Guide — choosing the model
| Retail | Wholesale | |
|---|---|---|
| Who you sell to | The public | Licensed dealers only |
| Premises | Office + display area, inspected | Office; display area usually waived |
| The famous exception | — | California wholesale-only: home office allowed, $10,000 bond under 25 cars/yr |
| Where the money is | Retail margin, financing, add-ons | Volume and turn at auction |
| Consumer law exposure | Full — warranties, disclosures, advertising rules | Lower — business-to-business sales |
Choose retail if your customers are drivers: you want a lot, signage, walk-in traffic, and retail prices. Choose wholesale if your customers are other dealers: you buy right at auction, move cars quickly, and never deal with retail buyers. Many operators start wholesale — the premises bar is lower and in California the bond drops to $10,000 under 25 cars a year — then add retail when the business proves itself.
Both models run through the same front door: your state's license. The path checker prices both routes for the eight deep states with your expected volume applied.