How do you get a car dealer license?

Answer 1

Car Dealer's License RequirementsThis depends entirely on your state. See the link to the right for an example from California, or search for your state DMV information with the Google form beneath it. Your search terms might be "[your state] car dealer license".

For example, here is more information on the requirements California.

• An applicant must take a six hour preparation class to become a licensed car dealer. There are 2 main types of dealers, retail or wholesale. Retail Dealers have more restrictions as liability which required more dealer insurance as well as a larger dealer bond, but retail dealer are the only dealers allowed to sell to the public. Wholesale dealers may only sell to other dealers.

• The applicant must take the class and pass a 40 question test, then submit an application and a bond, then submit photos and pass an on-site inspection. Upon review the DMV inspector will review the dealer's application and then approve the tempory license. Often the largest struggle for those attempting to start a retail dealership is the zoning for the city or county to allow a dealership at the chosen location. Make sure that the location you choose is zoned properly and/or will be an acceptable location for a retail dealership. Rarely do wholesale dealerships struggle getting proper zoning permission from the government.

• Once a would be dealer passes the test they must prepare for DMV approval from the inspector. To prepare the following tasks must be done. The applicant must produce 11 photos 1)building 2)outside sign 3)display area 4)office 5)business license 6)resale permit 7)telephone 8)inside signs 9)locked cabinet 10)checkbook 11)dmv dealer book

• Then the applicant must submit: zoning approval letter, OL902 certificate of class completion, TSM888 business license resale permit fictitious name statement telephone listing livescan fingerprint card personal history questionnaire completed dmv dealer application bond in the name of the owner / dealership.

From our my expertise licensing individuals nationwide the law states that your business address cannot be a PO Box or a residence.

The current law says that you have a physical address as your business address in an area that is zoned and approved by the state for such use. Usually that's the biggest challenge and where most of the overhead comes from.

Go and talk with your county's tax office/DMV.

in California dealer applicants must begin with a class and a dmv examination

dmv licenses teachers to teach this course

we are one of these teachers

here is the link to the dmv list of providers

http://www.dmv.ca.gov/vehindustry/ol/dlr_edu_provider.htm

800-901-5950 for more information

http://www.dmv.org/car-dealers.php

DMV.ORG - The Unofficial Guide to the DMV

If I'm not mistaking, that has to be done at the DMV.

apply to the state tax commission in your state

In the state of Florida you have to have garage liability insurance, a surety bond and a state approved building to hang it...this is all after you take a state approved dealers license course and state fingerprints. The initial cost is about $2000.00 in fees and charges

The requirements for getting a dealer license varies from state to state. Most states require you to have a business location with signage, number of parking spaces, etc. You may need to take a test. Most states require a bond which is only an insurance policy you obtain from an insurance agency. The application can cost anywhere from $50 up to several hundred dollars. Most states will not issue a license to a convicted felon.

The requirements for a license are strict to protect the consumer and to protect dealers. They have major investments in their businesses and do not want to compete with individuals.

Current law for most states says that you have a physical address as your business address in an area that is zoned and approved by the state for such use. Now you can choose to have a license as individual or as a corporation. The only difference is on the amount of liability you are willing to take personalty. It's always best to for form a corporation, specially when dealing with cars.

Different states have different regulations on how to qualify for a dealers license. So its a good idea to check with your local DMV to check. But generally speaking once you have a license from any state then that license is good anywhere in the states.