles that are manufactured. This is because, the distribution channel required in order to make the sales of the cars in the various parts of a country as large as India can lead to massive investment to be made as well as the production units need to be set up in the areas where the sales are to be made. A better option that is available with the car manufacturing companies is that they can avail the services of the companies which are involved just in the distribution services that are offered in the cars. The distribitors of the vehicles can make money in two ways. One, they can make money on a commission basis in the selling of the cars. Secondly, they can make money also on the various financial options available to the buyer while buying the cars. In the guide to follow, we are going to discuss about the various aspects of a car distribution business and see as to how to start the same.

Certification training

The business that is related to the distribution of the cars is the one that is involved in the huge investment to be made. Hence in order that you need to start a business in the field of car distribution services, you need to first take the state-mandated certification class of becoming the distributor of the cars. The requirements that are attached to this may vary according to the rules of the different states. There are various options in order to undergo a training session in the car distributor certification. This involves various options like the online training that is available and also the setting based on the classroom coaching. The education modules are based upon the certain number of hours which is needed to be strictly completed.


There are various exams that you need to clear after you finish the course for the car distribution business of yours as well as some modules in the same. The exams are related in order to provide you with the relevant certification courses in car distribution. There is some fee that is involved in the certification exam to be taken for the same. The major hurdle is to clear the exam and get the relevant certification that is required. When you are done and get the certificate required, you need to begin the application process which goes into the consideration for the starting of your business in the field of distribution of cars.


You need to choose an office space that you can set up on order for your potential clients to visit. You need to choose the name for your company and get it registered. The physical location with a good location as well as sufficient space is the essential part for any of the dealerships. You will then pick and choose from the various vehicle types that you need to sell. You can make your choice amongst the two wheelers, sports vehicles, commercial vehicles, family cars. You can also choose an option of the choice from amongst the used cars and the new cars available in the market. You can also choose to buy the franchise from the production units in order to become the authorized dealers for the cars.

Legal aspects

Once you have completed all the requirements to set up your business, you need to also to take care of the legal aspects of your business. Hence you need to take the permission and get the zoning verification letter from the relevant department in your zone. This shows that the location where you choose to do business is approved by the city. The letter is required in order to get the surety bond.

Surety bond

You need to get the required surety bond. The surety bond, as the name suggests is the surety that is applicable for a distributor to abide to all the requirements that is set up for a business in the distribution of the cars. The bond is secured such that it is bound by your personal credit history. It is the requirement based upon the credit history on the personal basis, hence it needs to be more requirements as well.

Business license

You also need to get a business license approved from the state from which you choose to do your business. The required forms can be found at the state government?s website.

Thus we have seen as to how to become s distributor to start your own vehicle business.

Related directory categories

Car Accessories
Car Care Products
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Car Safety Products
Car Insurance
Car Electronics
Car Batteries
Used Cars
Cars And Trucks
Vehicles Business Information
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Disclaimer: The suggestions in the article(wherever applicable) are for informational purposes only. They are not intended as medical or any other type of advice