SURETY SOLUTIONS BLOG
If you want to sell motor vehicles, or you want to be involved in the business of selling, buying, or displaying for sale motor vehicles, then you will have to get your car dealer license (also known as auto dealer license or motor vehicle dealer license.)
Not sure if you need a dealer license? Check out this post on
Part of getting your license involves purchasing a car dealer bond (also known as a motor vehicle dealer bond or an auto dealer bond. ) The following five steps explain how to get your license and your bond so you start a car dealership. Make sure you check your state guidelines for specific rules and regulations.
How to get a Car Dealer License
Step #1: Contact Your Local DMV or DOL
Every state has individual requirements for becoming a car dealer. Your local DMV (Department of Motor Vehicles) or DOL (Department of Licensing) will know what those requirements are, so contacting them is the first step.
- New vehicle dealer license
- Used vehicle dealer license
- Wholesale vehicle dealer license
- Motorcycle dealer license
Step #2: Meet Requirements
Depending on the state you live in, this could amount to a long list. Before getting your car dealer license, most states will require you to fulfill some general guidelines like securing a properly zoned location and getting your location and business approved.
- Registering your business
- Meeting zoning requirements
- Attending a pre-licensing seminar
- Providing proof of insurance
- Passing a background check
Step #3: Complete Car Dealer License Application
Step #4: Purchase Motor Vehicle Dealer Bond
Almost every state will require you to purchase a car dealer bond. A car dealer bond is a type of surety bond that protects your customers. If your customers feel you are running an unethical business, they can make a claim against your bond.
Do not overlook this step. Obtaining a car dealer bond is vital to ensuring your customers that you will stand in good faith behind your actions. The bond guarantees your customers they will be protected should something go awry in a business transaction.
Step #5: Submit Car Dealer Application